Acadian pursues asset sales and seeks strategic partner to develop advanced gold properties - Acadian announces change of date for Court application for Claims procedure for ScoZinc and agrees to release security granted by ScoZinc



    Trading Symbol: ADA:TSX; C2Z-Frankfurt
    Shares Outstanding: 153,402,907

    HALIFAX, Feb. 11 /CNW/ -Acadian Mining Corporation (TSX: ADA) ("Acadian")
announces that the date previously fixed by the Nova Scotia Supreme Court
("Court") for the application for an order ("Claims Order") approving a
procedure for the identification and quantification of claims against its
wholly-owned subsidiary, ScoZinc Limited ("ScoZinc"), pursuant to the
Companies Creditor Arrangement Act ("CCAA") has been changed from February 24,
2009 to February 18, 2009. The Claims Order, if granted, will govern the
procedures for all persons with any claims of any kind or nature whatsoever
against ScoZinc. Acadian also announces that it intends to release the
security granted to it by ScoZinc to secure the $21.8 million owing to Acadian
by ScoZinc in an effort to assist in the structuring of a plan of arrangement
or compromise which will be acceptable to the creditors of ScoZinc and to the
Court pursuant to the CCAA proceedings. Acadian will assert a claim as an
unsecured creditor of ScoZinc for the purposes of the CCAA proceedings.
    Acadian holds its interest in the Scotia Mine, a zinc-lead mine located
at Gays River, Nova Scotia, through ScoZinc. On December 22, 2008, the Court
granted ScoZinc a creditor protection order pursuant to the CCAA. Pursuant to
the order, as amended, ScoZinc was granted creditor protection until March 20,
2009. This protection may be further extended at the discretion of the Court.
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
Court.
    By orders dated December 22, 2008 and December 31, 2008, the Court
authorized ScoZinc to borrow up to $1 million and to provide security
therefore, which security would have a priority charge and security interest
in all of the property of ScoZinc. On January 20, 2009, the Court also granted
certain creditors of ScoZinc an order temporarily lifting the stay order to
permit them to commence an action to challenge the security granted by ScoZinc
to Acadian and to Royal Roads Corp. (TSXV:RRO).
    Acadian intends to release the security granted to it by ScoZinc Limited
in November 2008 as security granted for the funds advanced by Acadian to
develop the Scotia Mine (approximately $21.8 million). Royal Roads has also
agreed to release the security granted by ScoZinc to Royal Roads in November
2008 as security for the $2.3 million advanced by Royal Roads to Acadian and
ScoZinc ("Royal Roads Loan"). This will assist ScoZinc in formulating a plan
of arrangement or compromise that will be acceptable to its creditors and to
the Court under the CCAA proceedings. Both Acadian and Royal Roads will assert
claims as unsecured creditors of ScoZinc for the purposes of the CCAA
proceedings. The Royal Roads Loan will remain secured by all of Acadian's
other assets, including its five advanced gold projects.
    ScoZinc, with the concurrence of Grant Thornton Limited, the
Court-appointed monitor for the CCAA process, has initiated the process to
place the Scotia Mine on "care and maintenance" status to preserve the value
of its key assets while it works with Acadian to formulate a plan of
arrangement or compromise for consideration by ScoZinc's creditors. At this
time, it is anticipated that ScoZinc will cease mining operations shortly and
that the processing of zinc and lead concentrates will terminate in mid to
late March. Notwithstanding its cost-cutting efforts, it is anticipated that
ScoZinc may not have accumulated surplus cash when it ceases milling
operations. If this is the case, the mill will be readied for long-term shut
down rather than care and maintenance.
    In order to fund a plan of arrangement or compromise, ScoZinc is actively
seeking a purchaser for the Scotia Mine. In addition, Acadian is pursuing
several avenues to raise the capital required for ScoZinc's plan of
arrangement and to fund Acadian's ongoing operations. These include the sale
of assets and a relationship with a strategic partner interested in developing
Acadian's advanced gold projects utilizing the Scotia Mill as a central gold
processing facility. Acadian has near term production potential on several of
its gold holdings and only minor modifications are required to convert the
Scotia Mill from base metals to gold. The Scotia Mill, which has the capacity
to treat in excess of 3,000 tpd (grinding at 100 mesh), represents an
attractive opportunity given the significant capital cost savings which would
result when combined with the potential to bring one or more of Acadian's gold
properties into production. Proposals by interested third parties in this
regard are welcome and enquiries should be directed to Acadian at the contact
details below.

    The table below identifies Acadian's 5 advanced gold projects and the
gold resources attributable to each:

    
    Gold Resources
    -------------------------------------------------------------------------
                                                         Cut(xx)
    -------------------------------------------------------------------------
                     Lower
     Property      Cut-off    Category       Tonnes(*)  Grade     Ounces(*)
    -------------------------------------------------------------------------
                             Indicated    9,080,000      1.53    446,000
    Beaver Dam    0.30 g/t  -------------------------------------------------
                              Inferred   10,400,000      1.51    504,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fifteen Mile
    Stream(xxx)    0.7 g/t    Inferred    3,800,000      1.66    202,000(xxx)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated      225,000     14.91    108,000
    Forest Hill       3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      383,000     11.93    147,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated      134,000      9.67     42,000
    Tangier           3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      271,000     12.08    105,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated       63,000     14.72     30,000
    Goldenville       3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      385,000     12.38    153,000
    -------------------------------------------------------------------------
    TOTAL -                                Indicated             626,000
                                                              ----------
                                                              ----------
    5 Properties                            Inferred           1,011,000
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                         Uncut
    -------------------------------------------------------------------------
                     Lower
     Property      Cut-off    Category       Tonnes(*)  Grade     Ounces(*)
    -------------------------------------------------------------------------
                             Indicated    9,090,000      2.01    589,000
    Beaver Dam    0.30 g/t  -------------------------------------------------
                              Inferred   10,370,000      2.16    720,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fifteen Mile
    Stream(xxx)    0.7 g/t    Inferred    3,800,000      1.66    202,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated      225,000     24.02    174,000
    Forest Hill       3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      383,000     12.42    153,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated      134,000      9.67     42,000
    Tangier           3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      271,000     15.09    130,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             Indicated       63,000     16.62     33,000
    Goldenville       3.50  -------------------------------------------------
                 g/t/1.20m    Inferred      385,000     18.78    232,000
    -------------------------------------------------------------------------
    TOTAL -                                Indicated             838,000
                                                              ----------
                                                              ----------
    5 Properties                            Inferred           1,437,000
    -------------------------------------------------------------------------

    (*)   Rounded
    NR No. 23-07, July 16, 2007; NR No. 13-05, Oct 7, 2005; NR No. 02-05,
    March 2, 2005; NR No. 17-04, Oct 5, 2004; NR No. 08-08, May 29, 2008
    (xx)  See Technical Reports filed on SEDAR by Acadian Mining Corporation
          for details.
    (xxx) 50% owned by Acadian Mining Corporation
    

    Grant Thornton Limited was appointed by the Court as the Monitor for
ScoZinc's CCAA proceedings. 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
Canada.

    Other
    -----

    Terence Coughlan, B.Sc., P. Geo., is a qualified person as defined by
National Instrument 43-101 and has reviewed the technical information reported
in this news release for accuracy.

    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.

    Other
    -----

    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,
email: mail@acadianmining.com.

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




For further information:

For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President, (902) 444-7779, Toll Free: 877-444-7774,
mail@acadianmining.com

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Acadian Mining Corporation

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