August 7, 2012 / 2:27 PM / in 5 years

Baja Mining gets fresh extension from lenders for Mexico project

Aug 7 (Reuters) - Toronto-listed Baja Mining Corp said it signed another standstill agreement with lenders to its 70-percent-owned Boleo copper-cobalt-zinc project in Mexico after its Korean partners agreed in July to inject $90 million into the development.

The standstill agreement, which expires on Sept. 15, replaces a previous agreement that expired on Aug. 1.

Under the financing agreement, the Korean consortium, which owns 30 percent of Boleo, agreed to inject $11.2 million into the project immediately and is required to pay an additional $18 million by Aug. 9 and another $60.8 million by Aug. 20.

Baja, whose largest shareholder is Mount Kellett Capital Management LP, said under the standstill arrangement the lenders will temporarily refrain from exercising rights related to certain default provisions.

The new agreement includes an option to extend the standstill if required, Baja said.

Shares of Baja, which has a market value of about C$30 million, were down 1.5 Canadian cents at 7.5 Canadian cents on the Toronto Stock Exchange.

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