NEMI Northern Energy & Mining files fiscal 2007 annual financial statements


    VANCOUVER, Dec. 21 /CNW/ - NEMI Northern Energy & Mining Inc. (TSX:
NNE.a) reports that it has released its audited consolidated financial
statements for the year ended September 30, 2007 and that these financial
statements and the related management's discussion and analysis of financial
position and results of operations ("MD&A") are available for viewing on SEDAR
    As at September 30, 2007, NEMI is in strong financial position with
working capital of $9.7 million and no long-term debt. Management of NEMI
intends to investigate and evaluate other business opportunities, including
potential acquisitions of mineral assets.
    NEMI also owns as at September 30, 2007 a 20% partnership interest in the
Peace River Coal Limited Partnership ("PRC"), which now owns the Trend mine as
well as a number of other coal properties in northeast British Columbia. NEMI
has a free cash call carry to December 31, 2007 of up to $18 million in
respect of this investment, $15.6 million of which has been utilized,
including $5 million utilized in respect of a PRC cash call subsequent to
September 30, 2007.
    PRC is being managed and operated by Anglo American plc, which, with its
extensive experience in coal mining and marketing, will play a key role in
further developing British Columbia's northeast coalfields. PRC is ramping up
its operations, and expects to achieve commercial levels of production at the
Trend mine during the first quarter of 2008. PRC will also be carrying out
field studies and making permitting applications for its other properties.
    The partners of PRC have been presented with PRC's 2008 Program and
Budget for expenditures amounting to $198 million, the Company's pro rata
share of which is $39.6 million. Under the terms of the limited partnership
agreement, the partners are not obliged to fully participate in any program
and budget that may be proposed by the partnership, but they are subject to
dilution provisions should they not elect to participate fully. The Company
has elected to provide funding of $5 million in respect of this budget, and
accordingly, it is expected that the Company's interest in PRC will be diluted
to approximately 12%. In deciding whether or not to raise additional funding
to increase its commitment, management of the Company determined that the
amount of dilution existing shareholders would suffer would be greater than
the amount of dilution that occurs as a result of electing to contribute a
smaller amount to the 2008 Program and Budget.

    NEMI Northern Energy & Mining Inc.

    P. C. DEVLIN, President

    Note: This release may contain forward-looking statements that involve
risks and uncertainties. These statements may differ materially from actual
future events or results. Readers are referred to the documents filed by the
Company with the Toronto Stock Exchange and/or documents filed on SEDAR,
specifically the most recent reports which identify important risk factors
that could cause actual results to differ from those contained in the
forward-looking statements. Subject to applicable laws, the Company undertakes
no obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

For further information:

For further information: NEMI Northern Energy & Mining Inc., W.D.
Filtness, Chief Financial Officer, Phone: (604) 639-4527, Fax: (604) 684-0642

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