Morien Provides Update on Donkin Coal Mine
Morien Provides Update on Donkin Coal Mine
August 30, 2018 – Halifax, Nova Scotia – Morien Resources Corp. ("Morien" or the
"Company") (TSXV:MOX), today announced that Kameron Collieries ULC, an affiliate
of The Cline Group LLC, and owner/operator of the Donkin Coal Mine (“Donkin”) in
Cape Breton, Nova Scotia, has announced plans for geotechnical drilling on the southern
peninsula of Morien Bay, adjacent to the Donkin Mi ne headland, to test the seafloor for
its ability to support a marine export facility to move coal by vessel. Approval for the
terminal was granted as part of the positive environmental assessment decision from the
Federal and Provincial governments in 20 13. Kameron will make a capital decision on
construction of the terminal project pending additional studies.
Morien’s Donkin Royalty
Morien owns a gross production royalty for the Donkin Coal Mine (“Donkin”) of 2% on
the first 500,000 tonnes of coal sal es per calendar quarter 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.
Production at Donkin commenced in 2017 and is expected to rise to the permitted
production rate of 2.75 million sales tonnes per year over a three to four year period.
Kameron recently arranged a coal offtake agreement with local power utility, Nova
Scotia Power Inc., to supply a portion of Donkin coal production to Nova Scotia Power’s
Lingan Generating Sta tion, 30 km northwest of Donkin, for the next several years, with
the remainder of Donkin coal production exported into the seaborne thermal and
metallurgical markets via a coal export terminal located in Sydney, Cape Breton , 30 km
west of Donkin . Using a broad range of coal pricing (C$55 to $115 per tonne) , annual
royalty payments could be in the order of C$4.0 million to $8.0 million at full production.
These valu es are only estimates based on Q2 2018 assumptions made by Morien
management, and would be achieved only when Donkin reaches permitted production
levels. Actual results and royalties received, if any, may vary from those considered by
Morien management. As a public company, Morien incu rs general and administrative
expenses that are necessary for the collection of the aforementioned royalties. S ee the
advisory below regarding Forward-Looking Statements.
* The Donkin Coal Technical Report, dated November 2012, found on Morien’s SEDAR pro file,
supports the above technical disclosures. The Technical Re port presents the results of a Pre-
Feasibility Study on the Donkin Mine 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.
Qualified Person
Dawson Brisco, P.Geo. (Nova Scotia), President, is a Qualified Person as that term is
defined in National Instru ment 43-101 and has reviewed and approved the scientific and
technical information contained in this news release.
About Morien
Morien is a Canadian based, dividend paying, mining development company that holds
royalty interests in two , long life, world class, tidewater accessed projects. The Donkin
Coal Mine commenced production in 2017 and the Black Point Aggregate Project was
permitted in 2016 and is progressing toward a development decision . Morien’s
management team exercises ruthless discipline in managing both the assets and liabilities
of the Company. The Company’s management and its Board of Directors consider
shareholder returns to be paramount over corporate size, number or scale of assets and
industry recognition. Morien has 54,132,614 issued and outstanding common shares and
a fully diluted position of 56,560,114. 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 av ailable 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 ca use 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 SEDA R
(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. The se
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 ne ed 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, m etallurgical 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 an d 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 t his 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, CEO and Chairman
Phone: (416) 930-0914
or
Dawson Brisco, P.Geo, President
Phone: (902) 403-3149
www.MorienRes.com