Cline Group Affiliate to Buy Glencore’s Interest in Donkin Coal Project

Morien Resources Corp. (TSXV:MOX) announced that it has waived its right of first refusal regarding Glencore plc’s (LSE:GLEN) proposed sale of its 75-percent interest in the Donkin coal project in Nova Scotia.

According to the company, an affiliate of The Cline Group LLC has offered to buy Glencore’s interest.

As quoted in the press release:

Following Morien waiving its ROFR, Glencore will now be entitled to complete the sale of its 75% interest in the Project, subject to regulatory approval. Morien recognizes The Cline Group as a reputable, capable operator which has the potential to establish a safe, efficient and viable long-term operation in Cape Breton. Cline and Morien will now advance discussions with the Province of Nova Scotia to expeditiously reach agreements that are satisfactory to all parties to ensure the Project moves forward to commercial production.

John Budreski, Morien’s CEO, commented:

The decision by our Board to waive our right of first refusal was predicated on the quality of the partner. The Cline Group has a strong reputation as a high quality mine developer and operator. Their development experience in both continuous miner and longwall mining and growing market exposure for similar quality product to the Donkin mine provide great synergy. Cline and Morien will now work with all stakeholders to ensure conditions are met to bring this arrangement to a successful conclusion. We look forward to entering a new phase of the Donkin Project with a new, high quality partner.

Click here to read the full Morien Resources Corp. (TSXV:MOX) press release.