Acadian Mining reports granting of security to Royal Roads Corp.admin
Acadian Mining Corporation announced that it granted security to Royal Roads Corp. to secure advances from Royal Roads to Acadian and its subsidiaries. The inter-company advances between Royal Roads and Acadian and its subsidiaries have fluctuated during the year and stood at $2,292,460 due to Royal Roads as at November 28, 2008. On November 28, 2008, the parties entered into formal documentation with respect to the loan and, as security for the loan, Royal Roads was granted a first, fixed and floating charge on all of the assets of Acadian and of its wholly-owned subsidiaries, ScoZinc Limited and Annapolis Properties Corp. The loan bears interest at 10% per annum, payable quarterly, and is due on November 30, 2009.
Acadian also announced that it filed amended interim unaudited financial statements for the period ended September 30, 2008. The amended filing was prepared pursuant to an internal review of the Company’s disclosure on related party transactions. At the end of the third quarter, the Company owed $531,507 to its affiliate, Royal Roads, a company of which Acadian holds 29.18% of the outstanding common shares. This amount was included in Payables and Accruals under current liabilities and has been restated as being due to Royal Roads. It remains as a current liability; however, Note 6 on related party transactions has been amended to reflect this change and to give additional information on the inter-company balances and the terms agreed to by the parties. All amended documents are available at www.sedar.com.
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.