Mount Kellett Petitions British Columbia Supreme Court to Appoint Independent Inspector of Baja Mining
May 04 2012 - 7:33PM
Business Wire
Mount Kellett Capital Management LP (“Mount Kellett”), today
disclosed that it has filed a petition with the Supreme Court of
British Columbia (the “Court”) requesting the appointment of Ernst
& Young Inc. (“Ernst & Young”) as an independent inspector
of Baja Mining Corp. (TSX: BAJ) (OTCQX: BAJFF) (“Baja”). The
petition also seeks an order directing Baja not to postpone its
annual general meeting scheduled for June 21, 2012 (the “AGM”).
Another shareholder, NorTrust Nominees Limited a/c GU149, is also a
petitioner in the action.
In particular, Mount Kellett is asking the Court to empower
Ernst & Young to investigate and produce a report for the
Court, available to all Baja shareholders in advance of the AGM,
upon the following critical questions:
- What are the actual projected cost
overruns in respect of the Boleo copper-cobalt-zinc-manganese mine
project and have they been reported accurately to
shareholders?
- From October 1, 2011 onwards, what did
senior management know about the escalation of the projected cost
overruns?
According to the petition, Mount Kellett has reasonable grounds
to believe that management was aware of substantial cost overruns
at least as early as January 2012.
Jonathan Fiorello, Chief Operating Officer of Mount Kellett,
said, “There are too many unanswered questions about Baja’s
business and operations for shareholders to make an informed
investment decision.”
Added Fiorello, “On behalf of all Baja shareholders, we are
petitioning the court to appoint an independent inspector mandated
with producing a report on the Boleo project and the timeline of
internal disclosures leading up to Baja’s announcement of the cost
overruns on April 23, 2012. We are also requesting the court order
the company to hold its annual general meeting at the set date of
June 21, 2012, so that shareholders will have a near-term
opportunity to vote on the leadership and future of Baja.”
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.