As a result of recent cost overruns, Baja Mining Corp. (TSX: T.BAJ, Stock Forum) says the capital cost for its flagship Boleo project in Mexico could be as high as US$1.7 billion.
The company said in a press release that the estimate includes delays and contingencies that could add another US$50 million to the previous cost overrun estimate of US$400 million.
Baja says its funding requirement, representing 70% of the total overrun, can be estimated in the range of US$245 million to US$315 million.
In May, Baja retained BMO Capital Markets to help it consider financing options. Since then, 17 non-disclosure agreements have been signed and interested parties were granted access to the data room and attended management presentations, the company said.
Due diligence is expected to be completed in July and indicative proposals are anticipated to be received shortly thereafter.
Trading at 21.5 cents on Friday, Baja has a market cap of $73.1 million, based on 340.2 million shares outstanding. The 52-week range is $1.28 and 15 cents.