Timeline valuations 1. When Mintec (MMB) was sold to Baja Mining Corp in April 2004, it was valued at CND $30 millions which is the amount which Mintec had spent on capital expenditures at the Boleo project. The initial (April 2004) BAJ share price was set at 75¢.
2. When the Korean Consortium bought 30% of Boleo on June 30, 2008 they paid US $103 million in cash for the 30%. This equates to US $343,333,333 for 100% of the Boleo project.
3. The remainder 70% of Boleo left for Baja Mining would be valued at $343.3 million less $103 million = US $240 millions (= 70% of Boleo).
4. When Mount Kellett bought 19.9% of Baja during 2011, it paid US $80 millions. This equates to US $402 millions for 100% of Baja (= 70% of Boleo).
5. Todays market capitalisation of Baja Mining Corp. is $1 x 339 million shares = CDN $339 millions. This equates to 70% ownership of the Boleo Project. The entire Boleo Project has a computed market capitalisation today of CND $484,285,714.
6. Although Mount Kellet bought 19.9% of Baja Mining Corp., it did not buy 19.9% of the Boleo Project. MK only has a 13.93% interest in MMB. I have never read the fine print on all the rights given to the Korean consortium notwithstanding the fact that MMB is the operator and that Baja is calling the shots as the senior partner. I wonder as I wander.
A piece of trivia. Did you know that the offtake agreement with Louis Dreyfus Commodities Metals Suisse SA stiputlates, in writing, that Louis Dreyfus cannot own more than 19,9% of Baja Mining Corp. common shares? This offtake agreement was announced on June 7, 2010. Louis Dreyfus agreed to it and signed it. This was a year before Mount Kellett clearly demonstrated that it ain't a Louis Dreyfus. This is the difference between day and night.
Doug.