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Boleo construction to continue, Baja says

Keywords: Tags  Baja, Boleo, copper, cobalt, zinc, manganese, Kores, Samuel Frizell

NEW YORK — Baja Mining Corp.’s flagship Boleo Mine in Baja California Sur, Mexico, will receive a new package of loans from its South Korean financiers, allowing construction on the copper-cobalt-zinc-manganese mine to continue, the Vancouver, British Columbia-based company said Tuesday.

Baja, which owns a 49-percent stake in project joint-venture Minera y Metalurgica del Boleo SA de CV (MMB), said MMB investor Korean Resources Corp. (Kores) has negotiated a $419-million loan from the U.S. Export-Import Bank to finance further development at the mine site. The new loan includes $126 million previously outstanding under the original 2010 loan with MMB, the obligations for which have been assumed by Kores, the sole borrower under the agreement. Kores, one of a handful companies in the Korean consortium, has agreed to provide MMB with a new loan facility, Baja said.

In addition, Kores has advanced another $40 million to MMB to continue construction on the project. Kores already provided $104 million in short-term funding in October and November to address cost overruns at the mine, Baja said.

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