Baja Mining Receives Response from BCSC Regarding Baja’s Complaint Against Mount Kellett’s Trade Disclosure
(Via e-mail... )
Vancouver, March 6, 2012 – Baja Mining Corp. (TSX:BAJ - OTCQX: BAJFF) today announced that it has received a response from the British Columbia Securities Commission (the “BCSC”) following Baja’s complaint about Mount Kellett Master Fund II A LP and Mount Kellett Capital Management LP (together, “Mount Kellett”).
The BCSC letter, from Martin Eady, Director, Corporate Finance, states: “Based on our review of the letter and the related securities rules, in my opinion, there is insufficient evidence to pursue the complaint at this time.”
Baja filed its complaint with the BCSC on February 23, 2012. As Baja disclosed in a news release the same day, the complaint involved Mount Kellett’s failure to file early warning and insider trading reports last year after it acquired more than 10% of Baja’s shares. Instead Mount Kellett selected a less transparent form of disclosure known as the alternate monthly report.
In the complaint Baja expressed its concern that Mount Kellett’s disclosure practices disadvantaged Baja shareholders and that Mount Kellett, which was seeking control of Baja, should have been more transparent. Baja rebuffed Mount Kellett’s control initiatives because Mount Kellett was unwilling to offer a premium to all shareholders.
Mount Kellett has since launched a proxy contest to place two of its representatives, including its managing director Stephen Lehner, on Baja’s Board. Baja notes that Mount Kellett, which owns 19.9% of Baja, still has not filed any insider trading reports on SEDI.
Baja is disappointed that the BCSC has declined to deal with the substance of its concerns and is considering its options. Baja reaffirms its commitment to protect the interests of all shareholders.
Voting Instructions
Baja urges shareholders to vote only the GOLD proxy AGAINST Mount Kellett’s director removal resolution, and AGAINST Mount Kellett’s Board expansion resolution. Vote WITHHOLD for the two Mount Kellett nominees to the Board, Stephen Lehner (the managing director of Mount Kellett) and Lorie Waisberg. Shareholders should discard any blue proxy they may receive and should vote only their GOLD proxy well in advance of the proxy voting deadline of March 30, 2012 at 10:00 a.m. (Vancouver Time).
AI
