Morien Receives $1.5 Million Milestone Payment and Provides Update on Donkin Mine
Morien Receives $1.5 Million Milestone Payment and Provides Update
on Donkin Mine
December 11, 2017 – Halifax, Nova Scotia – Morien Resources Corp. ("Morien" or the
"Company") (TSXV:MOX), is pleased to announce that it has received $1.5 million from
Kameron Collieries ULC (“Kameron”) , an affiliate of The Cline Group LLC, and
owner/operator of the Donkin Coal Mine (“Donkin”) in Cape Breton, Nova Scotia.
This final milestone payment was triggered by the first commercial sale of export coal from
Donkin. Morien has a gross production royalty of 2% to 4% on all coal sales from Donkin.
Donkin Mine Update
Kameron commenced production at Donkin in Q1 2017, and commissioned a coal handling,
preparation and processing plant (“washplant”) in Q3 2017, with sufficient capacity to process
the permitted production volumes at Donkin of 2.75 million sales tonnes per year.
Kameron’s previous production guidance for Donkin included reaching full production over a
three year period. In response to changing mining conditions, Kameron is developing a new
mine plan for Donkin and additionally has ordered new mining equipment, both of which require
regulatory approvals from the Nova Scotia provincial government. While production at Donkin
continues, the timing of these approvals is unknown at present and may delay the rate of
production increases. Should Kameron’s production schedule change, Morien management will
provide revised guidance for 2018 and 2019 production volumes when supporting information
becomes available, which could be materially different from prior guidance.
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 quarterly basis over the anticipated 30 plus
year mine life.
Production at Donkin is expected to rise to the permitted production rate of 2.75 million sales
tonnes per year over a three to four year period. Using a 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 judgments made by Morien personnel,
and would be achieved only when the Project commences and reaches maximum permitted
production levels. Actual results and royalties received, if any, may vary from those considered
Morien personnel (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 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. The received royalty estimates for
Donkin are only estimates based on Q4 2017 assumptions that Morien management consider to be
reasonable.
Qualified Person
Dawson Brisco, P.Geo. (Nova Scotia), Vice President Corporate Development, 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 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 was recently permitted and is progressing toward a
development decision. Morien has 54,402,614 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 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 ma rkets 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