Trading Symbol: ADA: TSX; ADAIF: OTCQX
HALIFAX, June 6, 2012 /CNW/ - Acadian Mining Corporation ("Acadian" or the "Company") (TSX: ADA) (OTCQX: ADAIF) is pleased to announce that, further to its news release dated May 16, 2012, it has completed the private placement ("Private Placement") of up to $600,000 principal amount of unsecured convertible debentures (the "Debentures") with its two major shareholders, Golden River Resources Corporation ("Golden River") and Igneous Capital Limited ("Igneous").
Pursuant to the Private Placement, Golden River will purchase up to $420,000 principal amount of Debentures and Igneous will purchase up to $180,000 principal amount of Debentures. The Debentures will be unsecured and convertible into common shares of the Company ("Common Shares") at the holder's option at a price of $0.12 per common share at any time within 12 months from the date of issuance of the Debentures. The Debentures will accrue interest at the rate of 8% per annum and such interest will only become payable in the event that the holders do not elect to convert the Debentures into Common Shares. All of the securities issued in connection with the Private Placement are subject to a hold period of four months and one day from the date of issue.
The principal amount under each of the Debentures will be advanced to Acadian in three equal instalments over the next two months, with the first instalment having been received by Acadian on completion of the Private Placement. The proceeds of the Private Placement will be used by Acadian for general corporate purposes.
Forward Looking Statements
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 29, 2012, which is available at www.SEDAR.com. Acadian's forward looking statements are expressly qualified in their entirety by this cautionary statement.
About the Corporation
Acadian is a Halifax, Nova Scotia, Canada based company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources. The Corporation also owns barite properties on Cape Breton Island, Nova Scotia. Acadian's primary focus is centered on exploration and development of its core gold deposits in Atlantic Canada, namely the Fifteen Mile Stream and Beaver Dam Projects.
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 news release.
For further information:
Grant Ewing, President and Chief Executive Officer
(902) 444-7779 Toll Free: (877) 444-7774
Halifax, Nova Scotia