Baja Mining Corp.

Baja Mining Corp.

September 04, 2007 17:00 ET

Baja Signs Bridge Loan Agreement With Endeavour Mining Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - Baja Mining Corp. (the "Company") (TSX:BAJ) is pleased to announce it has entered into a bridge loan facility (the "Facility") with Endeavour Mining Capital Corp. ("Endeavour") for an aggregate principal amount of up to US$10 million to finance the purchase of long-lead order equipment required for the development of the Boleo Project, Baja California Sur, Mexico.

The Facility consists of a US$10 million non-revolving term facility that may be drawn down in four tranches of US$2.5 million on or before October 12, 2007. Funds borrowed will bear interest at a rate of 10% per annum. Any funds borrowed will be repaid from future financings. The Company paid a cash fee to Endeavour upon execution of the Facility. Endeavour will also be granted 1.5 million share purchase warrants entitling it to purchase an aggregate of 1.5 million common shares of the Company at an exercise price of $1.92 per common share for a period of one year from closing. The warrants will contain vesting provisions such that 375,000 warrants may be exercised for each US$2.5 million draw down made under the Facility. Unvested warrants may not be exercised, and will expire at the conclusion of their one year term. The issuance of the warrants is subject to the approval of the TSX.

The Company has completed a Definitive Feasibility Study (DFS) on its 100% owned Boleo Property, Baja California Sur, Mexico. The Company is well advanced in construction financing, with the assistance of its financial advisors, Endeavour Financial International Corporation, and will be proceeding to break ground for construction of El Boleo copper/cobalt/zinc/manganese project later this year.



Some of the statements contained in this release are forward-looking statements, such as statements that describe the Company's expected timing for commitment of construction financing and other statements. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements by their nature inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements. Material factors that could cause actual revenues to differ materially from those contained in such forwarding-looking statements include (i) fluctuations on the prices of copper, cobalt, zinc and manganese, (ii) interpretation of contract terms, (iii) accuracy of the Company's and consultants' projections, (iv) the Company's ability to finance, receive permits for, obtain equipment, construct and develop the El Boleo Project, (v) the effects of weather; operating hazards; adverse geological conditions and global warming, (vi) impact of availability of labor, materials and equipment; and (vii) changes in governmental laws, regulations, economic conditions or shifts in political attitudes or stability.

These forward-looking statements represent the Company's views as of the date of this release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statements.

Contact Information

  • Baja Mining Corp.
    John Greenslade
    (604) 685-2323
    (604) 629-5228 (FAX)