RE: RE: RE: RE: RE: RE: Acesover What we have had so far on cost overruns is that Baja shareholders put up $90,000,000.00 and Kores made loans of $144,000,000.00. In total that is $234,000,000.00 put forward to cover cost overruns and the $50,000,000.00 cost over run facility was cancelled.
Stage One
Baja gave up 21% of Boleo in order to inject $90,000,000.00 into the project. In short, it was Baja shareholders who injected $90,000,000.00 into MMB and not the Korean Consortium because in essence the consortium simply exchanged one asset $90,000,000.00 for another asset, 21% of Boleo. The $90,000,000.00 when to MMB and not Baja. Baja shareholders got nothing for their 21% of Boleo.
That 21% the Korean Consortium received has increased in value because the NPV of Boleo has increased since the March 2010 economic assessement of Boleo was done. See my prior post.
Stage Two
Cost overrun funding was not done through equity raising as envisioned but through loans of $144,000,000.00 from Kores. See the 5 December 2012 news release.
Kores has taken over the $419 million project financing of which $115 million was recently advanced.
It was Mount Kellett who mwade the unrealistic prediction the SRK report would be issued within months by September 2012 and it was Mount Kellett who inflated how much the cost overrun would be when they got control of Baja. It was Mount Kellett who gave up 21% of Boleo to raise the $90,000,000.00 to inject into MMB.