Mount Kellett Capital Management LP (“Mount Kellett”) today sent the following open letter to the shareholders of Baja Mining Corp. (TSX: BAJ) (OTCQX: BAJFF) (“Baja”) urging them to vote their BLUE proxy FOR the addition of both of Mount Kellett’s nominees to Baja’s board of directors at the Special Meeting of Shareholders to be held on April 3, 2012. Shareholders can find more information and voting instructions at www.ShareholdersForBaja.com.
Dear Fellow Shareholders,
As owners of Baja, we are all looking forward to the potential of the Boleo project and a rewarding future for the company. It is the reason we have invested alongside you. From the outset, we have tried to work with the company and board to better secure this future. What we did not know at the outset, but what has been proven time and again, is that the current board is self-interested and many of its actions have been entirely inconsistent with its fiduciary duty to shareholders.
We urge all shareholders to consider the following questions:1. Why does Baja fear truly independent directors? 2. Why has Baja resorted to a web of baseless hypotheticals to try and distract shareholders? 3. Why did the company only react to highlighted governance deficiencies once put in the spotlight? 4. Why wouldn’t the board benefit from the experience and insights of truly independent directors that are committed to working with the other board members and to guiding management? The only motive for initiating this election is our desire to protect the investment and interests of all shareholders. By electing Lorie Waisberg, an experienced and well-regarded corporate director, and Stephen Lehner, an experienced sector investor with strong financial acumen and an “owner-driven mindset”, to the Baja board, there will finally be the opportunity to:
- Pre-emptively stop self-dealing at the board
- Enforce proactive versus “reactive” corporate governance
- Assure policies are permanent and adhered to in practice
- Provide accountability to shareholders and prevent value destruction