LONDON, Jul 27, 2011 (Dow Jones) -- Belgian zinc producer Nyrstar NV (NYR.BT) has extended the expiry time of its offer to acquire Canada-based Breakwater Resources Ltd. (BWR) by an additional four weeks in order to seek the required regulatory approvals, it said Wednesday.
The offer--part of a C$663 million deal with Breakwater which will create the world's fifth largest miner of zinc--has now been extended from July 29 to Aug. 25.
"The extension of the offer is due to the regulatory approval process and related review periods of the requisite competition authority filings, and the approval required under the Investment Canada Act," Nyrstar said. "All submissions have been made and are being reviewed by the relevant authorities in the normal course," it added.
The two companies are working closely with each of the regulatory authorities and no issues have been raised, Nyrstar noted, with all approvals expected to be completed before the offer expires.
Nyrstar will buy Breakwater's mining operations, significantly increasing its level of zinc integration and increasing production from mines as a percentage of smelter production from 31% to 43%.
"The Breakwater acquisition is in line with our strategy to selectively pursue opportunities in mining, and presents an exciting opportunity to get within striking distance of our medium-term zinc integration target of 50%," said company chief executive Roland Junck.
Breakwater's operations consist of four zinc poly-metallic mines, spread across Chile, Honduras and Canada with a combined annual production capacity of around 140,000 metric tons of zinc concentrate, 14,000 tons of lead in concentrate, 6,000 tons of copper in concentrate, 2.3 million troy ounces of silver, and 40,000 troy ounces of gold.