Adanac Completes Initial Restructuring.
January
20, 2009 - Vancouver, British Columbia.
Adanac Molybdenum
Corporation (�Adanac or the Company�, - TSX: AUA, Pink
Sheets: AUAYF, Frankfurt:
A9N) announced today that in connection with its overall restructuring under
the Companies� Creditors Arrangement Act
(the �CCAA�),
it has implemented measures to curtail its business operations and
substantially reduce its operating costs.
This initial phase of the
Company�s restructuring included, among other things, reducing employees by
approximately 70%, substantially reducing contractors, demobilizing the Ruby
Creek site, eliminating or substantially reducing services provided to the
Company and repaying a portion of the Company�s indebtedness to its Senior
Secured Creditors.� Adanac
expects to further reduce operating costs by consolidating its head and engineering
offices to minimize lease payments.
Adanac also announces
that Mr. Edward C. Lee and Mr. Neil S. Seldon have
resigned from the Board of Directors of the Company.� Adanac extends its
gratitude to Edward and Neil for their services over many years and wishes them
success in their future endeavours.
As stated in prior news
releases, Adanac has engaged Golder
Associates Ltd. to continue to update the Ruby Creek mineral resources,
compliant with NI 43-101, so as to include results from the 2007 and 2008
exploration program.� The 2007 and 2008
exploration drilling program was completed prior to demobilization of the Ruby
Creek site.
Going forward, Adanac intends to continue to seek investors for the
development of the Ruby Creek project while concurrently seeking opportunities
relating to the sale of the Company or its assets.� Any refinancing or sale will be subject to
approval from the Senior Secured Creditors, KPMG Inc. in its capacity as
Monitor appointed in Adanac�s CCAA proceedings as
well as the Supreme Court of British Columbia.
About Adanac Molybdenum
Corporation
Adanac Molybdenum Corporation is listed on the
TSX and Frankfurt exchanges and owns the Ruby Creek Project in northern British Columbia.
The Company has advanced the project through feasibility studies, a production
decision and has previously ordered long-lead equipment, completed permitting
for construction, constructed a road to the site and secured US$80 million in
bridge financing.
Adanac Restructuring Process
Readers
are reminded that, on December 19, 2008, Adanac
obtained an Initial Order under the CCAA as part of its intention to
restructure its business, including primarily its debt.
By Order of the Supreme Court
of British Columbia made Friday, January 16, 2009, all of the relief granted in
the Initial Order made in Adanac's Companies' Creditors Arrangement Act
proceedings on December 19, 2008 has been confirmed, including the stay of
proceedings which has been extended until April 3, 2009.� Further information, including copies of the
December 19, 2008 and January 16, 2009 Orders can be found on the website of
KPMG Inc. at www.kpmg.ca/adanac.
The Initial Order appointed KPMG Inc. as Adanac�s Monitor.
Enquiries may be directed to:
Mr. Mark Kemp-Gee,
KPMG Inc.
777 Dunsmuir Street, PO Box 10426
Vancouver, BC
V7Y 1K3
Telephone: (604) 691-3397
Facsimile: (604) 691-3036
Email: mkempgee@kpmg.ca
Information Contact
Peter R. Jones � Chairman & CEO
Suite 200 � 2055 152 Street, Surrey,
B.C.� V4A 4N7
Telephone: (604) 535-6834��� Facsimile:
(604) 536-8411
Email: info@adanacmoly.com
Cautionary
Notice:� The Reader is cautioned that the full
Cautionary Notice is not attached to this email.� The reader is requested to access the news
release on the Company�s website at www.adanacmoly.com
or at SEDAR at www.sedar.com
to read the full Cautionary Notice.� The
full Cautionary Notice is not attached as the recipient�s spam filters
frequently block receiving emails containing the full Cautionary Notice.