Breakwater Resources Ltd.

Breakwater Resources Ltd.

March 25, 2008 07:01 ET

Breakwater Exercises Right of Purchase Under Myra Falls Mine Limited Partnership

TORONTO, ONTARIO--(Marketwire - March 25, 2008) - Breakwater Resources Ltd. (TSX:BWR) has exercised its right to purchase the interests of the limited and general partners of the Myra Falls Mine Limited Partnership (MFML Partnership) for approximately $18 million (90.9% of the $20 million contribution to the Qualifying Environmental Trust (QET)). Breakwater has elected to purchase the interest by issuing 13,518,739 common shares of Breakwater at $1.3448 which, pursuant to the agreement, is the 20-day weighted average trading price of Breakwater's common shares on the Toronto Stock Exchange the day before the exercise of the right.

Pursuant to the joint venture entered into with the limited partners of the MFML Partnership in December 2007, the MFML Partnership was entitled to a 3% net smelter royalty from the Myra Falls mine. The MFML Partnership deposited $20 million with a trustee into a QET as security for a portion of the reclamation obligations of NVI Mining Ltd., a wholly-owned subsidiary of Breakwater, which owns the Myra Falls mine.

The common shares of Breakwater to be issued as part of the exercise of its rights are not freely tradeable until April 21, 2008.

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 four mines. Two of Breakwater's mines are located in Canada, one is located in Chile and one is located in Honduras.

Contact Information

  • Breakwater Resources Ltd.
    Dave Langille
    Vice President, Finance and Chief Financial Officer
    (416) 363-4798 Ext. 236
    Breakwater Resources Ltd.
    Ann Wilkinson
    Vice President, Investor Relations
    (416) 363-4798 Ext. 277