Baja Class Action Settlement Approved and Suit Dismissed
VANCOUVER, BC--(Marketwired - February 22, 2016) - Baja Mining Corp. ("Baja" or the "Company") (TSX VENTURE: BAJ) (OTCQB: BAJFF) is pleased to report that the previously disclosed settlement of the Donohue class action has been approved by the Ontario Superior Court of Justice and, as part of the settlement, the action has been dismissed.
In news releases dated October 6, 2015 and November 9, 2015, Baja announced the execution of a settlement agreement (the "Settlement") between the parties to the Donohue class action litigation (the "Action") providing among other things that the Action would be dismissed, no liability would be admitted, and the Settlement Amount would be $11,000,000, inclusive of administration and legal costs of the class, and of any other costs or expenses related to the Action or the Settlement. The Settlement Amount will be covered by Baja's insurers.
On February 19, 2016, the Ontario Superior Court of Justice approved the Settlement and dismissed the Action. The judge's reasons for decision will be released at a later date.
Tom Ogryzlo, Interim CEO, stated, "I am pleased to have the distraction caused by the class action litigation behind the Company at last. As I noted previously, the prospect of this final settlement has enabled us to focus on seeking opportunities for creating value for our shareholders." Mr. Ogryzlo added, "While these markets remain challenging, I believe that projects with the right characteristics can be funded and advanced. Our objective remains to preserve the Company's longer-term participation in the Boleo Project, through the development of a platform that will enable the Company to pursue projects with potential to generate short term cash flow."
The Company continues to evaluate the development of Cinto Colorado, including the potential capability to supply feed to the Boleo plant. The possibility of supplying concentrate feed to the Boleo process plant, which is currently underutilized, is currently being investigated. The Company has presented this concept to KORES and has engaged SNC-Lavalin to undertake a preliminary assessment of the installation and operation of an autoclave at Cinto Colorado to process copper sulfide concentrates with high levels of impurities as potential feed to the SX/EW circuits of the adjacent Boleo plant. Assuming positive results of the SNC-Lavalin study and the cooperation of KORES, the Company would expect to undertake a consolidation of its shares, a name change and a financing to recapitalize the Company's balance sheet and provide sufficient funds to support its development concepts.
Mr. Ogryzlo and Baja board director, Wolf Seidler, are currently returning from Boleo where they met with senior management of Minera y Metalúrgica del Boleo, S.A. P.I. de C.V. for an update on the activities at site, including performance of the process plant and commissioning of the cobalt and zinc circuits, and the underground mine. The Company will issue a further news release in due course to update its shareholders.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. 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.