Breakwater Resources (TSE) has completed the purchase of 3.2 million shares or 19.9% of the issued capital of Noramco Mining (TSE) for an aggregate consideration of $20.8 million. Of that amount, $6 million was paid in cash and the remainder in Breakwater shares.
Breakwater President Brian G. Pewsey, said the purchase was for “investment purposes and Breakwater has not made any decision with regard to further acquisitions of shares of Noramco.”
Pewsey has been appointed to the board of Noramco and he will also act as chairman; Pierre Lassonde, a Breakwater director, has also joined the board. R. A. Bruce McDonald and Gordon A. Keevil have resigned from the board of Noramco but McDonald will join the board of Breakwater.
Breakwater has a strong operations group which should be of great benefit to Noramco, which has been experiencing operational difficulties at its Golden Rose mine. Noramco has several properties with production potential including the Pickle Crow, Zahavy, and Estrades, all of which could be in production by 1990.
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