Coal processing given green light at Cape Breton’s Donkin mine (Halifax Chronicle Herald – September 12, 2017)

Kameron Collieries ULC, the owner of the Donkin Coal Mine in Cape Breton, has started operating its coal handling, preparation and processing plant or washplant.

Morien Resources Corp. of Dartmouth, a former part-owner of the Donkin project, put out a release Monday stating that it received notice from Kameron that its washplant was operational.

Morien owns a gross production royalty of two per cent on the first 500,000 tonnes of coal sales per quarter, excluding the initial 10,000 tonnes of coal produced and sold from Donkin and four per cent on any coal sales from quarterly tonnage above 500,000 tonnes.

Morien is entitled to receive its third and final milestone payment of $1.5 million from Kameron on the first commercial sale of export coal from Donkin, or, on Feb. 27, 2018, which is the third anniversary of the closing of the transaction between Morien and Kameron — whichever comes first.

After the final milestone payment, the royalty is payable to Morien on a quarterly basis over the expected 30-year life of the mine. Morien indicated the washplant has the capacity to process the permitted production at Donkin.

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