Breakwater Resources Ltd.

Breakwater Resources Ltd.

December 21, 2010 08:01 ET

Breakwater Resources Announces Underwriters' Notice of Exercise of Over-Allotment Option in Connection With $40 Million Bought Deal

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2010) -


Breakwater Resources Ltd. (TSX:BWR)(TSX:BWR.WT.A) announces that it has received notice from Dundee Securities Corporation and GMP Securities L.P., as co-lead underwriters, on behalf of the underwriters including Canaccord Genuity Corp., Credit Suisse Securities (Canada), Inc., TD Securities Inc., Cormark Securities Inc. and Octagon Capital Corporation (collectively, the "Underwriters"), of the exercise in full of the over-allotment option (the "Over-Allotment Option"), granted to the Underwriters by the Company in connection with the previously announced bought deal offering of $40 million.

Pursuant to the Over-Allotment Option, the Company will sell an additional 650,000 Common Shares at an issue price of $6.30 per Common Share for additional gross proceeds to the Company of $4,095,000. It is anticipated that the closing of the Over-Allotment Option will occur concurrently with the closing of the $40 million bought deal offering on or about December 30, 2010.

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