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Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (933)	11/27/2003 11:35:52 PM
From: Stephen O	Read Replies (1) \| Respond to of 962

Breakwater Reaches Agreement with Lenders - Paves way for 2003-11-27 13:45 (New York) release of Funds Escrowed in October Financing TORONTO, Nov. 27 /CNW/ - BREAKWATER RESOURCES LTD. (TSX - BWR) is very pleased to announce that it has reached an agreement with its banking syndicate and Dundee Bancorp Inc. ("Dundee") which satisfies the escrow conditions of the financing completed in October. The $30.0 million financing completed in October resulted in the issue of 85.8 million subscription receipts, at a price of $0.35 per subscription receipt, for gross proceeds of approximately $30.0 million. The proceeds of the financing were deposited with a trustee on behalf of the subscription receipt holders. As a condition of the financing it was agreed that upon satisfaction of certain escrow conditions relating to the Company's indebtedness the proceeds would be released to Breakwater and each subscription receipt would be exchanged for one common share of Breakwater. The agreement reached with the banking syndicate provides that: - Breakwater will pay down 50% of the non-revolving facility of US$17.6 million and supplemental term facility of US$6.5 million on a pari passu basis; - The lenders will extend the balance of the non-revolving facility and the supplemental term facility for a period of five years to January 2, 2009; - Principal under the non-revolving and supplemental facilities will be repaid in equal monthly payments beginning in July, 2004; and - The lenders will also maintain the existing revolving facility with a new maximum of US$25 million down from US$30 million. The interest rate on the non-revolving facility and the supplemental term facility will remain at LIBOR plus 2.75%. Dundee has agreed to extend its letter of credit supporting the supplemental term facility which indebtedness reduces to US$3.25 million. C. K. Benner, President and CEO noted that, "The completion of this agreement with the lenders to extend Breakwater's non-revolving facilities for a five year period allows management to renew Breakwater's pursuit of growth which will be accretive to shareholder value. Mr. Benner stated that, "I am confident opportunities for growth exist both internally and externally and that the Company has the bench strength to identify value in the marketplace." This news release contains forward-looking statements. When used in this news release the words "anticipate", "believe", "intend", "estimate", "plans", "projects", "expect", "will", "budget", "could", "may", and similar expressions are intended to identify forward-looking statements.