Morien Resources Corp. has announced the receipt of the first royalty payment from Kameron Collieries ULC (Kameron), an affiliate of the Cline Group LLC, and owner/operator of the Donkin Coal Mine (Donkin) in Cape Breton, Nova Scotia. Although nominal in value, the payment signals the commencement of Donkin coal sales to third parties. This royalty payment covers the period from April 1 to 30 June, 2017.
Morien royalty and milestone payment
Morien owns a gross production royalty of 2% on the first 500 000 t of coal sales per calendar quarter (excluding the initial 10 000 t of coal produced and sold from Donkin) and 4% on any coal sales from quarterly tonnage above 500 000 t (Royalty). The Royalty is payable to Morien on a quarterly basis over the anticipated 30 plus year mine life.
Morien is entitled to receive its third and final milestone payment of US$1.5 million from Kameron on the earlier of first commercial sale of export coal from Donkin and the third anniversary of the closing of the transaction ( 27 February, 2018).
Read the article online at: https://www.globalminingreview.com/finance-business/20072017/morien-announces-receipt-of-the-first-royalty-payment-from-the-donkin-mine/