Morien Resources Corp. (TSX VENTURE: MOX) announced Jan. 13 that it has entered into a definitive purchase and sale agreement with Kameron Collieries ULC, an affiliate of The Cline Group LLC, for the sale of Morien’s 25% interest in the Donkin Coal Project in Cape Breton, Nova Scotia.
Kameron, founded by U.S.-based coal operator Crhis Cline, currently holds a 75% interest in the undeveloped Donkin coal mine, having acquired it from international commodities producer and trader Glencore PLC on Dec. 3, 2014.
A special meeting of Morien shareholders will be held on Feb. 10 to vote on authorizing the transaction. Pursuant to the terms of the agreement, Kameron has agreed to pay Morien aggregate cash consideration of C$5.5m; C$2m on closing, C$2m on or before the 2nd anniversary of closing, and C$1.5m on or before the 3rd anniversary of closing. Morien is also entitled to 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.
Morien is a Canadian mining exploration and development company, focussed on unique mineral industry opportunities in North America. The Donkin project is fully permitted, including approval for construction of an on-site barge-loading facility to access deep tidewater in Cape Breton. Approximately C$43m has been invested in the coking coal project since 2006, including C$15m by Morien.