Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 170,549,112
HALIFAX, April 29 /CNW/ - Acadian Mining Corporation (TSX: ADA)
("Acadian" or the "Company") announces that ScoZinc Limited, a wholly owned
subsidiary of Acadian ("ScoZinc"), will make application to the Nova Scotia
Supreme Court ("Court") on May 1, 2009 pursuant to the Companies' Creditors
Arrangement Act ("CCAA") for preliminary approval of a plan of arrangement
("Plan of Arrangement") and for an order approving details of a meeting of
ScoZinc's creditors to approve the Plan. Under the terms of the proposed Plan,
certain creditors will be paid in full, including secured creditors,
employees, amounts owing to TCE Capital Corporation (which provided interim
funding since the date of the original order under the CCAA) and amounts owing
to creditors who provided services to ScoZinc since the date of the original
order. All unsecured creditors, who are owed an aggregate of approximately
$7.4 million, will receive a payment of up to $1,000 and will share pro-rata
in the balance of a total pool of $300,000. The amounts owing to certain
government creditors shall remain an obligation owed by ScoZinc and are not to
be funded by the Plan. These claims will be addressed in accordance with
agreements to be negotiated between ScoZinc and such creditors. The amount
owing to Acadian (approximately $22 million) shall remain an obligation owing
If approved by the Court, ScoZinc will present the Plan to its creditors
at a meeting of creditors scheduled to be held on May 21, 2009. In order for
the Plan to be effective, it must be approved by in excess of 50% of the
creditors by number and two-thirds of the creditors by value voting on the
Plan, in each of the two classes (secured and unsecured). Acadian will not be
voting on the Plan.
Acadian has agreed to loan additional funds to ScoZinc to fund the Plan.
The loan from Acadian is subject to a number of terms and conditions,
including the approval of the Plan by the affected creditors of ScoZinc. It is
also conditional on the closing of the second tranche of a private placement
of shares with Golden River Resources Corporation for $9 million (300,000,000
shares at $0.03 per share). See news release April 30, 2009. This private
placement is itself subject to a number of conditions including receipt of
regulatory approvals, approval of the Plan by the creditors of ScoZinc, and
approval of the private placement by the shareholders of Acadian. Acadian will
seek approval from its shareholders at its next annual meeting. Notice of the
meeting and supporting documents will be mailed to shareholders in the coming
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,