NOVA SCOTIA – Morien Resources Corp. of Halifax is giving up its 25% working interest in the Donkin coal project in Cape Breton.
Kameron Collieries, a subsidiary of private coal miner The Cline Group, recently purchased Glencore‘s 75% interest in the project. Kameron has agreed to pay $5.5 million in cash and a production royalty on coal sales. It will also pay Morien a gross royalty of 2% on the first 500,000 tonnes per calendar quarter and 4% on any tonnage thereafter. Kameron
Morien has also entered into a private placement with Atlantic Royalty, another Cline subsidiary, and will issue 3.45 million Morien shares at $0.30 per share for gross proceeds of $1.04 million. The price represents a 58% premium over Morien’s 10 day volume weighted average price.
A shareholder meeting will be called in February 2015 to approve the transaction. Visit MorienRes.com for more information.