BAJA MINING WELCOMES KORES AS DEVELOPMENT PARTNER AT EL BOLEO PROJECT
Baja Mining Corp. (the “Company” or “Baja”) is pleased to announce a new development partner and financing
arrangements for the construction of its El Boleo Project (the “Project”).
Development Partner and Construction Financing
It is with great pleasure that Baja announces it has entered into an agreement with a Korean consortium (the
“Consortium”) led by Korea Resources Corporation (“Kores”) pursuant to which the Consortium will acquire a
30% interest in the Project through the acquisition of a 30% interest in the Company’s Mexican subsidiary,
Minera y Metalurgica del Boleo S.A. de C.V. (“MMB”).
As consideration for the acquisition of a 30% interest in the Project, the Consortium will provide a financing
package of up to US$435 million. This will consist of an up-front cash payment to Baja, reimbursement of agreed
project expenditures since completion of the DFS, payment of the Consortium’s proportionate share of project
capital costs and, in conjunction with a Korean lending agency, a package of senior and subordinated debt
financing. In addition, the Consortium will provide a completion guarantee in respect of its share of project
financing. Through the transaction, the Consortium will also acquire a right to offtake 30% of the El Boleo mine’s
production on commercial terms.
The signing of the Sale and Purchase Agreement took place at a ceremony in Washington today attended by a
delegation from the Government of Korea led by Mr Youn Ho Lee, the Minister of
Knowledge Economy. The delegation included Mr Han-Ho Lee, President and CEO of Kores and a number of
other senior Korean Government officials, demonstrating the importance of this transaction.
As previously reported, Baja appointed Bayerische Hypo-und Vereinsbank AG, a member of Unicredit Group
(“HVB”), as the mandated lead arranger to arrange and underwrite a project debt financing comprising a project