Breakwater Resources Ltd.
TSX : BWR
TSX : BWR.WT.A

Breakwater Resources Ltd.

April 30, 2010 17:19 ET

Breakwater Resources Ltd. Announces One for Ten Share Consolidation

TORONTO, ONTARIO--(Marketwire - April 30, 2010) - Breakwater Resources Ltd. ("Breakwater" or the "Company") (TSX:BWR)(TSX:BWR.WT.A) announces a proposed consolidation of the issued and outstanding common shares in the capital of Breakwater (each, a "Common Share") on the basis of one post-consolidation Common Share for every 10 pre-consolidation Common Shares issued and outstanding (the "Share Consolidation"). Breakwater does not anticipate changing its name or trading symbol in connection with the Share Consolidation.

Breakwater will seek approval for the Share Consolidation at its annual and special meeting of shareholders currently scheduled for June 8, 2010 (the "Meeting"). Details of the proposed Share Consolidation are set forth in Breakwater's Management Information Circular which will be mailed to shareholders on or about May 11, 2010 and filed under the Company's profile on SEDAR at http://www.sedar.com.

The approximately 702 million Common Shares of the Company currently outstanding will be reduced to approximately 70.2 million Common Shares if the share consolidation is effected. No fractional Common Shares will be issued as a result of the Share Consolidation. If the Share Consolidation results in a shareholder holding a fractional interest of less than a whole Common Share, such fractional interest will be paid in cash in an amount equal to the number of Common Shares held by such holder multiplied by the weighted average price at which the Common Shares have traded on the TSX during the 20 consecutive trading days immediately prior to the date of the Meeting. The exercise price and the number of Common Shares issuable under any outstanding convertible securities of the Company, including outstanding incentive stock options and Common Share purchase warrants, will be proportionately adjusted if the share consolidation is effected. 

We anticipate that the Company's Common Shares will continue to be traded on the TSX under the symbol "BWR" on a post-consolidation basis, under a new CUSIP number yet to be assigned. Further, the Company's warrants will continue to be traded on the TSX under the symbol BWR.WT.A on a post-consolidation basis. The consolidation of the Company's shares is subject to receipt of shareholder approval as well as all necessary regulatory approvals, including that of the TSX. 

Breakwater is a mining, exploration and development company which produces and sells zinc, copper, lead and gold concentrates to customers around the world. The Company's concentrate production is derived from three mines in Chile, Honduras and Canada. Breakwater's Langlois mine in Québec, Canada is currently on temporary care and maintenance.

Forward-Looking Statements

This news release contains forward-looking statements regarding the proposed offering and the use of proceeds. The words "expect", "will", "intend" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by those forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: our financial condition and operations, market metal prices, current global financial conditions, and regulatory approvals. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the date of such statements, are inherently subject to significant business, economic, social, political and competitive uncertainties and contingencies. For additional information with respect to risks, uncertainties and assumptions, please also refer to the "Risk Factors" in Company's most recent Annual Information Form filed on SEDAR at www.sedar.com under the Company's profile. These forward-looking statements are made as of the date of this news release only and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

Contact Information

  • Breakwater Resources Ltd.
    Ann Wilkinson
    Vice-President, Investor Relations
    (416) 363-4798 Ext. 277