Breakaway Resources
Limited (ASX: BRW)
ASX
RELEASE
23 SEPTEMBER 2008
BREAKAWAY ANNOUNCES A$2M SHARE
PLACEMENT TO
CORNERSTONE INVESTOR
MELBOURNE-BASED
INVESTOR SUPPORTS NICKEL & BASE METAL DEVELOPMENT STRATEGY
KEY POINTS
? Share placement
comprising 10M shares to be undertaken to Abbotsleigh Pty Ltd.
? Share placement to be
completed by 29 September 2008.
? Abbotsleigh to hold
fully diluted stake of 5.6%.
? Funds raised to be used
to progress ongoing nickel and base metal exploration programmes in Western
Australia and Queensland.
Breakaway Resources Limited (ASX: BRW ? ?Breakaway?) is pleased
to announce that it has reached agreement to undertake a strategic share
placement to raise a minimum of A$2 million to Abbotsleigh Pty Ltd
(Abbotsleigh?), a mining investment company associated with Melbourne-based
businessman, Mr Ian Gandel.
The placement, which
comprises 10 million shares at a price of 20 cents, is being under taken
pursuant to the ?excluded offer ?provisions (section 708) of the Corporations
Act.
Following completion
of the share placement, Abbotsleigh will have a fully diluted stake of 5.6% Mr
Gandel has a record of investing in the mid-tier and junior resource sector
with significant holdings in a number of emerging resource companies including
Alliance Resources Limited and Alkane Resources Limited. Mr Gandel commented
that he based his investment decision on his confidence in Breakaway?s quality
nickel and base metal assets and its experienced and successful management
team. He has also expressed an interest in considering an increase to his
shareholding in the future.
The share placement
represents a notable achievement in the current market environment, providing a
significant capital injection and bringing another strategic industry player
onto Breakaway?s register.
The proceeds from the
placement will boost Breakaway?s existing cash reserves which will be used to
further progress Breakaway?s nickel and base metal exploration programmes in
Western Australia Queensland, including:
? West Kambalda ?
further evaluate the historical 1A and Andrews mines where recent drilling has
successfully defined down-plunge extensions to both deposits.
? Wildara Project ?
further evaluate the recently discovered Horn nickel deposits, as well as a
series of new targets in close proximity and along strike of the deposit and;
? Eloise Regional ?
base metal exploration on Breakaway?s 100% owned tenements, adjoining the
Eloise Copper Mine in which Breakaway owns a 30% Net Profit Royalty interest.
Commenting on the announcement, Breakaway?s Managing Director, Mr Peter
Buck, said: ?This capital raising represents another important milestone in our
development and a significant achievement considering the current market
circumstances. We welcome Abbotsleigh as a strategic investor, which represents
a strong endorsement of the quality of Breakaway?s assets and of our strategic
vision to develop a significant resource company?.
?The funds raised will assist the progression of our exploration
programmes,? Mr Buck said. ?We have had several recent exploration successes
which require evaluation in the short term, to formulate the future strategy
and build on those successes".
?The agreement with Abbotsleigh secures an immediate cash injection.
This will dovetail well with the expected re-commencement of royalty earnings ?
in mid-calendar 2009 ? from our 30% net profit interest in the Eloise Copper
Mine in Queensland,
ensuring ongoing funding for the Company over the next 12 months".
ENDS
For further information contact:
Mr Peter Buck
Managing Director
Breakaway Resources Limited
Mobile:
0411 554 099
Business: (08) 9278
6444
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