Black Eagle Mining Corporation (BEM) is a private company incorporated under the laws of British Columbia and holds a 100% interest in certain applications forming the Blackstone metallurgical coal project in Alberta purchased pursuant to an agreement between BEM and Rio Tinto Exploration Canada Inc.
On March 16, 2012, NEMI acquired 5 million common shares of BEM in a private placement for a total cash consideration of $3,750,000 or $0.75 per share. On completion of the acquisition NEMI's CEO was appointed to the BEM board of directors.
On June 1, 2012, BEM closed a $12.5 million private placement at a price of $1.80 per share.
On March 26, 2013, NEMI acquired an additional 200,000 common shares of BEM from a private party for a purchase price of $1.50 per share. The Company currently holds 5.2 million common shares representing 14.6% of the outstanding share capital of BEM.
During the year ended September 30, 2015, BEM’s project was placed on care and maintenance until the market for metalurgical coal improves and BEM can find additional financing. Accordingly, the Company’s net loss for the year ended September 30, 2015, included an unrealized mark to market loss of $6,240,000 to adjust the fair value of the shares to $nil.