VANCOUVER – NEMI NORTHERN ENERGY AND MINING has signed an agreement making it a wholly owned subsidiary of WESTERN CANADIAN COAL CORP. Subject to conditions, including the approval of NEMI shareholders, Western will issue one of its common shares for each 1.8 NEMI shares.
Both companies are calling the combination a good deal. They expect to benefit from a proven management team, high quality reserves, low-cost and long-life operations plus access to under-utilized rail and port facilities. The combined company will have annual production of 5.0 million tonnes of hard coking coal by 2007, making it a “significant” supplier to the global markets.
Additionally, the combined company would control 100% of the Belcourt and Saxon properties in northeastern British Columbia. That creates an opportunity to accelerate development of these properties, which are currently being evaluated under a joint venture arrangement between the two companies.
More information is available at either www.WesternCoal.com or www.NEMI-Energy.com.