Zinc producer Breakwater Resources (TSE) reports that its previously announced rights offering has been fully subscribed.
Proceeds, prior to expenses, were $23.9 million. About $15.5 million will be used to retire debt, with the balance added to working capital. Two of the largest subscribers were Dundee Bancorp (TSE) and investment dealer Canaccord Capital, which contributed $8.6 million and $6.8 million respectively.
The offering completes the financial restructuring begun by Breakwater in 1993.
Breakwater owns the producing El Mochito zinc mine in Honduras and the past-producing Caribou zinc mine in New Brunswick, which is closed pending higher metal prices. It also owns 46 base metal and gold exploration properties in Canada and Honduras.
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