Marshall sells deposit to Breakwater Res.

Toronto-listed Marshall Minerals has sold its Restigouche base metal deposit near Bathurst, N.B., to Breakwater Resources (TSE) for $3.5 million.

Breakwater will issue 1.5 million common shares to Marshall and provide the company with an advance royalty on a quarterly basis, beginning Jan. 1, 1996. The royalty will be recoupable against future tonnage royalties, and against a variable tonnage royalty (based on the number of tonnes mined and the price of zinc).

Marshall has granted Breakwater the right, until June 30, 1996, to enter a joint-venture agreement with Marshall for the exploration of Marshall’s strategic land holdings surrounding the Restigouche deposit.

The Restigouche contains 2.1 million tons minable by open-pit methods and 550,000 tons by underground, for a total of 1.7 million tons grading 6.81% zinc and 5.38% lead, as well as 3.15 oz. silver and 0.032 oz. gold per tonne.