February 8, 2011 / 3:23 PM / in 7 years

UPDATE 1-Acadian Mining to sell zinc, lead interests; shrs jump

* Signs LoI to sell zinc, lead assets for C$10 mln

* Plans to focus on gold exploration

* Shares up 19 pct

Feb 8 (Reuters) - Acadian Mining Corp ADA.TO said it agreed to sell its zinc and lead interests in Canada for C$10 million to focus on gold exploration, sending its shares up 19 percent.

The company’s shares rose 19 percent to 41 Canadian cents in early morning trade on Tuesday on the Toronto Stock Exchange.

Halifax, Nova Scotia-based Acadian said it signed a letter of intent with Selwyn Resources Ltd to sell its interests. Selwyn will buy all issued and outstanding shares of ScoZinc Ltd, which holds all assets associated with the Scotia Mine in Nova Scotia.

Upon completion, Selwyn will own the mine-mill complex and an extensive mineral claims package, Acadian said in a statement.

The companies have agreed to an exclusive period expiring on Feb. 14.

Acadian said its 2011 exploration activities will focus on its two advanced stage gold projects -- Fifteen Mile Stream and Beaver Dam -- both of which have potential to be developed as bulk tonnage open-pit mines.

“Significant resources have been identified at the projects, and the exploration programs are designed to increase both the scale and quality of the resources,” the company said in a statement. (Reporting by Isheeta Sanghi in Bangalore; Editing by Sriraj Kalluvila)

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