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. In May 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, April 2020, and April 2022, Vulcan was granted two-year extensions by the Nova Scotia Department of Environment for the BP Project. According to the conditions of the extensions, Vulcan must within two years of the approval of the date of the last extension (April 2024), commence work on the BP Project unless granted a further written extension by the Department of Environment.
In May 2022, Frank Lieth, Vulcan’s Vice President of Black Point Aggregates Inc., a wholly owned subsidiary of Vulcan, reaffirmed Vulcan’s commitment to Black Point – “While conditions are not yet ready for Black Point Aggregates to break ground, we maintain our strong interest in the Project. The target market conditions for crushed stone from the Black Point location are still short of our original expectations. 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 2016 environmental approval. We are not going anywhere – we remain very much committed to the community, stakeholders, and agreements made.”
Since Q3 2017, Morien has received an advanced minimum royalty payment of $25,000 per quarter from Vulcan, subject to annual inflationary adjustments according to the Producer Price Index for crushed stone17. All advanced payments are recorded by Morien as unearned revenue and will be credited against future production royalties from Black Point.
Vulcan Materials Company (“Vulcan”), the United State’s largest producer of construction aggregates, purchased Morien’s rights to the Black Point Aggregate Project in Q2 2014 (click here for press release).
The proposed Black Point Project (“Project”) consists of the development and operation of a construction aggregate quarry and marine terminal in Guysborough County, Nova Scotia. The Project consists of quarry development and aggregate production on an undeveloped, 354 hectare property, along with the construction and operation of a marine terminal adjacent to the quarry in Chedabucto Bay. Processed aggregate will be off-loaded into Panamax size bulk carriers and transported to ports along the eastern and Gulf coast of the United States and potentially to markets in Canada and the Caribbean.
Black Point’s positive attributes include:
* In the United States market, the majority (80% or more) of aggregates are transported by truck from the quarry to the consumer. This form of transport is expensive and limits the typical aggregate operation to a market radius of about 80 kilometres from the quarry. The south eastern United States aggregate market is a prime target for bulk vessel transported aggregate due in part to the geologic absence of suitable aggregate resources in coastal areas.
For more information on the Black Point Project, please visit the Black Point Quarry website (maintained by Vulcan Materials) by clicking here – www.blackpointquarry.com.