Since the beginning of the year,
-- successfully settled the Louis Dreyfus actions (see
Bajanews release, January 24, 2014), substantially reducing the Company's ongoing legal expenses; -- agreed to convert, the Company's shareholder loans in MMB for equity in exchange for a reduction in the rate of interest on the MMB-KORES debt facility to 4% (see Bajanews release, April 2, 2014), which helped pave the way for the successful MMB bond issuance and early refinancing of the then remaining 2010 Project Financing facilities and KDB subordinated debt (see Bajanews release, May 13, 2014); -- reached agreement in principle with KORES on key matters having significant potential implications for the Company and its shareholders (see News Release, April 2, 2014), including: -- the determination of an MMB dividend policy to ensure that available funds are distributed to shareholders at the earliest possible time, after having satisfied prior debt service and principal repayment obligations; -- the restructuring of terms relating to the manganese production decision and manganese refundable deposit liability to avert a near- term insolvency risk by eliminating US$10,000,000from the Company's current liabilities; and -- establishing a framework for further dilution of the Company's ownership in MMB relating to future cash calls associated with the Boleo Project; -- voluntarily delisted its common shares from trading on the TSX and applied for and obtained a Tier 2 Listing on the TSX Venture Exchange, and filed a Form 15 with the United States Securities and Exchange Commissionto terminate the registration of its common shares under Section 12(g) of the Exchange Act and suspending its reporting obligations under Section 15(d), significantly reducing the Company's listing and compliance costs while maintaining a market for the Company's common shares; -- worked closely with its legal counsel to defend the class action law suit. Although the Ontario Superior Court of Justicehas certified the action as a class proceeding under the Ontario Class Proceedings Act, as against Bajaand the remaining individual defendants, the court granted leave to the plaintiff to proceed only with respect to statutory claims under s. 138.3 of the Ontario Securities Act and dismissed all other claims (see Bajanews release, April 29, 2014). It is expected that the narrowed scope of the class action may facilitate a less complex legal and court process, to the benefit of the Company and its stakeholders; -- assisted Cinto Colorado to confirm its legal rights to develop the tailings and slags located adjacent to the Boleo Project, and to obtain the support of the Municipio of Santa Rosalia, which will enable Cinto Colorado, together with Baja, to advance plans to evaluate development options, including the potential processing and/or sale of the tailings and slag for the benefit of Bajaand its shareholders. Baja'spreliminary due diligence review indicates the Cinto Colorado tailings and slag contain significant residual copper and cobalt that represents a potential low-risk, low-cost avenue to near-term cash flow; and -- with the removal of all security interests and pledges relating to the 2010 Project Financing senior facilities, Bajais now evaluating options for its Luxembourg subsidiaries with a view to simplifying the Company's legal structure and eliminating further operating costs.
Boleo Project Schedule Update
MMB has reported to
-- Piping and instrumentation construction schedules remain under pressure due to ongoing work force shortages; -- MMB is now targeting mechanical completion of the copper circuit by the end of
June 2014. First ore or hot commissioning is now expected to commence in early September, with October 1, 2014being the targeted date for first copper production; and -- Mechanical completion of the cobalt zinc circuits is now scheduled for the middle of August 2014due to lateness in delivery of certain equipment. Additionally, delays to the completion of the copper circuit are having a knock-on effect preventing the movement of crews to work on the construction of the back-end. First cobalt zinc production is now scheduled for November 1, 2014.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. Forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this press release are based on our current estimates, expectations and projections, which the Company believes are reasonable as of the current date. Actual results could differ materially from those anticipated or implied in the forward-looking statements and as a result undue reliance should not be placed on forward-looking statements. Additional risks and uncertainties can be found in the Company's reporting documents filed on SEDAR (www.sedar.com), including its Management Discussion and Analysis and Annual Information Form. Forward-looking statements are given only as at the date of this press release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.