The Letter Of Intent signed by the two companies this week looks at spend of up to C$20 million (US$16.64M) to update the feasibility reports on both groups of coal properties, as well as extensive work programs on the Saxon North and other properties in the Belcourt group.

The Saxon and Belcourt properties have both had extensive work programs carried out in the 1970’s and early 1980’s and feasibility reports were prepared which indicated the potential for large scale coal mining operations.

NEMI and Western intend to update the information and reclassify and expand the coal resources on these properties with a view to developing a 6-10 million tonnes per year operation. These properties currently have several hundred million tonnes of indicated and inferred coal resources.

Charles Pitcher will head up the management of the exploration work programs and scoping for the development of the project. Pitcher most recently worked in project management for Western’s current coal projects.

NEMI and Western will have 50% ownership in the two properties.

The companies will be seeking additional financings for the joint venture.