Vancouver – NEMI Northern Energy & Mining’s (NNE.A-V) is canceling its planned $36 million private placement financing.
Lead underwriter Salman Partners informed NEMI it was unable to market the 20 million unit offering at the announced price of $1.80 per unit (consisting of one common share and a half-warrant).
The funds were earmarked for accelerated development of an initial, small-scale mine at the company’s Trend coal deposit near Tumbler Ridge in northeastern British Columbia.
The company plans to forgo any re-priced financing at this time, deeming the "resulting dilution that would be suffered by its existing shareholders do not justify the benefits".
NEMI will proceed with development of the Trend mine on previous timelines, with production anticipated in late-2005.
Following the withdrawal of the financing, shares in the prospective coal producer fell over 8%, or 12, to close at the $1.35 level. NEMI posts a market capitalization of $62 million based on its 45.9 million shares outstanding.
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