VANCOUVER and PERTH, Australia The managements of NEMI NORTHERN ENERGY & MINING of Vancouver and AVIVA CORP. of Australia are recommending to shareholders the merger of the two companies. The arrangement would create a new company equally held by NEMI and Aviva shareholders.
The merged company will have a market capitalization of $40 million and a combined cash balance of approximately $25 million. The company plans to maintain its primary listing on the Toronto Stock Exchange and will apply for listings in Australia and Botswana.
NEMI brings to the new company its 20% interest in Peace River Coal partnership which is producing metallurgical coal from the Trend mine in northeast British Columbia. Aviva brings to the table a 90% interest that it is earning in the Mmamantswe low-sulphur coal project in Botswana and its share of the Coolimba power project, to be fuelled by Aviva's nearby coal mine, in Western Australia.
Management of the new company will include expertise from both businesses, led by NEMI's Pat Devlin as executive chairman and Aviva's Lindsay Reed as president and CEO.
The Aviva website can be accessed at www.AvivaCorp.com.au, but last week the NEMI site at www.MENI-Energy.com was under construction.
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