Baja Mining Corp (BAJ.TO) is up 8% at midday to 13.5 cents, its highest level in three months, with more than 2.6 million shares changing hands.
Baja Mining reports that the lenders to its 49% owned company, Minera y Metalurgica del Boleo S.A. de C.V. (MMB) have agreed to two further extensions to the standstill agreement of August 7, 2012 until November 20, 2012.
The second extension to the agreement expired on October 22, 2012 and required an advance of US$20 million to MMB by the Korean Consortium, which amount was previously advanced.
The third extension was subject to a US$84 million cash injection to MMB by the Korean Consortium which has already been advanced.
The recently advanced funds and the extensions will allow construction of the Boleo project to continue until November 20, 2012.
In addition, Baja reports that the Korean Consortium is actively engaging the lenders in a renegotiation of the original project financing in an effort to partially re-activate the loan facilities by November 20, 2012.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
