Morien Resources Corp.
TSX VENTURE : MOX
April 14, 2014 11:25 ET
HALIFAX, NOVA SCOTIA--(Marketwired - April 14, 2014) - Morien Resources Corp. ("Morien" or the "Company") (TSX VENTURE:MOX), is pleased to announce it has entered into agreements ("Agreements") with Vulcan Materials Company ("Vulcan") and the Municipality of the District of Guysborough ("MODG") for the development of the Company's Black Point Marine Aggregate Project ("Black Point" or the "Project") in Guysborough County, Nova Scotia. Vulcan is the largest producer of construction aggregates in North America with over 340 operating facilities concentrated in 18 states, the Bahamas and Mexico.
Under the terms of the Agreements, Vulcan will assume Morien's interest in Black Point and will become manager and operator of the Project in exchange for reimbursing Morien for previous expenditures on the Project through milestone payments totaling $1,800,000, and a royalty stream payable on all material sold from the Project over the life of the mine. The first payment of $1,000,000 is due on signing, and a second payment of $800,000 is due upon the approval and receipt of all environmental permitting necessary for the mining and shipping of aggregate from the Project. With these milestone payments, Morien has secured funding that will support the Company's activities into 2015 and a royalty stream that could be a source of long term cash flow for the Company. Since its separation from Erdene Resource Development Corp. in November 2012, Morien has continued to execute its business plan, including the sale of its non-core assets, and now the structuring of a favourable deal for all stakeholders on one of its core projects.
Vulcan's participation in the Black Point Project brings a world-class international company to Nova Scotia which, with the completion of the necessary permitting, market evaluation and feasibility studies, could lead to the creation of many jobs and provision of tax revenue for the province.
The Project consists of the development and operation of a construction aggregate quarry and an associated marine terminal adjacent to the quarry, along the south shore of Chedabucto Bay in Guysborough County, Nova Scotia. The Project is ideally situated with a large volume of high- quality granite located on deep, ice-free water, to enable construction of a deep water marine terminal for aggregates shipments to markets along the eastern and Gulf coasts of the U.S. and potentially to eastern Canada.
"Having completed these Agreements, Morien has secured financing without any dilution to its shareholders and can now turn its fullest attention to advancing and creating value in the Donkin Coal Project in Cape Breton, Nova Scotia," said John Budreski, Morien's President and CEO. "Morien would like to thank both the Municipality of the District of Guysborough and the people of the region for their support for this Project. As a Nova Scotian company, Morien looks forward to seeing the potential of this Project un-locked and the creation of additional long-term employment for the people of the Guysborough and Canso region."
Morien and Vulcan will host an Open House session at the Chedabucto Fire Hall in Queensport, Guysborough County, Nova Scotia on April 22, 2014 from 3:00 to 7:00 pm to inform the surrounding community of Project plans. Details regarding the Black Point Aggregate Project are available on the Canadian Environmental Assessment Agency's website (click here) and on Morien's website (click here).
Morien is a Canadian company focused on creating value through the identification, acquisition and advancement of strategically located projects that host commodities with strong market fundamentals. Its principal asset is a 25% interest in the Donkin Coal Project in Nova Scotia. Morien has 49,256,240 issued and outstanding common shares and a fully diluted position of 53,211,240. Further information is available at www.morienres.com.
This news release may contain forward looking statements based on assumptions and judgments from management regarding future events or results that may prove to be inaccurate as a result of exploration, development and other risk factors.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.