Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Sept. 3 /CNW Telbec/ - Blue Note Mining is pleased to report
that Breakwater Resources has exercised its right pursuant to the terms of the
Unsecured Subordinated Convertible Debenture issued by Blue Note dated
August 1, 2006 to convert the Debenture in exchange for a twenty percent (20%)
interest in the mineral properties and mine facilities which comprise the
Caribou and Restigouche mines in New Brunswick now owned by Blue Note's
subsidiary, Blue Note Caribou Mines Inc.
Having the Debenture surrendered by Breakwater, Blue Note Caribou Mines
and Breakwater are now contractually obligated to enter into a joint venture
agreement which releases Blue Note and Blue Note Caribou Mines from all
liability under the Debenture.
"We feel that this decision validates everything we always have believed
about the Caribou mines," said Michael Judson, President and Chief Executive
Officer of Blue Note Mining, "it is a high quality asset, and Breakwater
understands its value."
"The opportunity to work with one of Canada's leading mid-tier mining
operators is welcomed by Blue Note," said Mr. Judson. Blue Note believes that
this action will be seen positively by the financial community and will be
beneficial to all Blue Note shareholders. Mr. Judson said he believes that
Breakwater's decision also reinforces Blue Note's view that commodity prices
will increase in value.
The Caribou mine declared commercial production on the first of January,
2008 and has produced more than 42,000 tonnes of zinc concentrate and
26,000 tonnes of lead concentrate at the end of June metallurgical performance
has exceeded all expectations.
In other news, the company reports that John Martin has resigned from the
Board of Directors. Mr. Martin is and will continue to serve as the company's
Chief Operating Officer. "John did a great job as a Director and we thank him
for his contributions at that level," said Michael Judson, "The reality is in
this new corporate governance environment, there should be only one manager on
a company's Board."
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on the
TSX under the symbol BN.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Glenn Massad, Director of communications, Blue
Note Mining, (800) 937-3095, email@example.com; www.bluenotemining.ca