NEW YORK Baja Mining Corp. has not yet heard whether its Minera y Metalurgica del Boleo SA de CV (MMB) subsidiary will receive an $80-million bailout from Korean investors that would ensure its flagship Boleo Mine in Baja California Sur, Mexico, remain in development.
Baja was originally due to find out Tuesday whether MMB, which is 49-percent owned by Baja and 51-percent owned by a Korean consortium of investors, would receive the financial injection, interim chief executive officer Tom Ogryzlo told AMM Monday.
However, it hadnt heard as of Thursday afternoon, Ogryzlo said.
"(Talks are) still ongoing. Were expecting news in the next two or three days," he told AMM late Thursday. "Im hoping this will be the icing on the cake."
If the $80 million arrives from the Korean consortium, which includes Korea Resources Corp. (Kores), LS-Nikko Copper Inc., Hyundai Hysco Ltd., SK Networks Co. Ltd. and Iljin Materials Co. Ltd., Baja would see its stake in MMB fall to just 10 percent from its current 49 percent, Ogryzlo said. If it doesnt receive the funding, Ogryzlo has said development of the Boleo copper-cobalt-zinc-manganese project will cease (amm.com, Oct. 19).
The Korean consortium already contributed $90 million for the survival of the company in August, but overrun costs have risen to $440 million from $400 million, Ogryzlo said.
The Vancouver, British Columbia-based company has $20 million in place to conduct an orderly shutdown if necessary, Ogryzlo said earlier this month.