STOCKHOLM, Sweden, July 8, 2004 (PRIMEZONE) -- Boliden and listed Canadian mining company Breakwater Resources Ltd. (Breakwater) have signed a final transfer agreement whereby Boliden is selling its wholly owned Canadian subsidiary, Boliden Westmin (Canada) Limited (BWCL), which owns the mine at Myra Falls. Boliden is to receive 18 million newly issued Breakwater shares whose market value corresponds to around SEK 42 million.
"Following Boliden's deal with Outokumpu, the sale of Myra Falls is a logical development that will allow us to concentrate all our management resources on integrating the acquired mining and smelting operations into the new Boliden," says Jan Johansson, President and CEO of Boliden.
In addition to the shares, Boliden will also receive 5 million options with a redemption price of CAD 1.00 and a term ending on 27 January 2009. Boliden is expected to make a small capital gain on the sale that is due to be reported during the third quarter of 2004. Jan Johansson will be elected to the board of Breakwater. Boliden's current guarantees to the authorities in British Columbia regarding Myra Falls will remain in force for a period of one year.
Boliden is one of the world's leading mining and smelting companies with operating facilities in Sweden, Finland, Norway, Ireland and Canada. Boliden mainly produces copper, zinc and lead, as well as gold and silver. Other important operations include mineral exploration and metal recycling. The company has around 4,900 employees and net sales of almost SEK 15 billion. Its shares are listed on Stockholmsborsen's O-list and on the Toronto Stock Exchange in Canada.
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