TORONTO, Sept. 11 /CNW/ - Breakwater Resources Ltd.
("Breakwater")(TSX-BWR) and Virginia Mines Inc. ("Virginia")(TSX-VGQ) are
pleased to announce the signing of an amendment to the Coulon JV Project
Agreement pursuant to which Virginia optioned to Breakwater the Fontanges Sud
and Coulon Pitaval properties, located to the south and to the north of the
Coulon JV property respectively. With this amendment, the Fontanges Sud and
Coulon Pitaval properties are now merged with the Coulon JV property, thus
bringing the surface area of the new property to over 1600 km(2).
Following the recent staking of 1,981 new claims and the addition of the
Fontanges Sud and Coulon Pitaval properties, the new Coulon JV (the "Coulon
JV") property now consists of more than 3,250 claims and covers the Coulon
volcanic belt over more than 90 km.
Pursuant to this new agreement, Breakwater has the option to acquire a
50% interest in the new Coulon JV property in exchange for CA$7.5M (formerly
$6.5M) in exploration expenditures over a 9-year period (formerly 8 years) and
payments totalling $180,000 over a 4-year period. Virginia will remain the
operator until the completion of a pre-feasibility study.
George Pirie, President and CEO of Breakwater said, "We are very pleased
to be working in partnership with Virginia to develop one of Quebec's most
Breakwater is a mining, exploration and development company which
produces and sells zinc, copper, lead and gold concentrates to customers
around the world. The Company's concentrate production is derived from the
Langlois and Myra Falls mines located in Canada, the Toqui mine located in
Chile and the Mochito mine located in Honduras.
Virginia is among the most active mining exploration companies in Quebec
with a working capital of $48,042,904 as of May 31, 2007 and 26,443,198 shares
issued and outstanding as of August 31, 2007. Virginia concentrates its
activities on its numerous properties that are spread over the vast unexplored
regions of northern Quebec.
Certain information included in this press release, including any
information as to our future financial or operating performance and other
statements that express management's expectation or estimates of future
performance, constitute forward-looking statements". The words "expect",
"will", "intend", "estimate" and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. The Company cautions the reader that such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements
of Breakwater to be materially different from the Company's estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other factors
include, but are not limited to, risks associated with the mining industry
such as government regulation, environmental and reclamation risks, title
disputes or claims, success of mining activities, future commodity prices,
costs of production, possible variation in ore reserves, resources, grade or
recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes, the timing of estimated future
production, capital expenditures, financial market fluctuations, requirements
for additional capital, conclusions of economic evaluations, limitations on
insurance coverage, risks associated with using third-party contractors,
inflation as well as those factors discussed in the Company's most recent Form
40-F/Annual Information Form on file with the US Securities and Exchange
Commission and Canadian provincial securities regulatory authorities.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise, except as required by applicable law.
For further information:
For further information: Torben Jensen, Vice President, Engineering,
(416) 363-4798 Ext. 232; Ann Wilkinson, Vice President, Investor Relations,
(416) 363-4798 Ext. 277