VANCOUVER, May 18 /CNW/ - NEMI Northern Energy & Mining Inc. ("NEMI" or the "Company"/TSX: NNE.A) announces that it has invoked the formal dispute resolution process under the PRC Limited Partnership Agreement with a minority partner holding a 12.99% interest in the PRC Limited Partnership (the "Minority Partner").
The matter in dispute arises from the Minority Partner's failure to provide the required notice of the indirect transfer resulting from the Minority Partner's plan of arrangement under which a third party (the "Acquiror") acquired control of the Minority Partner on December 21, 2009. Such notice would have enabled the other partners to elect to acquire the Minority Partner's 12.99% interest in PRC prior to completion of the plan of arrangement under which the Acquiror acquired 100% control of the Minority Partner. NEMI had previously issued a letter setting out the default, followed by a calculation of acceptable compensation based on NEMI's estimate of the difference in the fair market value of the Minority Partner's PRC interest between December, when proper notice of indirect transfer should have been given, and the current fair market value. The Minority Partner has denied the default and NEMI's entitlement to compensation.
NEMI's claim against the Minority Partner is solely for financial compensation and will not encumber the transfer of the partnership assets or interfere in any way with the PRC sales process.
This document may contain statements about anticipated or expected future events and financial results that are forward-looking in nature and are, as a result, subject to certain risks and uncertainties, such as general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. We seek safe harbour.
SOURCE NEMI NORTHERN ENERGY & MINING INC.
For further information: For further information: Michael Cooney, Chairman, NEMI Northern Energy & Mining Inc., (T) (604) 684-1554, (T) (415) 339-8825, (F) (604) 684-1556, E-mail: email@example.com