Breakaway finalises LionOre nickel asset acquisition

Breakaway Resources Ltd has finalised its acquisition of LionOre Australia Ltd's nickel assets, and will commence exploration across its entire portfolio shortly.

The acquisition cost Breakaway $10.55 million, satisfied by a placement to LionOre of 4.8 million shares and converting notes with a face value of $9 million.

The transaction with LionOre has also seen 15.56 million Breakaway shares issued to LionOre following the conversion of existing converting notes with a face value of $3.5 million. Following completion of the transaction, LionOre holds a 19.8% relevant interest in Breakaway.

Breakaway acquired LionOre's nickel projects in the Kambalda - Mt Keith-Leinster Ni belt, the East Kimberley, Mt Isa's Eloise base metals project and a 30 per cent royalty stream from the Eloise mine.

Breakaway chief executive Peter Buck said the acquisition represented an exciting time for the company, and would enable them to step up their exploration activity.