Breakwater Resources Ltd.

Breakwater Resources Ltd.

December 20, 2010 17:01 ET

Breakwater Resources Announces Filing of Final Prospectus in Connection With Previously Announced $40 Million Bought Deal

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) -


Breakwater Resources Ltd. (TSX:BWR)(TSX:BWR.WT.A) announces that it has filed a final short form prospectus in connection with its previously announced $40 million bought deal public offering of 6,350,000 common shares with the securities regulatory authority in all provinces of Canada except Quebec and with the Toronto Stock Exchange.

The offering of common shares is subject to obtaining all required approvals and the satisfaction of all terms and conditions of the underwriting agreement of the Company with the underwriting syndicate, led by Dundee Securities Corporation and GMP Securities L.P., and including Canaccord Genuity Corp., Credit Suisse Securities (Canada), Inc., TD Securities Inc., Cormark Securities Inc. and Octagon Capital Corporation (the "Underwriters"). The offering is expected to close on or about December 30, 2010.

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 650,000 common shares at the issue price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering to cover over-allotments, if any, and for market stabilization purposes.

If the over-allotment option is fully exercised, the gross proceeds from the offering will be $44,100,000.

Further details of the offering, including the anticipated use of proceeds, are set out in the prospectus of the Company dated December 20, 2010 available on SEDAR at or from one of the members of the underwriting syndicate.

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 the Company's most recent Annual Information Form and its prospectus dated December 20, 2010 filed on SEDAR at 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