Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 153,495,907
HALIFAX, April 1 /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian"
or the "Company") announced its year end financial results for the year ended
December 31, 2008. Complete financial statements and management's discussion
and analysis of results are available on the regulatory filing site
www.sedar.com and the Company's website www.acadianmining.com and should be
read in conjunction with this news release.
The Company recorded a net loss of $37,474,297 which included a loss from
operations of $12,392,371 and an impairment charge principally on its
zinc-lead assets of $24,740,000.
The rapid and deep decline in metal prices, particularly after November
1, 2008, coupled with the Company's failure to rapidly implement its cost
reduction - increased production program at Scotia Mine during Q4-08, resulted
in Q4-08 revenues decreasing to $4,099,811 from $8,697,156 in Q3-08. This
large decline in revenues combined with unfavourable forecasts for base metal
prices in at least the first half of 2009 and the inability to raise capital
through debt or equity due to the collapse in the world credit markets,
resulted in severe financial constraints in Acadian's wholly owned subsidiary,
ScoZinc Limited ("ScoZinc"). The cumulative result of these negative factors
led ScoZinc to seek creditor protection pursuant to the Companies' Creditors
Arrangement Act ("CCAA") (news releases December 23, 2008, January 20, 2009
and March 20, 2009), and a decision to place Scotia Mine on care and
maintenance (news release February 11, 2009).
The Company recently announced (news release March 17, 2009) that it has
reached agreement with Golden River Resources Corporation ("Golden River") to
complete a private placement of up to 338,111,334 common shares ("Offering")
for aggregate gross proceeds to Acadian of up to Cdn$10 million. The Offering
is contemplated to close in two or more tranches.
The closing of the first tranche, for an aggregate of Cdn$1.0 million
(38,111,334 shares at $0.026 per share) is subject only to receipt of the
required regulatory approvals, including the approval of the Toronto Stock
Exchange and is expected to occur in one or more closings on or about April
10, 2009. Upon completion of closing of the initial tranche, Golden River will
be entitled to nominate one member to the board of directors of Acadian. The
remaining Cdn$9.0 million of the Offering (300,000,000 shares at Cdn$0.03 per
share) will close in one or more tranches upon the receipt of all necessary
regulatory approvals, approval of the shareholders of Acadian and the
satisfaction of certain other conditions precedent, including satisfactory
resolution of ScoZinc's CCAA proceedings, completion of due diligence by
Golden River and the acquisition by the Company of the remaining 50% of the
Fifteen Mile Stream mineral claims for a cash payment of $70,000, a
non-interest bearing note payable for $1.0 million due one year from the date
of acquisition and a 1% nsr to G. William Felderhof, President of the Company,
and members of his family.
The proceeds of the Offering are to be used by Acadian for operational
overheads, the advancement of Acadian's gold properties and the discharge of
ScoZinc's creditors all in accordance with a plan and budget to be approved by
Acadian is a Halifax, Nova Scotia, Canada based mining company that owns
a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia which is currently
being placed on care and maintenance, and is exploring and developing gold,
zinc-lead, and barite properties in Atlantic Canada.
Forward Looking Statement
Certain information regarding Acadian 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 Acadian 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. Acadian cautions that
actual performance will be affected by a number of factors, many of which are
beyond Acadian's control, and that future events and results may vary
substantially from what Acadian currently foresees. Discussion of the various
factors that may affect future results is contained in Acadian's Annual
Information Form dated March 31, 2009, which is available at www.sedar.com.
Acadian's forward-looking statements are expressly qualified in their entirety
by this cautionary statement.
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
For further information:
For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President, (902) 444-7779, Toll Free: (877) 444-7774,