Tuesday, August 28, 2012

Baja Mining Re Re-dux

Slow motion train wreck Baja Mining made an announcement today ...

"Baja Mining Corp. ("Baja") (TSX:BAJ)(OTCQX:BAJFF) reports that the Korean consortium (the "Consortium") has contributed US$90 million to its subsidiary Minera y Metalurgica del Boleo S.A. de C.V. ("MMB"), completing Stage I of the financing announced by Baja on July 26, 2012.

The Korean Consortium now owns a majority interest (51%) in MMB. However, the formalities required to transfer the shares and transfer control have not yet been completed."

Yes well the paper rises to a dime on the blue chip TSE and by 100% certain rights should not be trading at all. This project is completely diluted to the Koreans now and the only possible salvation is a highly unlikely rights offerring that even a major (well burnt) stakeholder has already rejected.

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"Baja Mining Corp. has provided the following update.

In May, Baja retained BMO Capital Markets to assist in considering financing options and possible sources of financing. Non-disclosure agreements were signed by a number of interested parties, which were granted access to Baja's data room and attended management presentations. A draft independent engineering report prepared by SRK was recently provided to parties participating in the BMO process.

Baja has not yet received any proposals as a result of the BMO process. A number of parties continue with their reviews, including several parties who only recently signed non-disclosure agreements and obtained data room access, and the draft SRK report and are in the early stages of reviewing the materials.

As previously advised, Baja's cash forecasts indicate that it will have insufficient funds to maintain current levels of effort beyond Aug. 1, 2012.

Baja previously announced its preliminary view that projected operating expenses at the Boleo project have risen significantly, driven by increased mining costs, higher sulphur costs, higher diesel volumes and costs, and higher labour expense (rate and time).

Management has now advanced its review of the anticipated operating costs at the Boleo project, and currently estimates operating costs at between $50 and $60 per ore tonne.

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The chit is flying seriously fast and furious in Baja land these days and from all directions.

Paper krapped out big time on the news of MASSIVE cost overruns on Bolero and Greenslade was shown the frikkin door by major stakeholder Mount Kellett Capital Management LP. Accusations were related to "personal fiefdom with no regard for proper disclosure or good governance,"

NOW it's Mr. Greenslade's daughter, Kendra Low, who's crying bloody murder in BCSC because her $ 250,000 job was instantly toasted.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:BAJ-1966777&symbol=BAJ&news_region=C"target=_blank"
While claiming no special knowledge of BAJ short of following the deal losely for the past 16 months, this monkey CANNOT understand how a corporate secretary can pull down those kinds of numbers.

This level of compensation is outrageous, insulting and goes far in explaining why getting rid of Mr. Greenslade is the best thing for this seriously, SERIOUSLY, holed deal.

In the 2011 proxy circular we learn Mr. John Greenslade's base salary, paid in 2010 to Kendron Petroleum Management Corp, was $377,500, and he received a bonus of $750,000. Darn good "work" when a body can get away with it eh?



This monkey HAD to go through the last financials of BAJ.v to figure out whats what. Burning through $ 5.6m in 3 months for overhead is horrid but claims of complete stupidity/ignorance/denial about this seriously cash crunched brick sandwich from the Greenslade camp is too much.

"The Company was not in compliance with all covenants subsequent to March 31, 2012 as a result of estimated cost overruns exceeding the Company’s available financing which came to management’s attention subsequent to March 31, 2012."