With $36.4 million in working capital and its bank debt paid off, Breakwater Resources (TSE) has the financial clout for a major acquisition — and the target could be Asamera Inc.’s (TSE) minerals division.
After the annual meeting in Vancouver, Robert G. Hunter, chairman, confirmed that Breakwater has additional “financing lined up to make an offer,” and he noted it could include a combination of debt and a gold loan.
Asamera and Breakwater are joint venture partners in the Cannon mine property at Wenatchee, Wash., which last year produced 136,913 oz gold. Gulf Canada Resources, which recently took over Asamera, is rumored to be interested in selling Asamera Minerals, the company’s mining division. Hunter said that Breakwater has a right of first refusal on Asamera Minerals and he emphasized that Breakwater knew exactly what it was worth. “We would like an opportunity to open up discussions with Gulf,” he added.
Earnings for the quarter ended March 31 were $1.98 million compared to $1.2 million the previous year which Brian Pewsey, president, said was “attributable to stronger gold prices and income generated from investments.” Production from Breakwater’s 49%-owned Cannon mine totalled 37,285 oz of gold during the quarter, based on a throughput of 125,120 tons and a head grade of 0.33-oz gold. This was done at an operating cash cost per oz of $172(US).
Three separate mineralized areas have been discovered in the Wenatchee Heights area of the mine and Pewsey said the joint venture is deciding how to access these zones for exploration. The upcoming program could include underground development and diamond drilling from those mine workings.
Be the first to comment on "Breakwater says financing available for acquisition"