05/12/09 trading activity...
posted on
May 13, 2009 05:09AM
Recent Drill Results: 2.03 g/T over 106.8 metres, including 2.81 g/T over 72.9 metres
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Acadian Mining confirms no material developments
Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 170,549,112
HALIFAX, May 12 /CNW/ - At the request of Market Surveillance, on behalf
of the Toronto Stock Exchange, Acadian Mining Corporation (TSX: ADA)
("Acadian" or the "Company") confirms that there are no material undisclosed
corporate developments to account for recent trading activity in the Company's
shares on the Toronto Stock Exchange.
Aussies set to tap into N.S. gold
By BILL POWER Business Reporter
Wed. May 13 - 6:26 AM
A deal that would see the developer of some of Australia’s biggest gold mines come panning for the precious metal in Nova Scotia could close in about a week.
Documents filed with the Supreme Court of Nova Scotia indicate Golden River Resources Corp. of Australia is proceeding with its commitment to pump as much as $10 million into Halifax-based Acadian Mining Corp. as part of an effort to determine the commercial viability of gold reserves held by Acadian in the eastern part of the province.
However, the deal hinges on investor approval of a restructuring plan for ScoZinc Ltd., a wholly-owned affiliate of Acadian, under the Companies’ Creditors Arrangement Act. ScoZinc mothballed its Gays River lead and zinc operation after markets tanked last year, putting about 140 people out of work.
Investors in Acadian Mining will vote on a proposed settlement plan for ScoZinc at a creditors meeting May 21 in Halifax.
"The private placement by Golden River in shares of Acadian has occurred," states a monitor’s report to creditors from Grant Thorton Ltd.
The Grant Thorton report suggests a payout plan that begins at two cents on the dollar is the best possible deal for some creditors.
"ScoZinc’s financial crisis was the cumulative result of a number of factors outside of its control, but is primarily the consequence of rapid and deep decline in world commodity prices in the second half of 2008," reads the monitor’s report.
The owners of the stalled mine would be on the hook for a number of liabilities if the Acadian shareholders vote for a forced liquidation of ScoZinc, including an estimated $2.2 million worth of site remediation.
The report to creditors also notes various assets at the mine, including land and buildings valued at about $1.7 million and mining and milling equipment worth about $4.3, would be worth significantly less if a proposed restructuring plan is rejected and a forced liquidation sale is conducted.