Morien Receives First Minimum Royalty Payment from Vulcan Materials
October 4, 2017 – Halifax, Nova Scotia – Morien Resources Corp. (“Morien” or the “Company”) (TSXV:MOX), today announced that it has received its first minimum royalty payment of C$25,000 from Vulcan Materials Company (“Vulcan”), the owner of the Black Point Aggregate Project (“Black Point”) in Guysborough County, Nova Scotia.
Morien is entitled to receive from Vulcan a C$25,000 payment per quarter, beginning on September 30, 2017, until sales commence or until Vulcan’s Option to Lease or Lease on Black Point is terminated (“Minimum Royalty”). The Minimum Royalty shall be increased or decreased annually in accordance with changes to the PPI*, commencing July 1, 2018. All Minimum Royalty payments shall be credited against future production royalty payments payable to Morien.
* PPI: US Bureau of Labour Statistics Producer Price Index for crushed and broken granite.
About Black Point
Vulcan, the United States’ largest producer of construction aggregates, purchased Morien’s rights to Black Point in Q2-2014 for milestone payments totalling $1.8 million and an industry competitive production royalty payable on all material sold from Black Point over the estimated 50-year life of the mine. The first milestone payment of $1,000,000 was paid on signing of the agreement, a second payment of $400,000 was paid following the receipt of positive provincial and federal environmental approvals for Black Point, and a final $400,000 payment is due upon the completion of related and pending permitting agreements for Black Point. Upon commencement of aggregate production, the production royalty payable to Morien is projected to provide annual revenues between $100,000 and $750,000.
The provincial and federal environmental approvals for Black Point were granted to Vulcan in Q2-2016 and provided the terms and conditions for the development of a large-scale, bulk tonnage construction aggregates operation along the southern shore of Chedabucto Bay in Guysborough County, Nova Scotia, for export via ocean going vessels, to the U.S. Eastern Seaboard and Caribbean markets.
Morien is a Canadian mining exploration and development company, focused on unique mineral industry opportunities in North America with a strong cash position and two, long-life royalty assets in Nova Scotia, Canada; the Donkin Coal Mine which entered production in Q1-2017; and the Black Point Aggregate Project which is recently permitted and progressing toward a development decision. Morien has 53,947,864 issued and outstanding common shares and a fully diluted position of 57,614,614. Further information is available at www.MorienRes.com.
Some of the statements in this news release may constitute “forward-looking information” as defined under applicable securities laws. These statements reflect Morien’s current expectations of future revenues and business prospects and opportunities and are based on information currently available to Morien. Morien cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Morien currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in Morien’s annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com). Morien cautions that its royalty revenue will be based on production by third party property owners and operators who will be responsible for determining the manner and timing for the properties forming part of Morien’s royalty portfolio. These third party owners and operators are also subject to risk factors that could cause actual results to differ materially from those predicted herein including: volatility in financial markets or general economic conditions; capital requirements and the need for additional financing; fluctuations in the rates of exchange for the currencies of Canada and the United States; prices for commodities including gold, coal and aggregate; unanticipated changes in production, mineral reserves and mineral resources, metallurgical recoveries and/or exploration results; changes in regulations and unpredictable political or economic developments; loss of key personnel; labour disputes; and ineffective title to mineral claims or property. There are other business risks and hazards associated with mineral exploration, development and mining. Although Morien believes that the forward-looking information contained herein is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Morien expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. All dollar values discussed herein are in Canadian dollars. Any financial outlook or future-oriented financial information in this news release, as defined by applicable securities laws, has been approved by management of Morien as of the date of this news release. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
John P.A. Budreski, President and CEO
Phone: (416) 930-0914
Dawson Brisco, P.Geo, VP Corporate Development
Phone: (902) 466-7255