Baja Mining Corp. Secures $823 Million in Funding for Boleo Project
Vancouver, Canada-based Baja Mining Corp. has announced that its 70% owned project company, Minera y Metalurgica del Boleo S.A. de C.V., has obtained confirmation from export credit agencies, the Korea Development Bank, and commercial lenders to secure $823 million in funding for the development of the Boleo project in Mexico. This funding will be the entirety of the debt financing required to develop the project. Baja Mining Corp. aims to close the transaction and recommence construction at Boleo as soon as possible.
Key Takeaways:
- Baja Mining Corp. has secured $823 million in funding for the Boleo project, the entirety of the debt financing required to develop the project.
- The funding will be provided by a group of export credit agencies, the Korea Development Bank, and commercial lenders.
- The project involves a 70% offtake arrangement with a major international trading entity.
- Baja Mining Corp. aims to close the transaction and recommence construction at Boleo as soon as possible.
- The Boleo project has a minimum scheduled mine life of 25 years and a NPV of $1.306 billion, using an eight percent discount rate.
- The project has an after-tax internal rate of return of 25.6% based on 100% equity.
- Baja Mining Corp. has secured $823 million in funding, which includes $100 million of loans from commercial lenders.
Statistics:
- Total credit approved for the project: $823 million
- Debt financing required for the project: $823 million
- Minimum scheduled mine life: 25 years
- NPV: $1.306 billion (using an 8% discount rate)
- After-tax internal rate of return: 25.6% (based on 100% equity)
- Loans from commercial lenders: $100 million ($50 million in senior project loans and $50 million in senior cost overrun loans)
Sources:
- Baja Mining Corp. press release, dated September 8, 2010
- Baja Mining Corp. website
- Comtex News Network, Inc. (SmarTrend Alert)