Acadian Mining announces that subsidiary ScoZinc has obtained order authorizing borrowing of up to $1.0 million
Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 153,402,907
HALIFAX, Dec. 31 /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian" or the "Company") announces that it has obtained an order ("DIP Order") from the Supreme Court of Nova Scotia ("Court") granting ScoZinc Limited ("ScoZinc") authority to borrow up to $1 million from TCE Capital Corporation ("DIP Facility"). The DIP Order creates a priority charge and security interest in all of the property of ScoZinc as security for repayment of amounts advanced pursuant to the DIP Facility.
On December 22, 2008, the Court granted ScoZinc creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act ("CCAA"). The CCAA protection stays creditors, suppliers and others from enforcing any rights against ScoZinc while ScoZinc reviews the various alternatives for the restructuring of its affairs until world base metal prices rebound. The initial order expires on January 20, 2009 and ScoZinc intends to apply to the Court for an extension. See Acadian's news release 25-08.
The DIP Facility, which is a demand revolving loan, will be used primarily to bridge timing gaps between payables and receivables during the ongoing activities of ScoZinc while it continues operations and, if necessary transition to a "care and maintenance" mode until such time as zinc and lead prices become more favourable, or potentially to process gold ore from one or more of Acadian's nearby gold properties.
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.
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.
