Morien Announces the Commencement of the Washplant at Donkin Coal Mine
Morien Announces the Commencement of the Washplant at Donkin
Coal Mine
September 11, 2017 – Halifax, Nova Scotia – Morien Resources Corp. ("Morien" or the
"Company") (TSXV:MOX), is pleased to announce that it has received notice from
Kameron Collieries ULC (“Kameron”), the owner/operator of the Donkin Coal Mine
(“Donkin”) in Cape Breton, Nova Scotia, that its coal handling, preparation and processing
plant (“washplant”) is now operational.
The capacity of the washplant is sufficient to process the permitted production at Donkin.
Processed Donkin coal product can be sold either as a low ash, high-energy thermal coal
and/or as a high quality metallurgical coal. Kameron has indicated that it expects the washed
coal quality of Donkin to be a high fluidity, high volatile metallurgical coal, with 3.0% ash,
approximately 1.65% sulphur, 13,500+ BTU/lb, 0.88% RO, +25,000 ddpm fluidity, and 120-
150 dilation.
Kameron is targeting production of approximately 350,000 to 450,000 tonnes in 2017, 1.2 to
1.8 million tonnes in 2018, and 2.6 to 2.75 million tonnes of saleable coal in 2019 (production
volumes are subject to change based on numerous market and non-market factors). Current
coal production is being stockpiled on site, and trucked and stockpiled at the Provincial
Energy Ventures port in Sydney, Cape Breton where it awaits export.
* The Donkin Coal Technical Report, dated November 2012, found on Morien’s SEDAR profile,
supports the above technical disclosures. The Technical Report presents the results of a Pre-
Feasibility Study on the Donkin Project and the reserves defined by the Pre-Feasibility Study prepared
by Xstrata Coal Pty Ltd. Production assumptions are based on Probable Reserves of 58 million
tonnes. The Reserve estimate is based on an Indicated Resource of 174 million tonnes.
Morien Royalty and Milestone Payment
Morien owns a gross production royalty of 2% on the first 500,000 tonnes of coal sales per
calendar quarter (excluding the initial 10,000 tonnes of coal produced and sold from Donkin)
and 4% on any coal sales from quarterly tonnage above 500,000 tonnes (“Royalty”). The
Royalty is payable to Morien on a quarterly basis over the anticipated 30 plus year mine life.
Morien is entitled to receive its third and final milestone payment of $1.5 million from
Kameron on the earlier of first commercial sale of export coal from Donkin and the third
anniversary of the closing of the transaction (February 27, 2018).
About Morien
Morien is a Canadian mining exploration and development company, focused on unique
mineral industry opportunities in North America with two long-life royalty assets and a strong
cash position. Morien has 53,064,614 issued and outstanding common shares and a fully
diluted position of 57,614,614. Further information is available at www.MorienRes.com.
Forward-Looking Statements
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 o perators 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
or
Dawson Brisco, P.Geo, VP Corporate Development
Phone: (902) 466-7255
www.MorienRes.com