Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 153,402,907
HALIFAX, Jan. 20 /CNW/ - Acadian Mining Corporation (TSX: ADA)
("Acadian") announces that ScoZinc Limited, a wholly-owned subsidiary of
Acadian ("ScoZinc"), has received an extension to the stay period it had been
granted by an order ("Order") granted by the Supreme Court of Nova Scotia
("Court") on December 22, 2008 pursuant to the Companies' Creditors
Arrangement Act ("CCAA"). The Court approved an extension of ScoZinc's
creditor protection for an additional period expiring on March 20, 2009.
During this time, ScoZinc will continue to review the various alternatives for
the restructuring of its affairs with the goal of formulating a plan of
arrangement or compromise that will be acceptable to its creditors and to the
On January 20, 2009, the Court also granted an order temporarily lifting
the Order to the extent necessary to allow certain unsecured creditors of
ScoZinc to make file liens, commence actions and to file certificates of lis
pendens so as to perfect their claims against the lands of ScoZinc according
to the requirements of the Builders' Lien Act (Nova Scotia). As well, the
Order has been lifted to the extent necessary to allow certain unsecured
creditors of ScoZinc to commence an action to challenge the security granted
by ScoZinc in favour of Acadian and Royal Roads Corp. (TSXV: RRO). The
granting of these orders to lift the stay is not an adjudication on the merits
of the claims and ScoZinc reserves all of its defence rights in this regard.
ScoZinc consented to the temporary lifting of the stay, on the terms set out
in the orders relating to the above noted circumstances.
ScoZinc, with the concurrence of Grant Thornton Limited, the
court-appointed Monitor for the CCAA process, has initiated the planning
process to place the Scotia Mine on "care and maintenance" status with the
goal of accumulating cash reserves to enable it to implement a plan of
arrangement with its creditors and to preserve the value of its key assets.
This has been effected by significantly reducing mining operations with the
expectation that all mining will cease between January 31, 2009 and February
15, 2009 depending on metals prices, and ScoZinc will then continue to process
stockpiled ore until it is depleted, which is presently anticipated to occur
between February 15, 2009 and March 31, 2009. ScoZinc presently has 22
employees engaged in mining operations, 27 in milling operations, 6 employees
engaged in administrative and other activities, 8 employees engaged in
maintenance activities, and 4 security personnel, for a total workforce of 67.
The costs of operating the Scotia Mine facility have also been greatly reduced
by taking other steps; for example, eliminating certain burdensome
obligations, renegotiating certain agreements, effecting repairs on an "as
required" basis and using supplies from inventory reserves, steps ScoZinc
would not be in position to do were it not transitioning into care and
In addition, ScoZinc's cash position has been improved by the fact that
executive officers of Acadian and ScoZinc's VP level management team have
taken pay cuts ranging from 35% to 60%.
ScoZinc is planning to return to Court on February 24, 2009 to seek an
order with respect to the process by which creditors of ScoZinc may submit
Acadian holds the Scotia Mine zinc-lead asset through ScoZinc. Acadian's
gold assets are held in another subsidiary that is not affected by this
The materials filed to date in the CCAA proceedings are available on the
Monitor's website at www.grantthornton.ca under the Creditor Updates links.
About the Company
Acadian is a Halifax, Nova Scotia, Canada based mining company which
operates a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia and is
exploring and developing gold, zinc-lead, and barite properties in Atlantic
Forward Looking Statement
Certain information regarding the Company contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. The Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond the Company's control, and that future events and results
may vary substantially from what the Company currently foresees.
Discussion of the various factors that may affect future results is
contained in the Company's 2006 Annual Report which is available at
www.sedar.com. The Company's forward-looking statements are expressly
qualified in their entirety by this cautionary statement.
For additional information on the Company's properties and activities,
please visit our web site at www.acadianmining.com. If you wish to be added to
the Company's e-mail or fax distribution list for future news releases and
updates, please contact Acadian at phone: 902 444-7779, fax: 902 444-3296,
No regulatory authority has approved or disapproved the contents of this
For further information:
For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President, (902) 444-7779, Toll Free: 877-444-7774,