CME Completes Due Diligence of Acadian

Trading Symbol: ADA:TSX

HALIFAX, May 4 /CNW/ - Acadian Mining Corporation ("Company" or "Acadian") (TSX: ADA) advises that China Metallurgical Exploration Corp. ("CME") has confirmed that it has completed its due diligence activities to its satisfaction and the parties have agreed to extend to June 17, 2011 the deadline to complete the remainder of the conditions precedent to the previously announced proposed private placement to CME. Acadian anticipates the receipt of the subscription monies from the private placement of $8.1 million by that date.

On February 24, 2011, the Company announced that it had signed a letter of intent ("LOI") with respect to a proposed investment by CME for gross proceeds of $8.1 million with a potential to raise a further $5.4 million if warrants are exercised.  The proposed private placement contemplates that CME will acquire 18,000,000 units of the Company at $0.45 per unit.  Each unit will be comprised of one common share and one-half of a warrant.  Each whole warrant will be exercisable for $0.60 for a period of three years following the closing, with one-third of the warrants vesting on closing, and one-third vesting on each of the first and second anniversaries of closing.  The LOI provides that the board of directors of Acadian will be reconstituted on the closing and nominees of CME will be added to the board.  The LOI also provides that the private placement is subject to conditions precedent being met on or before April 30, 2011 including completion of formal documentation, regulatory approval, approval from the Government of China and completion of due diligence to the satisfaction of CME.  The parties have agreed to extend this date to June 17, 2011.

About Acadian
Acadian is a Halifax, Nova Scotia, Canada based company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources totalling 626,000 indicated and 1,111,000 inferred ounces of gold.  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.

About CME
China Metallurgical Exploration Corp. is a Canadian company owned by Zhengyuan International Mining Co. Ltd. ("Zhengyuan"). Zhengyuan is a state-owned company under the China Metallurgy Bureau, which is the largest Chinese exploration organization with more than 30,000 employees working in domestic and overseas operations focused on the mineral exploration and development industry.

Qualified Person

Richard Horne, M.Sc., P.Geo., Chief Geologist of Acadian is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

For additional information, please visit our web site at:

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


For further information:

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

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