Morien Provides Update on Donkin Mine
Morien Provides Update on Donkin Mine
August 1, 2018 – Halifax, Nova Scotia – Morien Resources Corp. ("Morien" or the
"Company") (TSXV:MOX), is pleased to announce 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 successfully arranged a coal offtake agreement (“Agreement”) with local power
utility, Nova Scotia Power Inc. , to supply a portion of Donkin coal production to Nova Scotia
Power’s nearby Lingan Generating Station for the next several years. All other details regarding
the Agreement remain confidential.
Morien’s Donkin Royalty
Morien owns a gross production royalty of 2% on the first 500,000 tonnes of coal sales 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 quarterl y basis over the anticipated 30 -plus
year mine life.
Production at Donkin commenced in Q2 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. The majority of
Donkin production is currently exported into the seaborne thermal and metallurgical coal
markets. 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 values 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
incurs general and administrative expenses which are necessary for the collection of the
aforementioned royalties. See the advisory below regarding Forward-Looking Statements.
* 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 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 Instrument 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 Q1 2017 and the Black Point Aggregate Project was permitted in Q2
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 53,451,114 issued
and outstanding common shares and a fully diluted position of 57,893,614. 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 perfor mance 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) on March 1, 2017 . 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 a re 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 explor ation 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 exp loration, 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 d isclaims 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 outl ook 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 purpos es 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, Chairman and CEO
Phone: (416) 930-0914
or
Dawson Brisco, P.Geo, President
Phone: (902) 403-3149
www.MorienRes.com