Erdene Resource Development Corp. (TSX: ERD) and Advanced Primary Minerals Corp. (TSX VENTURE: APD) said Oct. 26 that their shareholders at separate meetings that day approved a deal where a newly-named entity will take over Erdene assets, including a share of a coal mining project in Nova Scotia.
At the special shareholder meetings, a plan of arrangement was approved. Under the arrangement, Erdene will separate its North American projects, consisting primarily of its 25% interest in the Donkin Coal Project, from its Mongolian metals exploration projects, which will stay within Erdene. The Donkin Coal Project will become the major asset of a new amalgamated company to be called Morien Resources Corp. Morien is to be listed on the TSX Venture Exchange under the symbol MOX. Erdene will continue under the same name and trading symbol.
Although the arrangement was approved by the shareholders of Erdene and APM, it will not be effective until it is approved by the Supreme Court of Nova Scotia and final approvals are received from the Toronto Stock Exchange and the TSX Venture Exchange. It is expected these approvals will be obtained within the next ten days.
The 75% owner of Donkin, international miner Xstrata plc, has said it wants to sell that stake as it focuses on other priorities, including a major strip coal mining development project in British Columbia.
The planned Donkin mine would work from old entries on land on Cape Breton Island in Nova Scotia under the floor of the Atlantic Ocean. Operations would include multiple continuous-miners producing about 3.6 million tonnes per year of raw, run-of-mine coal. A new coal handling and processing plant would produce about 2.75 million tonnes per year of clean coal for international coking coal markets as well as international and domestic thermal coal markets.