21/10/2013 - 15:47

Minotaur acquires Breakaway

21/10/2013 - 15:47

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Minotaur acquires Breakaway
Minotaur Exploration managing director Andrew Woskett

Adelaide-based company Minotaur Exploration has acquired 91 per cent of Perth-based Breakaway Resources in an off-market takeover.

The iron ore and base metal resources company's offer exchanged one of its ordinary shares for 10 ordinary shares in copper and gold explorer Breakaway.

In July, Minotaur said it had agreed on a takeover offer for Breakaway and had established two joint ventures with an unnamed private equity fund to explore two of the Perth explorer's tenements.

Minotaur said the completion of the acquisition now meant the joint ventures could begin providing up to $3 million to explore Breakaway's Leinster tenement in WA and up to $6 million at its Eloise tenement in Queensland.

The compulsory acquisition of outstanding holdings is expected to be completed within six weeks, at which point Breakaway will be removed from the ASX.

Breakaway directors Victor Rajasooriar, John Young and Jeff Gresham have tendered their resignations from the board as part of the pre-bid agreement struck in July.

Breakaway's new three-member board will be made up of existing chairman John Atkins, and Minotaur representatives Andrew Woskett and Tony Belperio.

Mr Atkins will also join Minotaur's board as a director.

In July, Mr Atkins said the acquisition provided shareholders with the opportunity to become part of a larger exploration group.

He said the current challenging market for junior explorers had made it virtually impossible to raise capital without combining with another company.

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