Baja Mining Receives Request for Arbitration from Louis Dreyfus
VANCOUVER, BRITISH COLUMBIA, May 25, 2012 (Menafn - MARKETWIRE via COMTEX) --Baja Mining Corp. (otcqx:BAJFF) announces that it hasbeen advised by Louis Dreyfus Commodities Metals Suisse, S.A.("LDCMS") that LDCMS has filed a Request for Arbitration with theLondon Court of International Arbitration pursuant to section 7.2 ofthe September 28, 2010 Convertible Cost Overrun Facility Agreementbetween Baja and LDCMS (the "COF"). In its Request for Arbitration,LDCMS seeks among other relief, a declaration that the COF isterminated and damages. The Company believes LDCMS's claims arewithout merit, and will defend the claims vigorously.
The COF is a US35 million equity cost overrun facility agreed towith LDCMS in the form of an irrevocable letter of credit. Should theCompany utilize this equity cost overrun facility, LDCMS will beissued common shares of the Company to the equivalent value of theamounts drawn under the facility, based on a value of Cdn1.10 percommon share, translated at the prevailing exchange rate.
Baja Mining Corp.
SOURCE: Baja Mining Corp.
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