The recent settlement of all amounts owed to Arimetco International (TSE) by Breakwater Resources (TSE) will result in the cancellation of receivables totaling about $5 million.
In return for canceling the obligations, Arimetco will receive all of Breakwater’s 70% interest in the Estrades mine in Quebec and a 100% interest in Barbados-based Trans-Oceanic Trading. As well, Breakwater will be responsible for resolving all debt issues with Westpac Bank pertaining to East West Caribou.
Breakwater retains a 2% net smelter return on the first 450,000 tonnes of production from Estrades, increasing to 3% thereafter.
Estrades contains proven reserves of about 450,000 tonnes grading 11.8% zinc, 0.8% copper and 6.8 grams gold per tonne.
The mine, 30% owned by Brookline Minerals (VSE), originally went into production in July, 1990, at 700 tonnes per day. Ore was custom-milled in the Abitibi area.
However, a shutdown occurred in June, 1991.
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