TORONTO BREAKWATER RESOURCES has completed the acquisition of 100% of the shares of BOLIDEN WESTMIN (CANADA), the owner of the Myra Falls zinc/copper/gold/silver operation on Vancouver Island, B.C. Former owner, BOLIDEN AB, received 18 million voting shares of Breakwater and 5 million warrants.
As part of the deal, Breakwater will assume environmental liabilities of about $21.5 million for the site. However, Boliden must maintain the posted environmental letters of credit for one year, and then Breakwater is required to retire Boliden's obligation.
Existing proven and probable mineral reserves at Myra Falls are 7.7 million tonnes at 6.4% Zn, 1.2% Cu, 1.2 g/t Au and 40 g/t Ag. The tonnage is sufficient for at least seven years at the current rate of production. Breakwater believes there is a good possibility that existing mineral resources can be converted to reserves as well as the potential for new discoveries.
The Myra Falls concentrator has an annual capacity of 1.4 million tonnes/year that is supplied from two underground mines. In 2003 the operation produced 57,400 tonnes of zinc, 10,700 tonnes of copper, 27,300 oz of gold and 720,900 oz of silver.
For further information contact Breakwater president and CEO Colin Benner at 416-363-4798 ext. 269 or e-mail investorinfo@breakwater.ca.
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