Mount Kellett Comments on the Critical Situation at Baja Mining
?Demands Public Disclosure of Report on the Boleo Project Cost
Overruns
? ? ? ? ?Calls for Resignation of CEO John Greenslade
? ? ? ?Proposes Reconstitution of Board of Directors
? ? ? ? ?Stands Ready to Assist Company with Needed Financing Following
Due Diligence
Mount Kellett Capital Management LP ('Mount Kellett?) today filed an
amended Schedule 13D with the Securities and Exchange Commission and
provided comment on the recent announcements by Baja Mining Corp. (TSX:
BAJ) (OTCQX: BAJFF) ('Baja?) concerning both the projected $246 million
cost overrun for the Company′s Boleo project (or a total of $438 million
after exhausting existing contingency and cost overrun facilities of
$192 million) and the resignation of four of the Company′s seven
directors a mere three weeks following the Company′s April 3, 2012
special meeting of shareholders.
'We demand the immediate public release of the ICA Fluor report and
related materials on cost overruns at the Boleo project. It is critical
that all shareholders better understand the predicament that Baja faces
to make an informed judgment on their investment.
'In addition, John Greenslade should immediately resign as a director
and officer of Baja. Due to his actions a tremendous amount of
shareholder value has been destroyed. Mr. Greenslade has operated the
company as a personal fiefdom with no regard for proper disclosure or
good governance and the huge decline in the Company′s stock price is a
consequence. Having lost the support, and received the resignations, of
six independent directors in just the last twelve months, it is
undeniable that shareholders require immediate and credible management
of their company.
'We also call for the immediate reconstitution of the Board of Directors
to include Messrs. Lorie Waisberg and Stephen Lehner, the two
independent director candidates previously nominated by Mount Kellett,
and to add two experienced independent directors satisfactory to Mount
Kellett and other significant shareholders. This action is imperative as
we believe that the remaining members of the board, or any directors
that may be appointed to the board by Mr. Greenslade to fill current
vacancies, will be too conflicted to make the critical decisions that
will be required to be made on behalf of shareholders in the coming
weeks. We believe that shareholders are at substantial risk that the
current Board may pursue transactions that are highly dilutive to
shareholders or that are not in the shareholders long-term, best
interests.
'Even with the recent devastating news, we believe that the Boleo
project represents substantial value for all Baja shareholders. We are
prepared to protect our investment, and the investments of all current
shareholders, by providing financial support to Baja, either alone or in
conjunction with other investors, following standard due diligence. To
date, Mr. Greenslade has denied our efforts to assist the company and
enter into due diligence and negotiations despite the urgency of the
situation.
'Shareholders are the true owners of Baja and it′s time to put aside the
defence of management and renew a focus on governance and the execution
of fiduciary duties on behalf of shareholders needed to save this
company and its valuable copper project. Mount Kellett is prepared to
take all such actions that may be necessary to protect its interests and
those of its fellow shareholders.?
About Mount Kellett Capital Management LP
Mount Kellett is a multi-strategy private investment firm focused on
global value, special situations and opportunistic investing. The firm
has approximately 100 employees with offices in New York, Hong Kong,
London, and Mumbai. The firm currently has in excess of $7 billion in
assets under management.
Sard Verbinnen & Co
Dan Gagnier/Sarah Brown, 212-687-8080
