Acadian Mining Corporation announces acquisition of interest in Fifteen Mile Stream gold propertyadmin
Acadian Mining Corporation (TSX: ADA; “Acadian” or the “Corporation”) announced today that it has acquired 50% of the outstanding shares (“Shares”) of 6179053 Canada Inc. (“6179053″) as well as a shareholder’s loan in the amount of $68,745 for an aggregate purchase price of $1,068,745. 6179053′s only asset is the Fifteen Mile Stream gold property comprising two exploration licenses and one special license which cover 39 contiguous mineral claims totaling 631.5 hectares (1,560 acres) in Halifax County, Nova Scotia, Canada. The vendors of the Shares are not related parties of Acadian. Thirty-five percent of the Shares will continue to be held by William Felderhof, a director and President and Chief Executive Officer of Acadian, and the balance of 15% by other parties.
The Fifteen Mile Stream property hosts the Egerton-MacLean gold deposit and is strategically located on the regional scale Moose River – Fifteen Mile Stream anticlinal structure which is host to three advanced exploration to development stage bulk tonnage gold deposits. Details of the property and the National Instrument 43-101 compliant inferred resource estimate prepared on behalf of 6179053 by Hudgtec Consulting Limited are contained in News Release 08-08 dated May 29, 2008.
Plan of Arrangement
As disclosed in Acadian’s News Release 05-08 on April 18, 2008, Acadian intends to “spin out” its gold assets to a new public company, Annapolis Gold Corporation (“Annapolis”), pursuant to a statutory plan of arrangement (“Arrangement”). The Arrangement will result in shareholders of Acadian receiving one share of Annapolis for every four shares of Acadian they hold on the “Distribution Date” and Annapolis will own all of the Spinout Assets, including Acadian’s four advanced stage exploration properties (Beaver Dam, Tangier, Forest Hill and Goldenville), which form the core holdings of the Scotia Goldfields project. Acadian’s interest in 6179053 will be included in the “spin out” assets, although Annapolis will be responsible to reimburse Acadian for the purchase price.
The Arrangement is subject to a number of conditions, including receipt of all necessary shareholder, court and regulatory approvals. Assuming all conditions are met and the Arrangement proceeds, it is anticipated that the “Effective Date” will occur in late June, 2008.
As announced in Acadian’s News Release 07-08 on May 26, 2008, Annapolis is presently proceeding with a marketed private placement of up to 20 million units of Annapolis (“Units”) at $1.00 per Unit (the “Offering”). Each Unit consists of one common share of Annapolis and one-half of one warrant of Annapolis (a “Warrant”). One whole Warrant is exercisable for one common share of Annapolis at $1.20 for 18 months from the closing of the Offering. The Offering is anticipated to close on the “Effective Date” of the Arrangement.
About the Corporation
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.
The Scotia Mine operates as an open pit mine and is expected to produce 30,000 tonnes of high grade zinc concentrate and 12,000 tonnes of high grade lead concentrate per year. See Acadian’s News Release No. 16-06 dated July 17, 2006 for further details.
The Corporation is also focused on developing four advanced gold properties, Beaver Dam, Tangier, Forest Hill and Goldenville. Each of the four advanced properties host gold resources described in technical reports prepared in compliance with National Instrument 43-101 and are available on www.sedar.com. A summary of gold resources for Goldenville, Forest Hill and Tangier is provided in News Release No. 01-06 issued on January 5, 2006, under the paragraph titled “About Acadian Gold”. A summary of gold resources for Beaver Dam is provided in News Release No 23-07 issued on July 16, 2007. The Corporation is bringing a new approach to the development of Nova Scotia gold deposits by pursuing a multiple mine, central processing, managing and servicing strategy.
The Corporation holds a 44.42% equity interest in Royal Roads Corp. (“Royal Roads”) (RRO-TSX-V). Royal Roads’ principal asset is a 16,075 hectare (approximately 32 km x 5 km) mineral property known as the Tulks North property which is strategically located in the centre of the world-class Buchans base metal camp in central Newfoundland, Canada. In addition, Royal Roads holds a 26.4% equity interest in Buchans River Ltd. (“Buchans River”) (BUV-TSX-V), which also holds a highly prospective property portfolio in the Buchans camp. Acadian’s indirect interest in Buchans River is 11.7%.
Forward Looking Statement
Certain information regarding the Corporation 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 Corporation 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 Corporation cautions that actual performance will be affected by a number of factors, many of which are beyond the Corporation’s control, and that future events and results may vary substantially from what the Corporation currently foresees. Discussion of the various factors that may affect future results is contained in the Corporation’s Annual Information Form dated March 26, 2008 which is available at www.sedar.com. The Corporation’s forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For additional information on the Corporation’s properties and activities, please visit our web site at www.acadianmining.com. If you wish to be added to the Corporation’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(at)acadianmining.com.
For further information
G. William Felderhof, President & CEO
Terry F. Coughlan, Vice President, (902) 444-7779, Toll Free: (877) 444-7774, firstname.lastname@example.org
Source: Acadian Mining Corporation