Class action filed against Baja Mining over alleged misrepresentations

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VANCOUVER - Baja Mining Corp. (TSX:BAJ) says it has been slapped with another lawsuit claiming the company made misrepresentations.

The Vancouver-based miner said Friday shareholder Joseph Sue-Tang has filed a class-action lawsuit claiming the company and some of its current and former directors and employees made misrepresentations from November 2010 to April 2012.

The suit, which has not yet been certified, seeks $250 million in damages and $10 million in punitive damages, interest and costs.

Baja says it is reviewing the claim and will defend itself against the action.

None of the claims have been tested in court.

The suit follows another launched last month by one of its largest shareholders, Louis Dreyfus Commodities Metals Suisse which is demanding an independent investigation into cost overruns at its Boleo project.

The company's shares fell 31 per cent, or 2.5 cents, to 5.5 cents Friday on the Toronto Stock Exchange.

Shares in Baja Mining have plunged since April after the company said the Boleo project would cost US$246 million more than an earlier estimate of $1.143 billion.

The announcement came just weeks after the company narrowly defeated an attempt by a dissident shareholder to make changes to Baja's board.

Baja, which owns a 70 per cent stake in Boleo, attributed the increase to a variety of pressures including change of scope, design improvements and higher costs for steel and fuel.

The company was caught up in a proxy fight earlier this year with Mount Kellet Capital Management, its largest shareholder.

Though Mount Kellet lost a shareholder vote, two directors nominated by the firm eventually joined the Baja board of directors.

Organizations: Baja Mining Corp., TSX, Louis Dreyfus Commodities Metals Suisse Toronto Stock Exchange Mount Kellet Capital Management

Geographic location: Baja, VANCOUVER

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