Baja FULLY funded FOR BOLEO CONSTRUCTION ?
PROJECT UPDATE
Baja Mining Corp. ("Baja")
is pleased to announce that its Boleo Project is now
fully funded for construction following Baja?s
recently completed US$858 Million project financing and C$184 Million bought
deal financing.
?After signing the US$858 Million
project financing facilities on September 28, 2010, the final component
required to complete this milestone financing was the equity raise of C$184
Million? said John Greenslade, President & CEO,
?Today, with over US$1 Billion raised, we are fully funded and ready to move the
Boleo Project to the construction phase with the goal
of reaching copper production in 2013?.
Michael
Shaw, Chief Operating Officer, stated, ?We are a
?shovel ready? project with mass earthworks ready to
start within a month. Our most significant long lead equipment has been
fabricated or is in an advanced state of fabrication. We have released our EPCM
contractor and construction activities are re-commencing at site?.
Baja
will hold a conference call on Wednesday, November 24, 2010 at 8:00 am PST (11:00
am EST) to discuss the completion of the Boleo
funding. Call-in details are at the end of this release.
Additionally,
in conjunction with the project financing facilities, Louis Dreyfus Commodities
Metals Suisse SA (?LDC?) provided a US$35 Million convertible
cost overrun facility (?CoF?) which, if drawn,
converts into common shares of Baja at C$1.10 per common share. As part of the CoF, Baja has also issued LDC warrants for 7,408,727 common
shares of Baja at a strike price of C$1.375 per common share which are
exercisable in the event that the CoF is not drawn
(proportionately to any undrawn CoF amount). Further
details of the LDC transaction can be found in Baja?s June 7, 2010 press release.
The Company
has been advised on the project finance facilities and the LDC facilities by
Endeavour Financial International Corporation.
Drawdown of
the project financing facilities is subject to a number of conditions precedent, including implementation of a hedging program and
expenditure of both the equity contributions and the subordinated debt.
Baja Mining is a Vancouver,
Canada-based publicly traded mine development company (TSX:BAJ; OTCQX:BAJFF)
with a 70% interest in the Boleo
copper-cobalt-zinc-manganese Project located near Santa Rosalia,
Baja California Sur, Mexico, targeted for copper commissioning in 2012, and
production in early 2013. A Korean syndicate of industrial companies holds the
remaining 30%. Baja is the project operator. The Boleo
Project has a copper/cobalt/zinc/manganese resource consisting of 265 million tonnes of measured and indicated resources (including
approximately 70 million tonnes of proven and
probable reserves) and approximately 165 million tonnes
of inferred resources. A January 2010 NI 43-101 compliant updated technical
report to the 2007 definitive feasibility study confirmed that the Boleo Project can be developed economically at an after-tax
internal rate of return of 25.6% based on 100% equity. The Project, which has a
minimum scheduled mine life of 25 years (during which the noted proven and
probable reserves will be exploited), has a NPV of US$1.306 billion, using an
eight percent discount rate, and an average life-of-mine cash cost of negative
$0.29/lb for copper, net of by-product credits.
ON BEHALF OF THE BOARD OF DIRECTORS OF BAJA MINING
CORP.
"John W. Greenslade"
JOHN W. GREENSLADE, PRESIDENT
For further information please contact John Greenslade, President, at (604) 685-2323
Conference Call and Webcast Details
Date: Wednesday, November 24, 2010
Time: 8:00 am PST (11:00 am EST)
Dial in: North America: 1-800-319-4610, International:
+1-604-638-5340
Webcast: https://services.choruscall.com/links/bajamining101124.html
Some of the statements contained in this release are forward-looking
statements, within the meaning of Canadian securities laws, such as statements
that describe the anticipated mine life; the Company?s
expected NPV and IRR of the project; expected future metal prices; expected
timing of copper production and other statements. Since forward-looking
statements are not statements of historical fact and address future events,
conditions and expectations, forward-looking statements by their nature
inherently involve unknown risks, uncertainties, assumptions and other factors
well beyond the Company?s ability to control or
predict. Actual results and developments may differ materially from those
contemplated by such forward-looking statements. Material factors that could
cause actual revenues to differ materially from those contained in such
forwarding-looking statements include (i)
fluctuations on the prices of copper, cobalt, zinc and manganese, (ii)
interpretation of contract terms, (iii) accuracy of the Company?s
and consultants? projections, (iv) the Company?s
ability to finance, receive permits for, obtain equipment, construct and
develop the El Boleo Project, (v) the effects of
weather; operating hazards; adverse geological conditions and global warming,
(vi) impact of availability of labor, materials and equipment; and (vii)
changes in governmental laws, regulations, economic conditions or shifts in
political attitudes or stability.
These forward-looking statements represent the Company?s views as of the date of this release. There can be
no assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated
in such statements. Readers should not place undue reliance on any forward-looking
statements.