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

Breakwater Resources Ltd.

March 17, 2010 08:14 ET

Breakwater Resources Announces Bought Deal Flow-Through Private Placement

TORONTO, ONTARIO--(Marketwire - March 17, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Breakwater Resources Ltd. ("Breakwater") (TSX:BWR)(TSX:BWR.WT.A) announces that it has entered into an agreement with Cormark Securities Inc. ("Cormark") and Dundee Securities Corporation ("Dundee") in respect of a "bought-deal" private placement financing of "flow-through" shares. The private placement will consist of 11,112,000 flow-through common shares at a price of $0.45 per flow-through share for gross proceeds of approximately $5.0 million.

The private placement is being co-led on a bought-deal basis by Cormark and Dundee as underwriters. The underwriters will receive a cash commission equal to 5.0% of the aggregate gross proceeds from the financing. The closing date is expected to be on or about April 1, 2010.

Completion of the private placement is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX.

The net proceeds from the sale of flow-through common shares will be used to fund exploration activities on Breakwater's properties in the province of Quebec.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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