With recent purchases of more than three million shares and an agreement to buy an additional 10 million shares, Corona (TSE) is increasing its stake in Breakwater Resources (TSE) to 27.6%. In a separate deal, Breakwater is set to take over Bathurst Base Metals, owner of the Caribou lead-zinc mine, in a 1-for-3.75-share exchange deal. Caribou is estimated to contain proven reserves of 1.9 million tons grading 1.93% zinc and 3.58% lead.
Corona holds about three million shares of Bathurst, and also has the option to convert a debenture valued at $2.5 million to Bathurst shares.
If the Bathurst-Breakwater deal holds up, and Corona converts its debenture on or before Nov. 30, Corona will increase its interest in Breakwater to 28.4%, representing 18.7 million shares.
According to Corona, it has acquired these additional shares for “investment purposes” and intends to purchase an even more substantial interest in Breakwater in the future.
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