Sale of ScoZinc - Technical Due Diligence Completed Satisfactorily and Closing Due by May 31, 2011

Trading Symbol: ADA:TSX

HALIFAX, May 9 /CNW/ - Acadian Mining Corporation ("Corporation" or "Acadian") (TSX: ADA) advises that Selwyn Resources Ltd. ("Selwyn") has confirmed that it has completed its technical due diligence activities to its satisfaction and that the parties have agreed to extend to May 31, 2011 the deadline to complete the transaction involving the acquisition by Selwyn of the zinc and lead assets of Acadian for a cash consideration of $10 million.

On February 22, 2011, Acadian announced that it had signed a binding letter with Selwyn whereby Selwyn will acquire 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 the mine-mill complex and an extensive mineral claims package.

The binding letter agreement provides that the Acquisition is subject to the execution of a formal purchase and sale agreement and the achievement of certain conditions precedent prior to closing, which is to be no later than May 8, 2011.  The parties have agreed to extend this deadline to May 31, 2011.

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.

For additional information on Acadian's properties and activities, please visit our web site at:
www.acadianmining.com.

No regulatory authority has approved or disapproved the contents of this news release.

 

SOURCE ACADIAN MINING CORPORATION

For further information:

Grant Ewing, President and Chief Executive Officer
(902) 444-7779  Toll Free: (877) 444-7774
mail@acadianmining.com
Halifax, Nova Scotia

Profil de l'entreprise

ACADIAN MINING CORPORATION

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