Feb 23 2011
Acadian Mining Corporation (TSX: ADA) has announced that it has signed a binding Letter Agreement with Selwyn Resources Ltd. whereby Selwyn would acquire the zinc and lead assets of Acadian for a cash consideration of $10 million.
The sale will be consummated by Selwyn acquiring all of the issued and outstanding shares of ScoZinc Limited ("ScoZinc") which holds all of the assets associated with the Scotia Mine located in Nova Scotia ("Acquisition"). The sale price for ScoZinc is $10 million less certain deductions related to increased bonding requirements for an amended reclamation and closure plan for the Scotia Mine. Upon completion of the Acquisition, Selwyn will own a 100% interest in the mine-mill complex and an extensive mineral claims package.
The Acquisition is subject to the execution of a formal purchase and sale agreement and the achievement of certain conditions precedent prior to closing, including Selwyn being satisfied with the results of an environmental audit of the Scotia Mine site by an independent consulting group and Selwyn receiving an independent NI 43-101 Technical Report that confirms the Mineral Resources reported by ScoZinc. The closing of the transaction is to occur on the 10th business day after the parties have executed the purchase and sale agreement, provided that all conditions precedent to the closing are in place at that time, and if they are not, the closing is to occur at such other time as is agreed to by the parties but by no later than May 8, 2011.
Grant Ewing, President and C.E.O., stated, "Acadian is pleased that the negotiations for the sale of its zinc and lead assets is progressing smoothly. Following the sale of the Scotia Mine, Acadian will be well-financed and focused on exploration and development of its prospective gold portfolio in Nova Scotia".
Source: Acadian Mining Corporation