Sep 13 2012
Baja Mining Corp.’s alleged “misrepresentation” leads to forced resignation of CEO
The following linked articles involve a local Vancouver corporation’s (Baja Mining Corp.) alleged misrepresentation of increased costs for its Boleo mining project near Santa Rosalia, Mexico. In April of 2012, the company’s stock plummetted over 31% after news of a $246-million cost increase was announced. The announcement was made shortly after a contested proxy battle was narrowly won by the existing management/directors over a new slate of directors proposed by the company’s largest shareholder. The central ethical issue concerned is whether or not the management team deliberately withheld crucial negative information in an attempt to maintain their current position at the time.