The $C84.3 million deal, which will combine the hard coking coal reserves and operations at NEMI’s Trend property with Western’s Burnt River and Wolverine operations, was initially announced last month.

The two Canadian-based companies have signed a definitive agreement; the deal now will be sealed when it comes before a special gathering of NEMI’s shareholders in June. When all is said and done, the ownership percentages of the new combined Western Canadian Coal will be 73% Western and 27% NEMI.

Management of both Western and NEMI anticipate that the new company will be able to better utilise existing assets. Their net coal reserves will exceed 85 million tons, with a yearly production of 3Mt for 2006 and an expected 7Mt for 2007 and beyond.

In the companies’ April statement, Western chief Gary Livingstone said, “We believe the merger creates a stronger company with a proven management team, high quality reserves and low-cost, long-life operations with access to under-utilised rail and port facilities, and that significant cost synergies will be derived from merging the two companies.”