Nyrstar to Acquire Breakwater Resources for $636m

16 June 2011 (Last Updated June 16th, 2011 18:30)

Nyrstar has entered into a binding agreement with Breakwater Resources to acquire all of the issued and outstanding shares of Breakwater via a friendly takeover bid for a total value of C$619m (US$636m). The assets of Breakwater comprise of four zinc poly-metallic mines, including El Toq

Nyrstar has entered into a binding agreement with Breakwater Resources to acquire all of the issued and outstanding shares of Breakwater via a friendly takeover bid for a total value of C$619m (US$636m).

The assets of Breakwater comprise of four zinc poly-metallic mines, including El Toqui in Chile, El Mochito in Honduras, and Myra Falls and Langlois in Canada.

Currently all the operations have an annual production capacity of about 140,000t of zinc, 14,000t of lead, 6,000t of copper, 2.3Mozt of silver and 40,000Mozt of gold.

The acquisition will significantly increase Nyrstar's level of zinc production from 31% to 43%, assuming all mining operations reach full production by the end of 2012.