Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 142,377,907
HALIFAX, June 16 /CNW/ - Acadian Mining Corporation (TSX:ADA) ("Acadian"
or the "Corporation") is pleased to announce that it has received approval
from the Toronto Stock Exchange to extend the expiry date of 1,285,875
outstanding unlisted broker unit warrants ("Broker Warrants") that were issued
in connection with the Corporation's March 2007 private placement. Each Broker
Warrant currently entitles the holder thereof to purchase one broker unit of
the Corporation, comprised of one fully paid and non-assessable common share
in the capital of the Corporation and one-quarter of one non-transferable
common share purchase warrant ("Underlying Warrant") at any time until
5:00 p.m. (Halifax time) on June 30, 2008 ("Expiry Date") at a purchase price
of Cdn$1.05. Each whole Underlying Warrant entitles the holder thereof to
purchase one additional common share of the Corporation at a purchase price of
Cdn$1.35. The Broker Warrants will be amended effective June 30, 2008 to
extend the Expiry Date of such Broker Warrants to July 21, 2008.
As announced on June 11, 2008 by Acadian's News Release 10-08, the plan
of arrangement ("Arrangement") involving Acadian and Annapolis Gold
Corporation ("Annapolis") was approved by Acadian's shareholders at Acadian's
annual and special meeting on June 9, 2008 and was approved by the Supreme
Court of Nova Scotia on June 10, 2008. The Arrangement is discussed in further
detail below. If the Arrangement is completed, then the exercise price of
Acadian's outstanding warrants, including the Broker Warrants, will be
adjusted pursuant to the contractual terms governing such warrants. Except for
the Expiry Date extension and exercise price adjustment, all provisions of the
Broker Warrants will remain the same. There are no insiders of the Corporation
who hold Broker Warrants.
Plan of Arrangement
The Arrangement will result in shareholders of Acadian receiving one
share of Annapolis for every four shares of Acadian they hold on the
"Effective Date". Annapolis will own all of Acadian's gold assets, including
Acadian's 50% interest in the Fifteen Mile Stream gold property and Acadian's
four advanced stage exploration properties (Beaver Dam, Tangier, Forest Hill
and Goldenville), which form the core holdings of the Scotia Goldfields
Acadian shareholders will continue to hold all the same number of Acadian
shares they owned before the Arrangement and Acadian will continue to own the
Scotia Mine operations together with all of the Corporation's extensive base
metal claim holdings including the Getty Deposit, the Smithfield Deposit
currently under option, the Eastville prospect, the Lake Ainslie
barite-fluorite deposits and its 44.42% interest in Royal Roads Corp.
(RRO-TSX-V). Acadian will continue to be managed by its existing management
team and Acadian will provide administrative and operational services to
Annapolis with such additional staff as may be required. The officers and
directors of Annapolis will initially be the same as those for Acadian.
The Arrangement remains subject to a number of conditions, including
receipt of certain regulatory approvals and raising equity. Assuming all
conditions are met and the Arrangement proceeds, it is anticipated that the
"Effective Date" will occur in late June, 2008. As announced in Acadian's News
Release 07-08 on May 26, 2008, Annapolis is presently proceeding with a
marketed private placement of units comprised of common shares and warrants of
Annapolis. The offering will close on the "Effective Date" of the Arrangement.
About the Corporation
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
The Scotia Mine operates as an open pit mine and is expected to produce
30,000 tonnes of high grade zinc concentrate and 12,000 tonnes of high grade
lead concentrate per year. See Acadian's News Release No. 16-06 dated July 17,
2006 for further details.
The Corporation is also focused on developing four advanced gold
properties, Beaver Dam, Tangier, Forest Hill and Goldenville. Each of the four
advanced properties host gold resources described in technical reports
prepared in compliance with National Instrument 43-101 ("NI 43-101") and are
available on www.sedar.com. A summary of gold resources for Goldenville,
Forest Hill and Tangier is provided in News Release No. 01-06 issued on
January 5, 2006, under the paragraph titled "About Acadian Gold". A summary of
gold resources for Beaver Dam is provided in News Release No 23-07 issued on
July 16, 2007. The Corporation also recently acquired a 50% interest in the
Fifteen Mile Stream property. A summary of gold resources for this property is
provided in News Release No. 08-08 issued on May 29, 2008 and a NI 43-101
report with respect to this property will be filed on SEDAR in the near
future. The Corporation is bringing a new approach to the development of Nova
Scotia gold deposits by pursuing a multiple mine, central processing, managing
and servicing strategy.
The Corporation holds a 44.42% equity interest in Royal Roads Corp.
("Royal Roads") (RRO-TSX-V). Royal Roads' principal asset is a 16,075 hectare
(approximately 32 km x 5 km) mineral property known as the Tulks North
property which is strategically located in the centre of the world-class
Buchans base metal camp in central Newfoundland, Canada. In addition, Royal
Roads holds a 26.4% equity interest in Buchans River Ltd. ("Buchans River")
(BUV-TSX-V), which also holds a highly prospective property portfolio in the
Buchans camp. Acadian's indirect interest in Buchans River is 11.7%.
Forward Looking Statement
Certain information regarding the Corporation 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 Corporation 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 Corporation cautions that actual performance will be affected by a number
of factors, many of which are beyond the Corporation's control, and that
future events and results may vary substantially from what the Corporation
currently foresees. Discussion of the various factors that may affect future
results is contained in the Corporation's Annual Information Form dated March
26, 2008 which is available at www.sedar.com. The Corporation's
forward-looking statements are expressly qualified in their entirety by this
For additional information on the Corporation's properties and
activities, please visit our web site at www.acadianmining.com. If you wish to
be added to the Corporation'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, email: firstname.lastname@example.org.
For further information:
For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President, (902) 444-7779, Toll Free: 877-444-7774,