August 18, 2011 / 2:54 PM / in 7 years

NEMI shares jump on Peace River stake sale

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Aug 18 (Reuters) - Shares of NEMI Northern Energy and Mining Inc NNEa.TO rose as much as 42 percent on Thursday, a day after the Canadian miner said it will sell its stake in Peace River Coal Ltd Partnership (PRC) for C$73 million ($74.5 million) to Anglo Coal Canada Ltd.

NEMI owns a 12.18 percent stake in PRC and Anglo Coal a majority — 74.8 percent.

PRC owns and operates the Trend coal mine in northeastern British Columbia and supplies seaborne hard coking coal to steel mills in countries that rely on coal imported by ship, including Japan, Korea and China.

Vancouver-based NEMI said shareholders representing 68.8 percent of its outstanding shares have agreed to vote in favor of the deal, a meeting for which will be held on Sept. 26.

Shares of NEMI touched a near seven-month high of C$1.09 and were the second-highest percentage gainers on the Toronto Stock Exchange.

$1 = 0.979 Canadian Dollars Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel

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