Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 191,800,752
HALIFAX, May 29 /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian"
or the "Corporation") is pleased to announce that the Supreme Court of Nova
Scotia ("Court") has ratified the plan of arrangement ("Plan") that ScoZinc
Limited, a wholly-owned subsidiary of Acadian, had prepared pursuant to the
provisions of the Companies' Creditors Arrangement Act ("CCAA") to settle the
claims of its creditors. ScoZinc's creditors had voted overwhelmingly in
favour of the proposed Plan at a meeting of creditors held on May 21, 2009.
Under the terms of the Plan, certain creditors will be paid in full, including
secured creditors, employees and amounts owing to creditors who provided
funding or services to ScoZinc since the date of the original order. See the
Corporation's news release 07-09 dated April 29, 2009, for further details of
the Plan. The materials filed with the Court to date in the CCAA proceedings
are available at www.grantthornton.ca under the Creditor Updates Links.
Completion of the Plan is contingent on Acadian completing the private
placement with Golden River Resources Corporation ("Golden River"). On March
17, 2009, Acadian entered into an agreement with Golden River to complete a
private placement of up to 338,111,334 common shares for aggregate gross
proceeds to Acadian of up to $10 million. The initial tranche of $1 million
was conditional only on regulatory approval. $447,457 of the $1 million was
advanced on April 3, 2009 and, on May 27, 2009, the Corporation received
approval from the Toronto Stock Exchange to release the balance of the $1.0
million from escrow and issue 21,251,640 shares to Golden River. Golden River
is now entitled to nominate one member to the Board of Acadian.
The remaining $9 million of the Golden River private placement is subject
to a number of conditions precedent, including the satisfactory completion of
due diligence activities by Golden River by June 1, 2009, and approval of the
balance of the private placement by the shareholders of Acadian at the annual
and special meeting of shareholders scheduled for June 9, 2009. See the
Corporation's news release 06-09 dated April 3, 2009, for further details of
the private placement.
"Management believes the proposed transaction with Golden River provides
the Corporation with a base from which it can re-build, which is preferable to
selling assets at fire sale prices - assuming buyers could be found," said
Will Felderhof, President and CEO. The Golden River private placement will
provide Acadian with the opportunity to settle with its creditors, retain the
Scotia Mine, retain and continue the development of its advanced gold
properties, retain its 29% interest in Royal Roads Corp. and meet its near
term operational funding requirements. It also brings to Acadian the skill set
and experience of Joseph Gutnick, a well known and accomplished mining
entrepreneur in the Australian mining industry."
Acadian is a Halifax, Nova Scotia, Canada based mining company that owns
a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia which has recently
been placed on care and maintenance, and is exploring and developing gold,
zinc-lead, and barite properties in Atlantic Canada.
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,