The Trend property is located about 25 km south of Tumbler Ridge, and about 12 km south of the BC Rail spur into the Quintette mine site. It includes 14 coal licenses covering an area of 4172 hectares. Nemi website announcement: http://www.nemi-energy.com/20030718.html
NEMI Northern Energy & Mining Inc. (the “Company?) is pleased to announce that it has signed a Letter of Intent with an international steel producer and a Memorandum of Understanding with a Japanese end-user for the future sale of metallurgical coal from the Company?s Trend Property.
LETTER OF INTENT AND FINANCING
The Letter of Intent states that the Company will sell a minimum of 120,000 tonnes per annum (maximum 250,000 tonnes per annum) of its L Seam Product for 2 years commencing the Coal Year starting April 1, 2005. The Company will then sell a minimum of 500,000 tonnes per annum of its Trend Standard Coking Product (maximum 750,000 tonnes per annum) for a period of 3 years commencing April 1, 2007.
The actual quantity of the L Seam Product to be delivered each year will be determined by the Company at the beginning of the year. The pricing of the products sold will be based upon market price of equivalent products.
The Letter of Intent also contemplates that the purchaser will provide a $10,000,000(CDN) financing for development of the Trend Property. The details of the financing are to be negotiated between the parties.
MEMORANDUM OF UNDERSTANDING
The Company also wishes to announce that it has entered into a Memorandum of Understanding with a Japanese end-user for the sale of a minimum of 60,000 tonnes per annum (maximum 120,000 tonnes per annum) of L Seam Product for 2 years commencing the Coal Year starting April 1, 2005 and the purchase of a minimum of 120,000 tonnes per annum (maximum 180,000 tonnes per annum) of the Trend Standard Coking Product for a period of 3 years commencing with the Coal Year starting April 1, 2007. The price will be based on equivalent product market price in each of these years.
Both the Letter of Intent and the Memorandum of Understanding are subject to several conditions which include, in each case, a formal Coal Purchase Agreement to be completed between the parties and the Company obtaining all necessary regulatory approvals to enable development and mining of the L Seam Product and the Trend Standard Coking Product.
In order to meet the schedule for the production and sale of the L Seam Product, the Company will require a Mine Permit allowing it to produce up to 250,000 tonnes of product per annum. The Company is in the process of preparing an application to the Ministry of Energy and Mines for a Mine Permit. The Company will also be continuing its work programme on the major mine development of the Trend Property