BAJ: Got an email update from IR:
Baja Mining Provides Update on Cost Controls, Funding Search, Executive Change and Governance Advisor
Vancouver, April 25, 2012 – Baja Mining Corp. (TSX:BAJ – OTCQX: BAJFF) today provided an update on its cost control initiatives, the development of a funding plan, an executive change and a new governance advisor.
“We are responding quickly and effectively to control costs, finance projected cost overruns and improve management,” said Baja’s President and CEO John Greenslade. “Our objective is to continue to advance our Boleo Project so that copper production begins on schedule in the first half of 2013.”
Cost controls
Baja is taking action at its corporate office in Vancouver and at the Boleo project site in Mexico to effect more stringent cost controls. Baja is actively taking steps to conserve cash and manage the Company’s short-term cash flow.
As part of its effort to defer or reduce costs, Baja is reviewing alternatives for deferring some or all of the non-copper producing circuits at the Boleo Project to allow cost deferral and a focus on higher valued copper production. Baja is also reviewing all key roles in the company and will restructure as required.
All engineering, procurement and construction management activities are being centralized at the project site from Mexico City, including all project controls personnel. A third party engineering firm is being retained to critically review project management practices and systems. As further changes are made and additional controls are introduced, Baja will provide updates to shareholders.
Funding
Following Baja’s announcement of projected cost overruns on April 23, 2012, Baja received a number of offers from investment bankers to assist with financings. Baja’s funding objective remains to minimize dilution to shareholders.
As part of Baja’s review of funding alternatives for the Boleo Project, Baja’s senior management team is in discussions and meeting with lenders and lender representatives in North America this week and will travel to Korea next week to meet with the Korean syndicate of industrial companies that owns a 30 percent interest in the Boleo project.
Executive Changes
Dennis Bailey has been promoted to Vice President Construction and Development effective immediately. Mr. Bailey replaces Mike Shaw, who has resigned with immediate effect. Mr. Bailey takes over responsibility for engineering, construction, procurement and project management of the Boleo Project and its major contractors, including the construction schedule and budget.
Mr. Bailey was formerly Project Manager, a role he took on upon joining Baja in December 2010. Prior to Baja, Mr. Bailey was Director of Engineering Services for Golden Colorado-based Golden Minerals Company (formerly Apex Silver Mines Corporation) and its subsidiary Minera San Cristobal, where he was the Project Coordination Manager responsible for the completion of the engineering, procurement and construction phases of the San Cristobal mine in Bolivia. He was also responsible for the integration and coordination between the construction team, contractors and commissioning and operations groups. Mr. Bailey has also previously held senior positions with SNC Lavalin America and Newmont Mining. Mr. Bailey holds an MBA from the University of Colorado at Denver and a Bachelor of Science – Mechanical Engineering Technology from the Metropolitan State College, Denver.
Mr. Bailey will work closely with Chief Operating Officer Adam Wright and Vice President Operations Charles Hennessey, to control Project costs and improve management of the construction project from here to completion. The executive change, combined with the new third party reviews, will result in a much stronger control of Project and contractor costs, and be a key factor in achieving first copper production on schedule in the first half of 2013 and in-line with the revised budget.
Special Advisor to the Board
Baja has engaged Jonathan Drance, a senior partner in Stikeman Elliott LLP’s Vancouver office, as a special advisor to the Board to ensure the Company’s governance practices remain effective through this critical transition period.