xHillsborough, NEMI and Anglo now coal partners

Vancouver — Hillsborough Resources (HLB-T, HLSRF-O), NEMI Northern Energy & Mining (nne.a-t) and Anglo American (AAUK-Q, AAL-L) subsidiary Anglo Coal have completed the consolidation of their northeastern British Columbia metallurgical coal assets to form the Peace River Coal Limited Partnership.

Anglo Coal will receive a 60% interest, serve as operating manager and market all production from Peace River Coal while Hillsborough and NEMI will each hold 20% in the partnership.

Hillsborough and Anglo Coal each contributed their respective joint-venture interests in the Horizon property group and the Murray River group, Additionally, Hillsborough chipped in its Bickford property and made a $6.9-million payment to NEMI. Anglo also made cash and payments consideration to NEMI totalling $76.1 million.

NEMI added its Trend coal property and related assets, including coal preparation plant and rail load-out and its 50% interest in the Belcourt Saxon limited partnership with Western Canadian Coal (WTN-T, WXJXF-O).

With finalization of the asset combination and cash payments ($63 million directly and $18 million in future consideration), NEMI also emerges from creditor protection. All its secured and unsecured creditors have been paid in full.