Breaker defers PFS after ‘unsolicited’ approaches
7 October 2019
Breaker Resources has again said it’s been contacted by corporates potentially interested in doing a deal and as a result it’s now deferring a prefeasibility study due to be completed this month as it undertakes a strategic review assisted by Azure Capital.
The deferral continues a run of missed deadlines for the junior at its Lake Roe gold exploration play east of Kalgoorlie. While the PFS due this month is being deferred, the company said the review “also
aims to lay a platform for a significant step-up in drilling activities to increase the current 1 million ounce resource which is open in all directions”.
The review comes with the stock trading this week at 52-week lows and against the backdrop of a superb gold price. Breaker is estimated to currently have a little over $2 million cash, with a call of 19c
per share being made las month on 4.6 million partly-paid shares. Breaker’s last placement was in May when $6.3 million was raised by issuing new shares priced at 30c each.
Shares in Breaker were up 12.3%% to 32c in afternoon trade, capitalising the company at nearly $67 million. Just over two years ago the stock was trading above 70c.