Acadian Gold Corporation
TSX VENTURE : ADA

Acadian Gold Corporation

October 05, 2005 16:54 ET

Acadian Gold Coporation Announces Private Financing

HALIFAX, NOVA SCOTIA--(CCNMatthews - Oct. 5, 2005) -

DRILLING TO RESUME AT BEAVER DAM

Acadian Gold Corporation (TSX VENTURE:ADA) ("Acadian Gold") announced today that it has agreed to issue CDN$499,500 of flow-through shares ("Flow-Through Shares") to Mavrix Fund Management Inc. by way of private placement, subject to the receipt of all necessary regulatory and stock exchange approvals.

Acadian Gold will issue 1,850,000 Flow-Through Shares at $0.27 per share for gross proceeds of $499,500. The Closing is expected to occur on or before October 12, 2005.

Northern Securities Inc. will be entitled to receive a cash commission equal to 3% of the gross proceeds of the private placement. In addition, Acadian Gold will issue 55,000 common shares of Acadian Gold to a broker at Union Securities Ltd.

The proceeds from the Flow-Through Shares will be used to further develop Acadian Gold's Canadian projects in Nova Scotia.

Beaver Dam

A second phase diamond drilling program is scheduled to recommence at Beaver Dam on October 13, 2005. Beaver Dam is showing potential for an open pittable - bulk tonnage gold deposit as demonstrated by drill results from the recently released (press releases September 6, 2005 and September 22, 2005) first 10 drill holes of a 16 hole program. Drill intersections assaying 2.64 g/t gold over 52 metres (DDH BD2005-10) and 5.9 g/t gold over 24 metres (DDH BD2005-08) amongst other wide gold mineralized intersections were previously reported in these releases.

Peter C. Webster, P. Geo. is responsible for the management and supervision of the Company's exploration program and is responsible for the preparation of the technical information reported in this news release. Mr. Webster is an independent third party geologist, President of Mercator Geological Services Limited and a qualified person as defined by National Instrument 43-101.

For additional information on Acadian Gold's properties and activities, please visit our web site at www.acadiangold.ca. If you wish to be added to Acadian Gold's email or fax distribution list for future news releases and updates, please contact us at phone: 902-444-7779, fax: 902-444-3296.

Shares Outstanding: 48,092,473

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Acadian Gold Corporation
    G. William Felderhof
    President & CEO
    (902) 444-7779 or 1 (877) 444-7774
    or
    Acadian Gold Corporation
    Terry F. Coughlan
    Vice President
    (902) 444-7779 or 1 (877) 444-7774
    mail@acadiangold.ca
    Halifax, Nova Scotia