July 13, 2012 / 1:58 PM / 6 years ago

Baja Mining says yet to get funding for Mexico project

(Reuters) - Baja Mining Corp BAJ.TO, which is grappling with cost overruns at its flagship Boleo project in Mexico, said it has not yet received any funding proposals for the project.

Baja shares, which have lost more than 80 percent of their value in the last three months, fell as much 18 percent to 13.5 Canadian cents on Friday morning on the Toronto Stock Exchange. The stock was one of the top percentage losers on the exchange.

The Canadian miner has been struggling to cover cost overruns at its copper-cobalt-zinc Boleo project, which is jointly owned by Baja and a Korean consortium.

Baja said it will not be able to fund the project beyond August 1.

The company last month said lenders had agreed to a 45-day standstill for Boleo project financing.

Baja in May raised going concern doubts and hired BMO Capital Markets to help it find possible sources of funding for the project. Baja said it has not yet received any proposals.

Spending at the Boleo project is expected to be $246 million more than the $1.14 billion estimated in 2010 because of design changes and higher fuel and labor costs.

Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Supriya Kurane

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