Morien Resources Corp. (TSX VENTURE:MOX) announced Aug. 11 that it has received notice from international commodities producer Glencore of the intended sale of Glencore’s 75% interest in the Donkin Coal Project in the Canadian province of Nova Scotia.
An arms-length third party has agreed to terms with Glencore for the purchase of all of Glencore’s interests in the Donkin Coal Project, including all Donkin-related property, rights, entitlements and undertakings of Glencore. The terms include industry standard conditions, including the requirement that all necessary regulatory approvals are received.
Under a right of first refusal clause in the Donkin Joint Venture Agreement between Glencore and Morien, Glencore has now offered to sell these same assets to Morien, at the same price and on the same terms and conditions as agreed with the unnamed third party. If Morien does not act on that offer within 60 days, Glencore will be entitled to complete the sale to the third party.
Morien said it is now reviewing the terms agreed to between Glencore and the third party and will decide in due course whether it wishes to exercise the first-refusal right.
Morien is a non-operating royalty and minority interest investment company focused on the mining industry. Morien holds a 25% minority interest in Donkin, which is one of the largest undeveloped coal deposits in North America, located within 30 kilometers of a deep water port in Sydney, Nova Scotia. This deep mine would involve access to the coal reserve via entries on land, with most mining done under the nearby Atlantic Ocean. Mining of this reserve has been done that way in the past, so it is feasible to do so.