BAJA MINING SECURES US$64 MILLION EQUIPMENT LEASE AGREEMENT WITH
Mining Corp. (the “Company”) is pleased to announce that its wholly
owned Mexican subsidiary, Minera y Metalurgica del Boleo S.A. de C.V., has
entered into an agreement with Caterpillar Financial SARL (“Cat Financial
(Zurich)”), of Zurich, Switzerland, to act as Arranger and Provider in
relation to an Equipment Lease Facility (the “Facility”) in an
aggregate principal amount of up to US$64 million.
proceeds of the Facility will be used for the financing of mobile (underground
and surface) equipment in connection with the El Boleo project
(“Boleo”) located near Santa Rosalia, Baja California Sur,
Mexico, which is 100% owned by the Company.
The Facility has a
final maturity date of 7 years from initial drawdown. The Agreement is subject
to the satisfaction of various conditions precedent. The Company will act as
guarantor of the transaction.
Caterpillar Financial (Zurich) is the structured trade and project
finance arm of Cat Financial, which itself is a wholly-owned subsidiary of
Caterpillar Inc. Cat Financial provides a wide range of financing alternatives
for Caterpillar machinery and engines, Solar® gas turbines, as well as
other equipment and marine vessels. The company also extends loans to customers
and dealers. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe, with headquarters in Nashville, Tennessee,
The Facility is in
addition to the previously announced underwritten commitment from Bayerische Hypo-
und Vereinsbank AG, a member of the UniCredit Group, for a Term Loan Facility of
US$475 million and a Cost Overrun Facility of US$40 million.
International Corporation (“EFIC”) is retained by the Company as
its Financial Advisor for the financing of the El Boleo Project. EFIC continues
to work with the company on the successful closing of the Facilities as well as
discussions with offtake counterparties and subordinated debt providers.
The Company completed a
Definitive Feasibility Study on Boleo in May 2007. The Company is presently
preparing the Boleo site for construction and will be proceeding to break
ground in early 2008.
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
Some of the
statements contained in this release are forward-looking statements, such as
statements that describe the Company’s expected timing of lease draw
down, expected timing of mobilization of construction activities 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.