With the acquisition of all of the shares of Bathurst Base Metals, Breakwater Resources (TSE) has secured a 100% interest in the Caribou lead-zinc mine near Bathurst, N.B. Bathurst has amalgamated with a wholly owned subsidiary of Breakwater on the basis of one Breakwater share for every 3.75 shares of Bathurst. To date, Breakwater has issued a total of 4.5 million new shares, and has reserved another 1.1 million shares for future issue.
As part of the deal, the two companies have agreed to restructure the mine’s $30-million debt through two Australian banks. Until the debt has been repaid, 80% of the mine’s available cash flow will go toward principal and interest payments. Principal must be paid by April 30, 1996, and interest by April 30, 2000.
The Caribou mine contains proven reserves of 1.9 million tonnes grading 7.93% zinc and 3.58% lead. An additional 10 million tonnes with similar grades is listed in the probable and possible category. Breakwater has agreed to fund the development of the mine to completion.
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