Special meeting of Breakwater set for April 10

Shareholders of Breakwater Resources (TSE) will be meeting April 10 to consider various matters related to the company’s proposed debt restructuring.

Earlier this year, Breakwater management negotiated a restructuring of its Swiss Bonds and a restructuring agreement involving Arimetco International (TSE), Dundee Bancorp (TSE) and the Shipes group. These agreements are still subject to shareholder approval.

The initiatives are meant to restore Breakwater’s balance sheet which was adversely affected by an ambitious expansion program into zinc during a period when zinc prices declined. During this period, the company opened and then closed several polymetallic mines in Canada, because the operations were not profitable at then prevailing metal prices.

The company still owns a producing polymetallic (zinc) mine in Honduras and also has a 49% interest in the profitable Cannon gold mine in Washington state.

If the restructuring proposals receive shareholders’ and all other approvals, management of Breakwater would eventually pass from Dundee Bancorp to Arimetco.