Acadian Mining Corp has signed a letter of intent with Selwyn Resources Ltd. to sell its zinc and lead assets in Canada. The miner has decided that it wishes to focus on gold exploration only. The sale of the assets will generate Canadian $10 million for the company.
Following the announcement the shares of the mining company rose by 19 % to reach 41 Canadian cents on the Toronto Stock Exchange. Selwyn Resources will buy all the issued and outstanding shares in ScoZinc Ltd which is a subsidiary of Acadian Mining.
ScoZinc holds all assets of the Scotia Mine in Nova Scotia. After the sale Selwyn Resources will be the new owner of the mine and mill complex at Scotia Mine along with an extensive mineral claims package. The acquisition is subject to formal documentation being completed and regulatory approval being given.
Grant Ewing, President and Chief Executive Officer of Acadian Mining said that the company was very pleased to enter into this transaction with Selwyn Resources. Following the sale of the zinc and lead interests, Acadian would be a well-financed and focused gold exploration and development company, with an excellent portfolio of projects in a highly prospective and under-developed gold region.
Grant Ewing added that Selwyn has an experienced management team and is committed to the zinc business, and is thus ideally suited to bring the Scotia Mine back into commercial production.