Baja Mining Reports That it Has Settled All Disputes with LDCMS
25 January 2014 - 12:04AM
Marketwired
Baja Mining Reports That it Has Settled All Disputes with LDCMS
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 24, 2014) - Baja
Mining Corp. ("Baja") (TSX:BAJ)(OTCQB:BAJFF) is pleased to announce
that it has reached an agreement with Louis Dreyfus Metals
Commodities (Suisse) SA ("LDCMS") to settle their disputes relating
to the Boleo Project in Baja California, Mexico
As reported in previous news releases, in May 2012, LDCMS
commenced arbitration proceedings against Baja in the London Court
of Arbitration (the "LCIA") and, in June 2012, proceedings against
Baja in the Supreme Court of British Columbia. Both proceedings
related to the Boleo Project cost overruns announced by Baja in
April 2012. As recently reported in Baja's Interim Financial
Statements and MD&A for the period ended September 30, 2013,
Baja filed a counterclaim against LDCMS in the LCIA arbitration
proceedings. As a result of bringing the counterclaim, Baja was
required to post Cdn$200,000 with the LCIA (the "Counterclaim
Security"), which funds were held in trust and were to be paid to
LDCMS in the event that the arbitral tribunal in the LCIA
arbitration proceedings awarded legal costs to LDCMS as a result of
its defence of Baja's counterclaim.
As a result of the settlement announced today, Baja and LDCMS
have fully and finally terminated these proceedings. Under the
terms of the settlement:
- Baja and LDCMS agreed that the Convertible Cost Overrun
Facility dated September 28, 2010 (the "COF") is terminated and no
longer exists;
- Both Baja and LDCMS agreed to fully and finally withdraw all
known claims made or which could have been made in the LCIA
arbitration proceedings and the proceedings in the Supreme Court of
British Columbia;
- Baja shall receive a refund of the Counterclaim Security from
the LCIA; and
- Baja and LDCMS agreed that the Bonus Warrant Agreement dated
September 28, 2010 and bonus warrants issued to LDCMS pursuant to
the COF, which were never exercised by LDCMS, are terminated and no
longer exist.
The other terms of the settlement are confidential.
It is Baja's view that it is permanently impossible for a draw
to be effected under the Letter of Credit provided by LDCMS in
relation to the COF, and Baja has requested that the letter of
credit be returned to the issuing bank for cancellation.
Baja is very pleased to have resolved its differences with LDCMS
on an amicable basis and looks forward to a productive future
relationship with LDCMS, which remains a significant stakeholder in
the Boleo Project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This
press release contains forward-looking statements or
forward-looking information (forward-looking statements). These
statements can be identified by expressions of belief, expectation
or intention, as well as those statements that are not historical
fact. Forward-looking statements involve a number of risks,
uncertainties and assumptions that could cause actual results or
events to differ materially from those expressed or implied by the
forward-looking statements. Forward-looking statements contained in
this press release are based on our current estimates, expectations
and projections, which the company believes are reasonable as of
the current date. Actual results could differ materially from those
anticipated or implied in the forward-looking statements and as a
result undue reliance should not be placed on forward-looking
information. Additional risks and uncertainties can be found in the
company's reporting documents filed on SEDAR (www.sedar.com),
including its Management Discussion and Analysis and Annual
Information Form. Forward-looking statements are given only as at
the date of this press release and the company disclaims any
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Baja Mining Corp.Tom OgryzloInterim
CEO604-685-2323info@bajamining.com
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