Trading Symbol: ADA:TSX
HALIFAX, Feb. 24 /CNW/ - Acadian Mining Corporation ("Corporation" or "Acadian") (TSX: ADA) is pleased to announce that it has signed a Letter of Intent with
respect to a proposed investment in Acadian by China Metallurgical
Exploration Corp. ("CME") which will raise an initial $8.1 million with the potential to raise
a further $5.4 million if warrants are exercised.
Details of the proposed transaction are as follows:
CME will purchase, on a private placement basis, 18 million Units of
Acadian @ $0.45 per Unit.
Each Unit will be comprised on one common share and one-half of a
Each whole warrant will be exercisable by CME at a price of $0.60 for a
period of three years following the Closing Date in accordance with the
following schedule; one-third of the Warrants will vest and be
exercisable on the Closing Date, one-third will vest and be exercisable
on the first anniversary of the Closing Date, the remaining one-third
will vest and be exercisable on the second anniversary of the Closing
The board of directors of Acadian ("Board") will be reconstituted on the Closing Date and nominees of CME will be
added to the Board.
The private placement is subject to conditions precedent being met on or
before April 30, 2011, including completion of formal documentation,
regulatory approval and approval from the Government of China. The
private placement is also conditional upon completion of due diligence
to the satisfaction of CME.
Grant Ewing, President and CEO, stated, "Acadian is pleased to welcome
CME as a new strategic investor in the Corporation. The proceeds of the
private placement, together with the proceeds from the sale of
Acadian's wholly-owned subsidiary, ScoZinc Limited, which we recently
announced, will greatly assist Acadian in conducting an aggressive gold
exploration program over its vast and underexplored gold landholdings,
and ultimately in the creation of shareholder value".
Acadian is a Halifax, Nova Scotia, Canada based company with five
advanced gold projects, all of which host National Instrument 43-101
compliant resources totalling 626,000 indicated and 1,111,000 inferred
ounces of gold. 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.
China Metallurgical Exploration Corp. is a Canadian company owned by
Zhengyuan International Mining Co., Ltd. ("Zhengyuan"). Zhengyuan is a state-owned company under the China Metallurgy
Bureau, which is the largest Chinese exploration organization with more
than 30 thousand employees working in domestic and overseas operations
focused on the mineral exploration and development industry.
Richard Horne, M.Sc., P.Geo., Chief Geologist of Acadian Mining, is a
Qualified Person as that term is defined in National Instrument 43-101
and has reviewed and approved the technical information contained in
this news release.
For additional information, please visit our web site at: www.acadianmining.com.
No regulatory authority has approved or disapproved the contents of this
SOURCE ACADIAN MINING CORPORATION
For further information:
Grant Ewing, President and Chief Executive Officer
(902) 444-7779 Toll Free: (877) 444-7774
Halifax, Nova Scotia