NOVA SCOTIA – Morien Resources Corp. of Halifax has signed a letter of intent for a coal off-take agreement for the production of the Donkin coal mine in Cape Breton. A memorandum of understanding has also been signed with an unnamed operating partner with the intent of establishing a joint venture.
Morien is required to finalize the two agreements as a condition of operator and 75% owner Glencore Xstrata selling its interest in the project. During the transition period, Glencore is reducing expenditures at the site, and the adits have been secured for a new operator.
John Budreski, CEO of Morien said in a statement, "This is a win-win for all parties involved. We believe we have partnered with a first class operator and secured a very solid sales base with an off-take partner and are pleased we can readily assist Glencore with its objective of providing a qualified operating partner to assume its interest and advance the Donkin project to production. We look forward to working with Glencore to arrange reasonable terms for the purchase and transfer of its ownership."
The Donkin project has 227 million indicated tonnes and 254 inferred tonnes of resources. Coal will be mined during development at a rate of 2,000 t/d, and when mining reaches full capacity, 3.1 million tonnes of coal annually will be produced.
Learn more at MorienRes.com.
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