Acadian Mining Corporation ADAIF

sco-zinc chapter 11 proceedings

[odzie]

  
   All of the proceedings will start next week. This will be an interesting state of affairs as liquidating the Scotia mine at this particular time will not be very easy. I cannot see any buyers lining up to purchase it. What I feel the final outcome will be is that Acadian might walk away with the Scotia mine and its mill and operations for pennies on the dollar and then be able to start up its gold operations with a small upgrade.

  I think people here should be made aware that it was always the intention of what then was called Acadian gold to run the scotia mine as a gold operation. But due to the strong price of zinc and lead they changed their minds to run the scotia mine as a zinc lead producer and changed there name to Acadian mining. Since that time they never really got any value for there gold resources and were always seen as a play on zinc and lead. Spinning off to form Annapolis to get value for the gold was done too late as the market was already going down the toilet.  

  Sco-Zinc going chapter 11 may actually be the best thing that Acadian could do to create shareholder value currently. Going after Scotia mine assets as an unsecured creditor to create a gold producer might pay off very handsomely for current investors. It will be interesting to see if Acadian can convince creditors the court and the government that the best course of action for the Scotia mine is to turn it into a gold producer as opposed to a zinc lead producer as was originally planned. I believe they will and have personally started to buy in anticipation of this happening. I cannot see anybody coming forward and putting up money to run an unprofitable zinc, lead mine. I can see a restructuring scenario where the Scotia mine is converted to a profitable gold producer with Acadian providing the ore for its operations and Acadian still retaining the Scotia mine. CHIMO>