Acadian Mining to extend expiry of 1.2 million warrants
Acadian Mining Corp (C:ADA)
Shares Issued 142,377,907
Last Close 6/13/2008 $0.57
Monday June 16 2008 - News Release
Mr. G. William Felderhof reports
ACADIAN MINING CORPORATION TO EXTEND WARRANT EXPIRY DATE
Acadian Mining Corp. has received approval from the Toronto Stock Exchange to extend the expiry date of 1,285,875 outstanding unlisted broker unit warrants that were issued in connection with the corporation's March, 2007, private placement. Each Broker Warrant currently entitles the holder thereof to purchase one broker unit of the Corporation, comprised of one fully paid and non-assessable common share in the capital of the Corporation and one-quarter of one non-transferable common share purchase warrant ("Underlying Warrant") at any time until 5:00 p.m. (Halifax time) on June 30, 2008 ("Expiry Date") at a purchase price of Cdn$1.05. Each whole Underlying Warrant entitles the holder thereof to purchase one additional common share of the Corporation at a purchase price of Cdn$1.35. The Broker Warrants will be amended effective June 30, 2008 to extend the Expiry Date of such Broker Warrants to July 21, 2008.
As announced on June 11, 2008 by Acadian's News Release 10-08, the plan of arrangement ("Arrangement") involving Acadian and Annapolis Gold Corporation ("Annapolis") was approved by Acadian's shareholders at Acadian's annual and special meeting on June 9, 2008 and was approved by the Supreme Court of Nova Scotia on June 10, 2008. The Arrangement is discussed in further detail below. If the Arrangement is completed, then the exercise price of Acadian's outstanding warrants, including the Broker Warrants, will be adjusted pursuant to the contractual terms governing such warrants. Except for the Expiry Date extension and exercise price adjustment, all provisions of the Broker Warrants will remain the same. There are no insiders of the Corporation who hold Broker Warrants.
Plan of Arrangement
The Arrangement will result in shareholders of Acadian receiving one share of Annapolis for every four shares of Acadian they hold on the "Effective Date". Annapolis will own all of Acadian's gold assets, including Acadian's 50% interest in the Fifteen Mile Stream gold property and 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 shareholders will continue to hold all the same number of Acadian shares they owned before the Arrangement and Acadian will continue to own the Scotia Mine operations together with all of the Corporation's extensive base metal claim holdings including the Getty Deposit, the Smithfield Deposit currently under option, the Eastville prospect, the Lake Ainslie barite-fluorite deposits and its 44.42% interest in Royal Roads Corp. (RRO-TSX-V). Acadian will continue to be managed by its existing management team and Acadian will provide administrative and operational services to Annapolis with such additional staff as may be required. The officers and directors of Annapolis will initially be the same as those for Acadian.
The Arrangement remains subject to a number of conditions, including receipt of certain regulatory approvals and raising equity. 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 units comprised of common shares and warrants of Annapolis. The offering will close on the "Effective Date" of the Arrangement.