Baja Mining Corp. ("Baja" or the "Company") (TSX VENTURE: BAJ)(OTCQB: BAJFF) reports that further to its news release dated April 30, 2015, and details of the amended cash call notice dated May 17, 2015 (the "Amended Cash Call"), as previously described in the Company's Management Discussion & Analysis for the quarter ended March 31, 2015 (available on www.sedar.com), Baja has received from Minera y Metalúrgica del Boleo, S.A. P.I. de C.V. ("MMB") a defaulting notice in respect of the Amended Cash Call. Pursuant to the Amended Cash Call, Baja was required to contribute US$7,600,000 no later than June 16, 2015, by way of either shareholder loans or subscriptions for new shares, with which it was unable to comply.
Therefore, as noted in its April 30, 2015 news release, dilution of the Company's 10% ownership in MMB may result. However, the extent of such dilution will depend upon the portion of the US$200 million funding, previously advised by Korea Resources Corporation ("KORES") as required to fund MMB's operations through the remainder of 2015, that is satisfied by equity contributions of shareholders pursuant to cash calls made by MMB, and final resolution of the dilution formula to be applied. In April 2014, Baja reached a non-binding agreement in principle with KORES on an equity dilution formula which would result in dilution reducing Baja's ownership in MMB by approximately one percentage point for each $100 million of cash calls made to the MMB by shareholders (see Baja News Release dated April 2, 2014). Discussions continue with KORES on finalizing the dilution formula and other aspects of the new shareholders agreement.
The Company has been advised by MMB that the first shipment of copper from Boleo, originally scheduled to take place in May, has been delayed pending product certification. The offtaker for Boleo copper, Louis Dreyfus, has been working with Intertek to obtain the non-registered Grade A registration that Boleo copper meets specifications, and this has now been accomplished and the first shipment should take place in the near future.
Additionally, the Company is pleased to announce that it has commenced metallurgical testwork, including leaching and recovery, solid-liquid separation and electrowinning tests, on samples taken from the Cinto Colorado tailings located in Santa Rosalia, adjacent to Boleo. The Company has engaged Met-Solve Laboratories of Langley, BC to undertake and coordinate the testing, which it expects to be completed by August 2015. The test work is being supervised by the Company's Vice President of Metallurgy, Dr. David Dreisinger, with Dr. Thomas Glück, as Project Manager, the former Director of Process Technology at Baja and a co-author of the 2010 Boleo Technical Report.
Dr. Dreisinger holds the position of Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia, where he has been a professor since 1988. He has published over 200 papers and has been involved as a process consultant in industrial research programs with metallurgical companies. He has participated in 15 U.S. patents for work in areas such as pressure leaching, ion exchange removal of impurities from process solutions, use of thiosulfate as an alternative to cyanide in gold leaching, and leach-electrolysis treatment of copper matte. Dr. Dreisinger also co-invented the Mt. Gordon Copper Process for copper recovery from sulfide ores and the Sepon Copper Process for copper recovery from sulfidic-clayey ores. He has been actively involved in the development of the proposed metallurgical flow sheet for Boleo and is one of the recognized experts in the world in the area of hydrometallurgy.
For further information, please contact Baja's Interim CEO Tom Ogryzlo at 604?685?2323 or via email at [email protected]
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CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. Forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this press release are based on our current estimates, expectations and projections, which the Company believes are reasonable as of the current date. Actual results could differ materially from those anticipated or implied in the forward-looking statements and as a result undue reliance should not be placed on forward-looking statements. Additional risks and uncertainties can be found in the Company's reporting documents filed on SEDAR ( www.sedar.com ), including its Management Discussion and Analysis. Forward-looking statements are given only as at the date of this press release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.