Breakwater transfers Estrades to Arimetco

By transferring its Estrades polymetallic mine to Arimetco International (TSE), Breakwater Resources (TSE) will wipe out a $4.5-million debt owed to the latter company.

The transfer is one of the final steps in Breakwater’s financial restructuring, which was originally announced in September, 1993. Under the deal, Breakwater retains a 2% net smelter return royalty on the first 450,000 tonnes of production from Estrades, situated in northern Quebec; the royalty increases to 3% thereafter. The mine contains proven reserves of 472,852 tonnes grading 11.8% zinc, 0.75% copper, 1% lead, and 5.28 grams gold and 185.7 grams silver per tonne.

The deposit began production in July, 1990, at 700 tonnes per day but was closed about a year later in response to depressed metal prices.