children of an idle brain

Mining PRs and the Ottotrans™, Part 24

The Ottotrans™ is back with Baja Mining (BAJ.to) once again le feature du jour.

This is what they wrote:

VANCOUVER, BRITISH COLUMBIA–(Marketwire – 09/08/10) – Baja Mining Corp. (“Baja”) (TSX:BAJ – News)(OTXQX: BAJFF) is pleased to announce that its 70% owned project company, Minera y Metalurgica del Boleo S.A. de C.V. (“MMB”), has now received confirmation from the ECAs and the Commercial Lenders (both defined below) and from the Korea Development Bank that all necessary credit approvals have been obtained in relation to the project financing facilities (the “Facilities”) for the development of the Boleo project (the “Project”) in Mexico. Total credit approved Facilities now amount to US$823 million, the entire amount of debt financing required to develop the Project. The amounts to be provided by each lender under the Facilities are detailed in the table below.
The Facilities will be provided, subject to satisfaction of customary project financing conditions precedent, by (i) a group of export credit agencies (the “ECAs”) comprised of The Export-Import Bank of the United States and Export Development Canada; (ii) the Korea Development Bank (all mentioned in the press release dated 29 July 2010); and by (iii) a group of commercial banks comprised of Barclays Capital (the investment banking division of Barclays Bank PLC), Standard Bank plc, Standard Chartered Bank, UniCredit Bank AG and WestLB AG (together, the “Commercial Lenders”). MMB is working with the Commercial Lenders to arrange US$100 million of loans, consisting of US$50 million of senior project and US$50 million of senior cost overrun facilities, and to provide the proposed copper hedging program.
The combined Facilities total US$823 million. This will be the entire amount of required debt financing for Boleo.


EXIM Bank                            419
EDC                                  150
KDB                                   90
Commercial Lenders                   100
Total                                759
KDB                                   64
TOTAL                                823

Drawdown of the project financing will be subject to a number of standard conditions precedent, including completion of satisfactory legal documentation, implementation of a hedging program and expenditure by Baja and its Korean partners of their required equity contributions. Under the facility documents, MMB will be required to enter into offtake agreements for at least 70% of copper and cobalt production for the first 10 years of production and to enter into the proposed copper hedging program. MMB has finalized the terms of the 70% offtake arrangements with a major international trading entity.
Baja and its Korean partners are working with the ECAs, the Korea Development Bank and the Commercial Lenders towards finalizing all such necessary documents as required for initial signing of the Facilities to occur in the near future.
MMB is being advised on the financing by Endeavour Financial International Corporation, and aims to close the transaction and recommence construction at Boleo as soon as possible.

And This Is What It Means:

VANCOUVER, BRITISH COLUMBIA–(Marketwire – 09/08/10) – Baja Mining Corp. (“Baja”) (TSX:BAJ – News)(OTXQX: BAJFF) is pleased to announce that its 70% owned project company, Minera y Metalurgica del Boleo S.A. de C.V. (“MMB”), is really really close to getting the money it needs to build the Boleo mine, honest like. I mean, you think we were close last time we announced that we were close back in July? Oh maaan, that’s not nearly as close as the close we are now.

Meanwhile Baja is determined not to go into the details of the offtake agreement and the hedge program, because the company management team isn’t that freakin’ stupid and has no intention of revealing how bad this deal is going to be for the retail sheep at this stage in the game. Baja much prefers allowing more time for insiders to continue their non-stop selling of stock at  the moment and allowing people without intimate knowledge of the deal to live in some sort of false hope for a little while longer. Tequila reposadas served, the end.

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