Trading Symbol: ADA:TSX
HALIFAX, Feb. 22 /CNW/ - Acadian Mining Corporation ("Corporation" or "Acadian") (TSX: ADA) is pleased to announce that it has signed a binding Letter Agreement
with Selwyn Resources Ltd. ("Selwyn") whereby Selwyn would acquire the zinc and lead assets of Acadian for
a cash consideration of $10 million.
The sale will be consummated by Selwyn acquiring all of the issued and
outstanding shares of ScoZinc Limited ("ScoZinc") which holds all of the assets associated with the Scotia Mine located
in Nova Scotia ("Acquisition"). The sale price for ScoZinc is $10 million less certain deductions
related to increased bonding requirements for an amended reclamation
and closure plan for the Scotia Mine. Upon completion of the
Acquisition, Selwyn will own a 100% interest in the mine-mill complex
and an extensive mineral claims package.
The Acquisition is subject to the execution of a formal purchase and
sale agreement and the achievement of certain conditions precedent
prior to closing, including Selwyn being satisfied with the results of
an environmental audit of the Scotia Mine site by an independent
consulting group and Selwyn receiving an independent NI 43-101
Technical Report that confirms the Mineral Resources reported by
ScoZinc. The closing of the transaction is to occur on the 10th
business day after the parties have executed the purchase and sale
agreement, provided that all conditions precedent to the closing are in
place at that time, and if they are not, the closing is to occur at
such other time as is agreed to by the parties but by no later than May
Grant Ewing, President and C.E.O., stated, "Acadian is pleased that the
negotiations for the sale of its zinc and lead assets is progressing
smoothly. Following the sale of the Scotia Mine, Acadian will be
well-financed and focused on exploration and development of its
prospective gold portfolio in Nova Scotia".
About the Corporation
Acadian is a Halifax, Nova Scotia, Canada based company with five
advanced gold projects, all of which host National Instrument 43-101
compliant resources. The Corporation also owns barite properties on
Cape Breton Island, Nova Scotia and the Scotia Mine, which is currently
on care and maintenance. Acadian's primary focus is centered on
exploration and development of its gold deposits in Atlantic Canada.
No regulatory authority has approved or disapproved the contents of this
SOURCE ACADIAN MINING CORPORATION
For further information:
For additional information, please visit our web site at: www.acadianmining.com.
Grant Ewing, President and Chief Executive Officer
(902) 444-7779 Toll Free: (877) 444-7774
Halifax, Nova Scotia