London Investor Given Serious Consideration for Baja Iron Projectadmin
Cotton & Western Mining, Inc. announced that the company’s Hong Kong credit facility through IBC Strategic is still in place; however, Robert L. Cotton, President & C.E.O., stated that, “Chinese investors are sitting on the fence waiting and watching the market. It is imperative that the company opens production this year in Baja, so we have opened negotiations with a London Group who has a strong interest in financing the Baja Iron Mining Project. Initial terms and conditions of a Debt & Equity Loan have been presented to CWRN, with the main reference points being a percentage of ownership in our Mexican subsidiary, Pan American Minerals Ventures, S.A. de C.V., together with a yet to be determined affiliate block of CWRN common shares.” The company is authorized 6,000,000,000 common shares and two affiliates, Pan American Mineral Ventures, LLC, (Nevada) and Emily Cotton of Houston hold just over 5,000,000,000 restricted shares with the free trading share count currently standing near 300,000,000 shares. The Board of Directors will meet on June 20, 2009 to review and discuss the London Investor’s options for the financing of the Baja Iron Mining Project.
Current FOB annual contract pricing is $45.00 per each Dry Metric Ton (DMT) shipped while one-off Spot Sales are nearing $68.00 CIF in main China ports. Cotton & Western is expected to open production at 52,000 DMT per month, which will be shipped from the Pacific Ocean Port of Ensenada, Baja California, Mexico.
Cotton & Western Mining recently projected revenues in excess of $126 Million based on an agreed base price of $45.00 FOB Mexico, per each dry metric ton sold on a guaranteed 64.5% Fe (iron content) with bonus payment of $0.6976 for each 1% Fe content above the minimum contract specifications. The average Fe content as tested in 2008 for Baja No. 14 is 67% Fe content.