A merger between Vancouver's NEMI Northern Energy and Mining Inc. (TSX:NNE.A) and Australia-based Aviva Corp. has been mothballed after an error was found in NEMI's documentation.
It related to the company's cash calls in Peace River Coal LP (PRC) and reduced NEMI's interest in PRC to 12% from an expected 16% to 17%.
Under the terms of the merger implementation agreement, the error constituted an adverse material change to NEMI. Aviva consequently decided to terminate the deal and collect the $1 million break fee from NEMI as prescribed by the agreement.
NEMI's share price range during the past week: between $0.19 and $0.25; 52-week high: $1.93; 52-week low: $0.17.