TORONTO - Less than a day after announcing a $30-milllion bought deal, Breakwater Resources said it had increased the offering to $40 million. There is also an overallotment that, if fully exercised, will bring the total to $44.1 million. The net proceeds will be used for general corporate purposes including the restart of operations at the Langlois zinc-copper mine. Operations were suspended two years ago as the global economic meltdown spread.
The offering is underwritten by a syndicate of underwriters led by Dundee Securities and GMP Securities. Breakwater will issue 6.35 million common shares at a price of $6.40 per share. The deal is to close by Dec. 30, 2010.
The technical report dated Dec. 3, 2010, for the Langlois mine is posted at www.Breakwater.ca.