Royal Roads revises loan amount due by Acadian Mining subsidiary, ScoZinc Limited
Royal Roads Corp. announced that during the course of its year end audit activities, it determined that the inter-company advances between the Corporation and Acadian Mining Corporation and Acadian’s wholly-owned subsidiary, ScoZinc Limited , at November 28, 2008 was $362,052 more than previously reported (see News Release dated December 1, 2008). The documentation evidencing the loan has been amended to reflect the fact that the aggregate principal amount of the loan at November 28, 2008 was $2,654,512. There have been no further advances since November 28, 2008. The loan bears interest at 10% per annum, is due November 30, 2009 and is guaranteed by Acadian. It is secured by all of the assets of Acadian.
On March 17, 2009, Acadian announced it had reached agreement with Golden River Resources Corporation to complete a private placement in two or more tranches for aggregate gross proceeds of up to Cdn$10 million. The first tranche, for an aggregate of Cdn$1.0 million (38,111,334 shares), is subject only to receipt of the required regulatory approvals, including the approval of the Toronto Stock Exchange and is expected to occur in one or more closings on or about April 10, 2009. The remaining Cdn$9.0 million of the Offering (300,000,000 shares at Cdn$0.03 per share) will close in one or more tranches upon the receipt of all necessary regulatory approvals, approval of the shareholders of Acadian and the satisfaction of certain other conditions precedent, including completion of due diligence by Golden River and the resolution of the proceedings commenced by Acadian’s wholly-owned subsidiary, ScoZinc, under the Companies’ Creditors Arrangement Act. Royal Roads has made a claim as an unsecured creditor of ScoZinc in the CCAA Proceedings and will participate pro rata with other unsecured creditors in any distributions made pursuant to any plan of arrangement approved by ScoZinc’s creditors and the Supreme Court of Nova Scotia.