On April 26, 2016, the Black Point project received positive environmental assessment decisions from both federal and provincial authorities. The full decisions and related documents can be viewed at the Canadian Environmental Assessment Agency website and the Nova Scotia Environment website. On May 5, 2016, the Corporation received a $400,000 milestone payment from Vulcan following receipt of the positive provincial and federal environmental approvals. Morien is due to receive an additional $400,000 milestone payment from Vulcan upon the completion of related and pending permitting agreements for Black Point. Morien has an industry competitive royalty for the life-of-mine which is expected to continue for over 50 years.
In April 2018, Vulcan was granted a 2-year extension by the Nova Scotia provincial government for the BP Project. Vulcan indicated the target market conditions for crushed stone from the Black Point location are still short of their original expectations.
“While conditions are not yet ready for Black Point Aggregates to break ground, we maintain our strong interest in the Project,” said Frank Lieth, Vulcan’s Vice President of Black Point Aggregates Inc., a wholly owned subsidiary of Vulcan. “Although the time is not quite right to move forward, we will continue to invest in the project and work to meet the requirements outlined in the April 26, 2016, environmental approval. We are not going anywhere – we remain very much committed to the community, stakeholders, and agreements made.”
According to the conditions of the extension, Vulcan must within two years of the approval of the date of the extension (April 2020), commence work on the BP Project unless granted a further written extension by the Minister of Environment.
Morien is receiving an advanced quarterly minimum royalty payment from Vulcan of $25,000 per quarter (“Minimum Royalty”), which began in Q3 2017. All Minimum Royalty payments will be credited against future production royalties from Black Point. The Minimum Royalty is subject to annual inflationary adjustments.