Igneous Capital Limited

June 07, 2012 09:59 ET

Igneous Capital Subscribes for Unsecured Convertible Debentures of Acadian Mining Corporation

NEWPORT PAGNELL, UNITED KINGDOM--(Marketwire - June 7, 2012) - This press release is issued by Igneous Capital Limited ("Igneous"), an entity controlled by Graham Edwards ("Edwards"), pursuant to the early warning requirements of National Instrument 62-103 with respect to 8% unsecured convertible debentures ("Debentures") of Acadian Mining Corporation ("Acadian"), a reporting issuer in certain jurisdictions in Canada. In accordance with such early warning requirements, Igneous is required to report certain information in respect of its holdings of securities of Acadian.

Igneous announced today that it has agreed to purchase from Acadian, Debentures in the aggregate principal amount of C$180,000 (the "Acquisition"). The Acquisition will occur through three separate tranches of C$60,000 subscriptions of Debentures. The first tranche of the Acquisition was completed on June 6, 2012. The second tranche of the Acquisition is expected to be completed on or before June 8, 2012, and the final tranche of the Acquisition is expected to be completed on or before July 8, 2012. The Acquisition is part of a total offering by Acadian of C$600,000 worth of Debentures, of which Golden River Resources Corporation will be subscribing for the remaining C$420,000 worth of Debentures.

The Debentures will have a maturity date of one year from the date of issuance, and will be convertible into common shares of Acadian ("Debenture Shares") at a price of C$0.12 per Debenture Share at any time at the option of Igneous, subject to the terms and conditions of the subscription agreement executed by Igneous for the Acquisition and accepted on June 6, 2012. If all the Debentures are fully converted, the resulting Debenture Shares represent ownership and control of approximately 2.7% of the issued and outstanding common shares of Acadian as at the date hereof and Edwards would have beneficial ownership of a total of 12,283,145 Common Shares, representing approximately 22.1% of the issued and outstanding Common Shares, each on a partially diluted basis.

Igneous was established in 2011 to invest primarily in gold mining assets and gold exploration globally. This will be the first acquisition by Igneous and will be effected for investment purposes. Igneous will evaluate its investment in Acadian from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in Acadian as circumstances require. For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder, please go to the Acadian profile on the SEDAR website www.sedar.com.

Note: Disclosure regarding the percentage of outstanding Common Shares held by Igneous and Acadian's outstanding share capital is based on information provided by Acadian.

Contact Information

  • Igneous Capital Limited
    William Bush
    willbush@live.co.uk

    Igneous Capital Limited
    Sherington House
    Park Road
    Sherington
    Newport Pagnell
    MK16 9PF, United Kingdom