Breakwater to sell 1.2 milion shares

Breakwater Resources has agreed to sell 1.2 million of its shares to Loewen Ondaatje McCutcheon and Company of Vancouver to raise $7.92 million.

These funds will be used to pay Cannon mine capital costs and to provide working capital. The Canon gold mine is located in Wenatchee, Wash.

This offering is a substitution for and not in addition to the funds to have been provided by the private placement announced last month, which Walwyn Stodgell Cochrane Murray were unable to complete.

Lowen Ondaatge McCutcheon will offer these shares to the public by way of prospectus to be filed in B.C. and Ontario. A preliminary prospectus is anticipated to be filed with the regulatory authorities during the first week of March.