Baja Mining Corp has signed a second standstill agreement with lenders to its 70% owned subsidiary, Minera y Metalurgica del Boleo (MMB), in relation to financing for the Boleo project located in Mexico.
The new standstill agreement, which expires on 15 September this year, replaces a previous agreement that expired on 1 August.
The agreement requires an immediate advance of $11.2m to MMB by the Korean consortium, which currently owns the other 30% of the Mexican subsidiary.
Under the financing agreement, the Korean consortium is required to pay an additional $18m by 9 August and a further $60.8m by 20 August.
In addition, the company said the new standstill agreement includes an option to extend the standstill if required.
These advances will complete the Stage I financing agreed with the Korean consortium as previously announced by Baja.
The standstill will cease in case if the Korean consortium decides not to make any further investment in the project and proceed to Stage II, as well as acquire an additional 21% interest in Boleo and control of its board by no later than 20 August.
The mining firm said under the standstill arrangement the lenders will temporarily refrain from exercising rights related to certain default provisions.
