Baja Mining Corp. ("Baja")
(TSX:BAJ - News)(Pinksheets:BAJFF
- News) is pleased to
announce that its 70% owned project company, Minera
y Metalurgica del Boleo
S.A. de C.V. ("MMB") met all of the condition precedents necessary
for the Export-Import Bank of the United States ("US EXIM") loan
facility to become operative on January 14, 2011.
The interest rate on the US$ 419.6
million US EXIM loan facility has consequently been fixed at 3.02% for the
full 14 year term of the loan.
"We are extremely pleased with the
interest rate secured on the US EXIM loan," said John Greenslade, President & CEO. "We have been able
to secure a rate that is among the lowest in recent history for over 50% of
our total debt facilities."
The US EXIM loan facility is part of the
US$ 858 million of financing facilities for the construction and development
of the Boleo project located in Baja California
Sur, Mexico. The financing facilities comprise US$ 823 million of project
debt financing facilities and a US$ 35 million equity cost overrun support
facility signed on September 28, 2010.
While working on the completion of the
condition precedents, construction has moved forward at Boleo.
"As of mid January the project has
made significant progress in mobilizing site construction and committing to
the purchase of mining and process plant equipment," said Mike Shaw,
COO. "The EPCM contractor mobilized to site in November and the site
earthworks contractor began working in December. In addition, construction
contracts for completion of camp construction, haul roads and infrastructure
have been issued. A cement batch plant is being mobilized to be closely
followed by first concrete installation construction."
Baja Mining (TSX:BAJ - News)(Pinksheets:BAJFF
- News) is a mine
development company with a 70% interest in the Boleo
copper-cobalt-zinc-manganese Project located near Santa Rosalia,
Baja California Sur, Mexico. Baja is the project operator and a Korean
syndicate of industrial companies holds the remaining 30%. Boleo is fully permitted, fully funded, currently under
construction and targeted for copper commissioning in 2012, and copper
production in early 2013. Boleo has 265 Mt of
measured and indicated resources (including 85 Mt of proven and probable
reserves) and 165 Mt of inferred resources. A March 2010 updated technical
report to the 2007 definitive feasibility study, confirmed that Boleo can be developed economically at an after-tax IRR
of 25.6% (100% equity). The Project, which has a minimum scheduled mine life
of 23 years (during which approximately 70 Mt of the noted proven and probable
reserves will be exploited), has a NPV of US$ 1.3 billion (8% discount rate),
and an average life-of-mine cash cost of negative US$ 0.29/lb for copper, net
of by-product credits. Metal Prices are based on SEC pricing guidelines. For
more information, please visit www.bajamining.com.
On behalf of the Board of Directors of
Baja Mining Corp.
John W. Greenslade,
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.
The Toronto Stock Exchange neither
approves nor disapproves the information contained in this news release.