Mining PRs and the Ottotrans™, part 60

It's that moment again, when we take the junior mining news release and explain the real message. This time it's back to our old friend, Baja Mining (BAJ.to) and today's offering:

This is what they wrote:

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - Baja Mining Corp. ("Baja") (BAJ.TO)(BAJFF) today announced that the lenders to its 70% owned subsidiary, Minera y Metalurgica del Boleo S.A. de C.V. ("MMB") have agreed to a 45-day standstill in relation to the Boleo Project financing.

The lenders agreed to refrain from exercising rights and remedies under the Boleo Project financing agreements until August 1, 2012 with respect to certain defaults and events of default that are currently outstanding or that may arise during the standstill period.

MMB recently made a US$21M cash call to its shareholders. Baja provided its 70% share (US$14.7M) and the Korean Consortium provided its 30% share (US$6.3M). This cash injection will enable MMB to continue its current level of critical path activities at the Boleo Project, including all contractors continuing to work on the copper circuits. Cash forecasts indicate that this level of effort can be maintained through August 1, 2012.

As a result of the standstill and the funding of MMB by its shareholders and with the support of lenders, project partners, financial advisors and vendors, Baja has additional time to identify and evaluate potential financing options and possible sources of funding. The Company's advisors, including SRK Consulting, continue to work to complete their due diligence on the Boleo Project, and BMO Capital Markets continues to actively canvass potential strategic and financial interested parties.

And this is what it means:

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - Baja Mining Corp. ("Baja") (BAJ.TO)(BAJFF) today announced that the lenders to its 70% owned subsidiary, Minera y Metalurgica del Boleo S.A. de C.V. ("MMB") have agreed to a 45-day standstill in relation to the Boleo Project financing.
The lenders agreed to refrain from exercising rights and remedies under the Boleo Project financing agreements until August 1, 2012 with respect to certain defaults and events of default that are currently outstanding or that may arise during the standstill period.
MMB recently made a US$21M cash call to its shareholders because we had that cash covered anyway.. Baja provided its 70% share (US$14.7M) and the Korean Consortium provided its 30% share (US$6.3M). This cash injection will enable MMB to continue its current level of critical path activities at the Boleo Project, including all contractors continuing to work on the copper circuits. Cash forecasts indicate that this level of effort can be maintained through August 1, 2012.
As a result of the standstill and the funding of MMB by its shareholders and with the support of lenders, project partners, financial advisors and vendors, Baja has additional time to identify and evaluate potential financing options and possible sources of funding. This process will begin tomorrow as soon as the AGM votes in the rule changes that will allow Mount Kellett to own more than 20% of the company and to allow the board of directors the opportunity to approve and issue preferential shares. Then right after that, expect the Mount Kellett run board of directors to run a lord-almighty dilutive financing that will leave you retail grunts out in the cold and tie up MK's executive control once and for all. The board of directors will then proceed to sue John Greenslade's scrawny ass. Company's advisors, including SRK Consulting, continue to work to complete their due diligence on the Boleo Project, and BMO Capital Markets continues to actively canvass potential strategic and financial interested parties.

dyodd