Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Vancouver-based Baja Mining Corp. (TSX: BAJ) announced this morning that it has landed two extensions of a standstill agreement with lenders to its Minera y Metalúrgica del Boleo S.A. de C.V. subsidiary.
In June, one of Baja’s largest shareholders filed suit against the company for late disclosure of cost overruns at the company’s Boleo project and demanded an independent investigation into the approximate US$246 million in overruns.
The company then announced that it had achieved a standstill agreement with lenders, who agreed “to refrain from exercising rights and remedies under the Boleo project financing agreements until August 1, 2012, with respect to certain defaults and events of default that are currently outstanding or that may arise during the standstill period.”
The company has since announced a second standstill agreement running to September 15, and various extensions.
In this morning’s announcement, Baja stated that lenders of Minera y Metalúrgica del Boleo, its 49%-owned subsidiary, have agreed to two further extensions of the standstill agreement to November 20.
The company said that the extensions, plus funds it has recently been advanced from a Korean consortium, will allow construction of the Boleo project to continue until November 20.
Courtesy of BIV.com
