NEW YORK Baja Mining Corp. has secured a further
extension of a standstill agreement from lenders, as well as
$84 million from a South Korean consortium of shareholders,
enabling it to continue construction on its flagship Boleo Mine
in Baja California Sur, Mexico.
The Vancouver, British Columbia-based company has faced a
financial crisis in recent months. Since June, lenders have
frozen funds to its 49-percent-owned Minera y Metalurgica del
Boleo SA de CV (MMB) subsidiary, which faces $440 million in
overrun costs (
amm.com, July 27).
Baja has relied on the consortium to keep the project going.
The most recent $84-million bailout is in addition to $120
million in prior funding from the consortium, which includes
Korea Resources Corp., LS-Nikko Copper Inc. and Hyundai Hysco
Ltd., among others.
The lending extension from the banks, which was contingent
on the bailout, allows for construction of the Boleo
copper-cobalt-zinc-manganese mine to continue until Nov.
The South Korean consortium is now talking with the lenders
to renegotiate the projects original financing agreement
in an effort to partially reactivate the loan facilities by
Nov. 20, according to Baja.