JOHANNESBURG (miningweekly.com) – Beleaguered TSX-listed Baja Mining has been advanced an additional $115-million by the Korea Resources Corporation (Kores) for the continued construction of its Boleo project, in Mexico.
The advance was made through Baja’s 49%-owned subsidiary Minera y Metalúrgica del Boleo (MMB) and was paired with an extension to the third standstill agreement, which expired on January 15.
The third extension to the pay freeze was subject to an $84-million cash injection to MMB by the Korean consortium, which took place on November 2 and initially extended the standstill agreement to November 20.
Last year, Mining Weekly Online reported that the Korean consortium also threw Baja a $90-million lifeline in July, following its announcement in April that it expected to exceed its initial $1.14-billion estimate to construct the Boleo copper, cobalt and zinc project by about $246-million.
The company said, in August, that it had received about $73.5-million of a total of $90-million of the Stage 1 financing agreement it entered into with Kores, triggering a reduction in its ownership of subsidiary MMB.
In October, it received a $20-million cash injection from the consortium.