Tuesday, November 23, 2010

Investement in Baja

In this week's report, the CFB published term sheets for 55 new proposed placements from the mining, oil/gas (termed metals and energy in the report) and technology sectors. Of those, 44 were for mining stocks seven for oil/gas stocks, and four for technology stocks with the total value of new proposals reaching almost $453m. 11 of these placements were designated 'flow through' issuances and there were no new debenture offerings. The largest new public proposal was Baja Mining Corp. (BAJ.TO)(the Toronto exchange ticker!), which launched an offering consisting of 145.5m common shares priced at $1.10 in a placement led by Raymond James.
(so this might be a good deal with Natural Resources being where we need to invest!) and this:

Baja Mining Announces C$160 Million Cross-Border Bought Deal Financing

Baja Mining Corp. ("Baja" or the "Company") (CA:BAJ) (otcqx:BAJFF) today entered into an agreement with a syndicate of underwriters co-led by Raymond James Ltd. and Canaccord Genuity Corp. (collectively, the "Underwriters") under which the Underwriters have agreed to purchase 145,500,000 common shares (the "Common Shares") from the Company on a bought deal basis at a price of C$1.10 per Common Share for aggregate gross proceeds of approximately C$160,050,000

The Company plans to use the net proceeds received from the sale of the Common Shares to fund the equity component for the construction of the Boleo Project and for working capital and general corporate expenses. The Offering, once closed, will complete the total financing package for the development of the Boleo Project. The Offering is expected to close mid-November, and is subject to regulatory approval, including approval of the TSX.

The Company has granted to the Underwriters an option (the "Over-Allotment Option"), exercisable at any time until 30 days after closing of the Offering, to acquire, for the purpose of covering their over-allocation position, if any, up to an additional 21,825,000 Common Shares at a price of C$1.10 per Common Share. The Common Shares will be offered by way of a short form base shelf prospectus of the Company dated April 19, 2010 as supplemented by a preliminary prospectus supplement filed in the provinces of British Columbia, Alberta and Ontario pursuant to National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions, and in the United States pursuant to a preliminary prospectus supplement to the Company's effective shelf registration statement on Form F-10 filed with the United States Securities and Exchange Commission on April 19, 2010 under the Multi-Jurisdictional Disclosure System adopted in the United States and Canada. The Common Shares may also be offered in the other provinces and territories of Canada on a private placement basis and such other jurisdictions outside of Canada and the United States that are agreed to by the Company and the Underwriters.

Copies of the Canadian preliminary prospectus supplement are available at www.sedar.com, and copies of the U.S. preliminary prospectus supplement can be accessed through the SEC's website at www.sec.gov. Alternatively, a copy of the Canadian preliminary prospectus supplement and/or the U.S. preliminary prospectus supplement relating to the Offering can be obtained from Sara Minatel of Raymond James Ltd. by phoning her at (416) 777-4939 or emailing her at sara.minatel@raymondjames.ca.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there by any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Baja Mining Corp.

Baja Mining is a Vancouver, Canada-based publicly traded mine development company (CA:BAJ) (otcqx:BAJFF) with a 70% interest in the Boleo copper-cobalt-zinc-manganese Project located near Santa Rosalia, Baja California Sur, Mexico, targeted for copper commissioning in 2012. A Korean syndicate of industrial companies holds the remaining 30%. Baja is the project operator.



It's consolidating nicely after a substantula run up the last couple months. Looking like a good entry point now/soon.

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