Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Breakaway Resources notes increase in Norilsk shareholding

Breakaway Resources (ASX: BRW) has noted that Norilsk Nickel Australia Ltd now holds a 29.49% stake in the company after receiving 74.4 million Breakaway shares.

The shares were received by Norilsk (formerly LionOre Australia Pty Ltd) after a five year $9 million converting note matured yesterday at an exercise price of $0.1210 per share.

The convertable note was issued pursuant an agreement dated 13 May 2006 and was approved by Breakaway shareholders on 12 July 2006.

Following this share issue, Breakaway will have 365.5 million shares and Norilsk's 29.49% interest amounts to 107,779,198 shares.

Norilsk is one of the world’s largest base and precious metal producers.

On August 16 Breakaway returned significant copper-gold results from an initial 10 hole drilling program at the Sandy Creek prospect within the Eloise Exploration Project - and the world class Cloncurry Mineral District - which did not disappoint.

The results included 10 metres at 2% copper and exhibit consistency of copper grades. Geological similarities to Sandy Creek appear strong which boost the likelihood of a substantial copper deposit. Mineralisation remains open both down-dip and along strike.