VANCOUVER Mount Kellett Capital Management is renewing efforts to have its nominees join the board of Baja Mining Corp. and force the resignation of chief executive John Greenslade.
The investment manager tried and failed to have two nominees join the Baja board earlier this year. But since the vote, the company announced costs at its Boleo project will be more than 20 per cent higher than expected.
Three directors have also resigned from the Baja board of directors.
Mount Kellett, which holds a 19.9 per cent stake in the company, had accused the board and management of Baja Mining of failing to represent shareholders.
The firm said Thursday that Tom Ogryzlo and Wolf Seidler, who resigned from the Baja board, have agreed to join a reconstituted board that would also include Mount Kellett managing director Stephen Lehner and Lorie Waisberg, a corporate director.
Mount Kellett said it also recognizes the right of Louis Dreyfus Commodities Metals Suisse SA, which holds a 9.8 per cent stake in Baja, to representation on the board and is prepared to support its nominee.
Ogryzlo has also agreed to serve as interim chief executive, while a search for a permanent replacement is conducted, if Greenslade resigns.
Baja declined to comment on Mount Kellets latest moves.
Mr. Greenslade is working to find a funding solution that will best benefit all shareholders, the company said in a statement.
Baja has accused Mount Kellett of a creeping takeover of the company, something the investment firm has denied.
