Breakwater Resources Ltd.
TSX : BWR

Breakwater Resources Ltd.

September 11, 2007 08:00 ET

Breakwater and Virginia Amend Coulon JV Agreement

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2007) -

Attention Business Editors:

Breakwater Resources Ltd. ("Breakwater")(TSX:BWR) and Virginia Mines Inc. ("Virginia")(TSX:VGQ) are pleased to announce the signing of an amendment to the Coulon JV Project Agreement pursuant to which Virginia optioned to Breakwater the Fontanges Sud and Coulon Pitaval properties, located to the south and to the north of the Coulon JV property respectively. With this amendment, the Fontanges Sud and Coulon Pitaval properties are now merged with the Coulon JV property, thus bringing the surface area of the new property to over 1600 km(2).

Following the recent staking of 1,981 new claims and the addition of the Fontanges Sud and Coulon Pitaval properties, the new Coulon JV (the "Coulon JV") property now consists of more than 3,250 claims and covers the Coulon volcanic belt over more than 90 km.

Pursuant to this new agreement, Breakwater has the option to acquire a 50% interest in the new Coulon JV property in exchange for CA$7.5M (formerly $6.5M) in exploration expenditures over a 9-year period (formerly 8 years) and payments totalling $180,000 over a 4-year period. Virginia will remain the operator until the completion of a pre-feasibility study.

George Pirie, President and CEO of Breakwater said, "We are very pleased to be working in partnership with Virginia to develop one of Quebec's most promising areas."

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 the Langlois and Myra Falls mines located in Canada, the Toqui mine located in Chile and the Mochito mine located in Honduras.

Virginia is among the most active mining exploration companies in Quebec with a working capital of $48,042,904 as of May 31, 2007 and 26,443,198 shares issued and outstanding as of August 31, 2007. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

Certain information included in this press release, including any information as to our future financial or operating performance and other statements that express management's expectation or estimates of future performance, constitute forward-looking statements". The words "expect", "will", "intend", "estimate" 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 that may cause the actual results, performance or achievements of Breakwater to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to, risks associated with the mining industry such as government regulation, environmental and reclamation risks, title disputes or claims, success of mining activities, future commodity prices, costs of production, possible variation in ore reserves, resources, grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, the timing of estimated future production, capital expenditures, financial market fluctuations, requirements for additional capital, conclusions of economic evaluations, limitations on insurance coverage, risks associated with using third-party contractors, inflation as well as those factors discussed in the Company's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact Information

  • Breakwater Resources Ltd. Torben Jensen Vice President, Engineering (416) 363-4798 Ext. 232
    or
    Breakwater Resources Ltd. Ann Wilkinson Vice President, Investor Relations (416) 363-4798 Ext. 277