VANCOUVER – The planned merger of NEMI NORTHERN ENERGY & MINING and WESTERN CANADIAN COAL has run into problems. Last April the two announced that NEMI would become a wholly owned subsidiary of Western, but now it appears NEMI wants to terminate the agreement.
Western says that contrary to published reports, the agreement remains in force and it intends to complete the transaction. As NEMI announced, Western notified NEMI that NEMI was in breach of the agreement, and that Western was entitled to terminate it. Western did not terminate the agreement and NEMI has no legal right to terminate the agreement, which remains in force. NEMI’s discussions with other parties concerning a possible transaction involving coal properties near Tumbler Ridge, B.C. (Net News of July 12, 2006), clearly violates NEMI’s contractual obligations to Western, according to the latter.
The war of words will continue at www.Nemi-Energy.com and www.WesternCoal.com.