NOVA SCOTIA – Two weeks ago Morien Resources Corp. was given notice that its partner in the Donkin coal project on Cape Breton wished to dispose of its 75% interest in the project. Because Morien held a right of first refusal, Glencore had to give Morien the opportunity to take up the balance of the project before selling it to a third party.
Morien has since waived its right, saying that the quality of the proposed buyer, the Cline Group LLC, will “provide great synergy” for Donkin movng forward. Cline, headed by philathropist and businessman Chris Cline, is a US-based company that operates several coal mines in Illinois through its Foresight Energy (ForesightEnergy.com) subsidiary.
Morien and Glencore have invested $43 million in Donkin project since 2006, and it is fully permitted. It is located less than 30 km from the deep water port in Sydney, NS. The sale to Cline is dependent on customary conditions including regulatory approval and an okay from the province of Nova Scotia.
Both a corporate presentation and fact sheet about the Donkin coal project are posted at MorienRes.com.