Acadian Mining: ScoZinc has obtained order authorizing borrowing of up to $1.0 millionadmin
Acadian Mining Corporation announces that it has obtained an order from the Supreme Court of Nova Scotia granting ScoZinc Limited authority to borrow up to $1 million from TCE Capital Corporation. 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.