hot copper -primed to go

Copper Royalties to Commence for Breakaway

Breakaway project locations


Base metals explorer, Breakaway Resources Ltd expects to accrue the company’s first copper royalty payments from the Eloise Copper Mine in Queensland, in the current September 2005 quarter.

The royalty arises as a result of Breakaway’s decision to retain a 30% net profit royalty when it sold the mine to Barminco Investments Pty Ltd in February 2004.

The commencement of the royalty coincides with the formal completion this quarter of the company’s major restructuring program. This has positioned the now cashed-up Breakaway as 100% owner of the Miranda and Kambalda West nickel projects, both in Western Australia, the Eloise royalty stream and 100% ownership of more than 300sqkm of prospective copper and base metal tenements around the Eloise Copper Mine.

The exploration tenements retained by Breakaway around the Eloise Copper Mine cover several major structural corridors along the eastern margin of the Mt Isa Block - one of the world’s most prolific base metal provinces.

“The royalty payments are a significant cash development for Breakaway and its shareholders and reflect the continuing strong market conditions for copper over the past 6-12 months,” Breakaway’s Managing Director, Mike Mulroney, said.

“With this underlying cash flow, combined with the $3.5 million investment in our company by LionOre Australia Ltd under the recently approved converting note issue, Breakaway is well placed as a junior company to aggressively advance its existing projects at Miranda, Kambalda West and Eloise while retaining the financial capacity to pursue new growth opportunities,” he said.

- 23 Sep 2005