Morien Waives ROFR on Donkin Coal Project
For Immediate Release
August 25th, 2014 – Halifax, Nova Scotia – Morien Resources Corp. (“Morien” or the “Company”) (TSXV:MOX), today announced it has waived its Right of First Refusal (“ROFR”) with respect to the proposed sale by Glencore of its 75% interest in the Donkin Coal Project (“Donkin” or the “Project”) in Cape Breton, Nova Scotia. The corporation offering to purchase the Glencore interest is an affiliate of The Cline Group, LLC (“Cline”), a private resource development company. The Cline Group’s US coal company, Foresight Energy LP, is one of the largest coal companies in the United States and well known for its underground mining expertise.
“The decision by our Board to waive our right of first refusal was predicated on the quality of the partner. The Cline Group has a strong reputation as a high quality mine developer and operator. Their development experience in both continuous miner and longwall mining and growing market exposure for similar quality product to the Donkin mine provide great synergy,” said John Budreski, Morien’s CEO. “Cline and Morien will now work with all stakeholders to ensure conditions are met to bring this arrangement to a successful conclusion. We look forward to entering a new phase of the Donkin Project with a new, high quality partner.”
Following Morien waiving its ROFR, Glencore will now be entitled to complete the sale of its 75% interest in the Project, subject to regulatory approval. Morien recognizes The Cline Group as a reputable, capable operator which has the potential to establish a safe, efficient and viable long-term operation in Cape Breton. Cline and Morien will now advance discussions with the Province of Nova Scotia to expeditiously reach agreements that are satisfactory to all parties to ensure the Project moves forward to commercial production.
In a press release issued on August 11th, 2014, Morien announced that a third party had agreed to terms with Glencore for the purchase of the entirety of Glencore’s interests in the Donkin Coal Project, including all Donkin-related property, rights, entitlements and undertakings of Glencore (click here to read press release). In accordance with the Donkin Joint Venture Agreement, the terms and conditions of this offer may not be disclosed to any other third party. The terms include industry standard conditions, including the requirement that all necessary regulatory approvals are received, including approval from the Province of Nova Scotia.
Morien is a non-operating royalty and minority interest investment Company focussed on the mining industry. The Company is focussed on unique mineral industry opportunities in North America with current interests in:
Donkin Coal Project: Morien holds a 25% minority interest, with a $9 million carried interest, in one of the largest undeveloped coal deposits in North America. The Project is fully permitted and is located within 30 kilometres of a deep water port in Sydney, Nova Scotia. Approximately $43 million has been invested in the Donkin Coal Project since 2006, including $15 million by Morien.
Black Point Aggregate Project: Vulcan Materials Company, the United State’s largest producer of construction aggregates, purchased Morien’s rights to the Black Point Aggregate Project in Q2 2014 and is currently permitting the Project for eventual production within the 2018 to 2020 period. Morien received $1 million in payments from Vulcan on signing, and is entitled to receive an additional payment of $800,000 on the successful environmental permitting of the Project, anticipated in Q3 2015. Morien and Vulcan are working jointly towards the successful completion of the Environmental Assessment process. Morien has an industry competitive royalty for the life of mine which is expected to continue for over 50 years.
Banks Island Gold Project: Morien holds a 1.5% NSR Royalty over the marketable metal, ores, minerals and concentrates produced and shipped from a 1,987 hectare area within the Yellow Giant Gold property located 105 kilometres south of Prince Rupert, British Columbia.
U.S.A. Industrial Mineral Interests: Morien holds various direct and in-direct interests in industrial mineral properties in the United States.
Morien Resources Corp. is a Canadian company focused on creating value through the identification, acquisition and advancement of non-operating royalty and minority interests in strategically located projects that host commodities with strong market fundamentals. Its principal asset is a 25% interest in the Donkin Coal Project in Nova Scotia. Morien has 49,256,240 issued and outstanding common shares and a fully diluted position of 52,886,240. 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.
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, Manager Corporate Development
Phone: (902) 466-7255