Morien receives first minimum royalty payment from Vulcan Materials
Published by Louise Mulhall,
Editorial Assistant
World Coal,
Morien Resources Corp. has announced that it has received its first minimum royalty payment of CAN$25 000 from Vulcan Materials Company, the owner of the Black Point Aggregate Project in Guysborough County, Nova Scotia.
Morien Resources Corp. has announced that it has received its first minimum royalty payment of CAN$25 000 from Vulcan Materials Company, the owner of the Black Point Aggregate Project in Guysborough County, Nova Scotia.
Morien is entitled to receive from Vulcan a CAN$25 000 payment per quarter, beginning on 30 September, 2017, until sales commence or until Vulcan's Option to Lease or Lease on Black Point is terminated (Minimum Royalty). The Minimum Royalty shall be increased or decreased annually in accordance with changes to the PPI*, commencing 1 July, 2018. All Minimum Royalty payments shall be credited against future production royalty payments payable to Morien.
* PPI: US Bureau of Labour Statistics Producer Price Index for crushed and broken granite.
About Black Point
Vulcan, largest producer of construction aggregates in the US, purchased Morien's rights to Black Point in 2Q14 for milestone payments totalling US$1.8 million and an industry competitive production royalty payable on all material sold from Black Point over the estimated 50-year life of the mine. The first milestone payment of US$10 00 000 was paid on signing of the agreement, a second payment of US$400 000 was paid following the receipt of positive provincial and federal environmental approvals for Black Point, and a final US$400 000 payment is due upon the completion of related and pending permitting agreements for Black Point. Upon commencement of aggregate production, the production royalty payable to Morien is projected to provide annual revenues between US$100 000 and US$750 000.
The provincial and federal environmental approvals for Black Point were granted to Vulcan in 2Q16 and provided the terms and conditions for the development of a large-scale, bulk tonnage construction aggregates operation along the southern shore of Chedabucto Bay in Guysborough County, Nova Scotia, for export via ocean going vessels, to the U.S. Eastern Seaboard and Caribbean markets.
Read the article online at: https://www.worldcoal.com/mining/05102017/morien-receives-first-minimum-royalty-payment-from-vulcan-materials/
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