Morien Resources Corp. ("Morien" or the "Company") (TSX-V:MOX),
announced today its Board of Directors (the “Board”) has made the
decision to suspend the Company’s quarterly dividend until further
notice.
The Board’s decision is based on maximizing
financial flexibility in an environment of continuing regulatory
uncertainty surrounding the fate of the Donkin Mine (“Donkin” or
the “Mine”) in Nova Scotia, owned and operated by Kameron
Collieries (“Kameron”), upon which Morien has a 2% to 4% royalty
interest.
The dividend suspension follows Kameron’s
decision on November 10, 2023, to lay off its remaining hourly
workforce at the Mine and to place the operation into an idled
state with no timeline to resume operations. This decision was made
in consideration of a four-month long Stop Work Order (“SWO”), in
effect since July 15, 2023, and still in effect at the time of
writing this news release. The SWO was put in place by the Nova
Scotia Department of Labour, Skills and Immigration (“DOL”) in
response to a roof fall incident on July 15, 2023, where no one was
injured, nor any equipment damaged. No fatalities or serious
injuries have ever resulted from roof falls at Donkin and DOL has
not received any comments from mine staff suggesting unsafe work
conditions.
Morien is of the view that a potential return to
production will not be imminent and that this is a complex and
evolving situation which will involve satisfying the conditions to
lift the current SWO, and just as importantly, the government’s
resolution of regulatory and related matters to return the mine to
long-term, stable production.
Morien continues to work diligently to advocate
for a potential return to production and will provide further
updates to its shareholders, many of whom are Nova Scotian, as to
the status of operations at the Mine, as they become available.
When the future of the Donkin Mine is better
understood, the Board will re-assess the payment of a dividend.
Pro-Donkin Rally
A rally in support of the Donkin Mine took place
in Glace Bay, Cape Breton, on November 21, 2023, in which hundreds
of people attended to show support for Kameron and the 130 miners
who have lost their jobs due to the DOL’s protracted, four-month
long SWO. Speakers at the rally included Cape Breton’s Mayor Amanda
McDougall, multiple local councillors, Liberal MLA for
Sydney-Whitney Pier, Derek Mombourquette, as well as several Donkin
miners who voiced frustration over a lack of political support for
the Mine and over the DOL’s inability to regulate the Donkin Mine
in a timely manner.
Donkin’s Economic Value
Gardner Pinfold Consultants Inc., an economics
consultancy based in Nova Scotia, which recently completed a
socio-economic impacts analysis of the Donkin Mine, concluded:
“There are very few single prospects in Nova
Scotia with the potential to provide economic impacts of this scale
and extended period.”
Kameron has spent over C$300 million developing
the Mine since 2015. Prior to the July 2023 SWO, Kameron was
employing over 130 full-time staff, a number that, at full
production, was projected to grow to approximately 250, with local
trucking and the Sydney marine export terminal accounting for an
additional 130 jobs directly affiliated with the Mine, in addition
to the hundreds of spinoff jobs that Donkin creates in the local
region. At full production, Kameron would be the 6th largest
private sector employer in Cape Breton, in a region with a 12%
unemployment rate, more than double that in Halifax Regional
Municipality1. These mining jobs pay approximately $80k per year
before bonuses and overtime2. The GDP impact to the Cape Breton
economy stemming from Donkin’s mining operations, over its
anticipated 25-year mine life, is expected to be in the order of
$1.6 billion, or an annual average GDP contribution of $52 million,
a substantial value-add to this region of Nova Scotia3.
About Morien
Morien is a Nova Scotia based, mining
development company created in 2012 to be a vehicle of direct
prosperity for Nova Scotians, its largest shareholder group. Led by
Nova Scotians, Morien’s primary assets are a royalty on the sale of
coal from the Donkin Mine in Cape Breton, Nova Scotia, and a
royalty on the sale of crushed stone from the permitted Black Point
Quarry Project, in Guysborough County, Nova Scotia. Morien’s
management team exercises ruthless discipline in managing both the
assets and liabilities of the Company. The Company’s management and
its Board of Directors consider shareholder returns to be paramount
over corporate size, number or scale of assets and industry
recognition. The Company has 51,292,000 issued and outstanding
common shares and a fully diluted position of 54,192,000. Further
information is available at www.MorienRes.com.
Forward-Looking Statements
Some of the statements in this news release may
constitute "forward-looking information" as defined under
applicable securities laws. These statements reflect Morien's
current expectations of future revenues and business prospects and
opportunities and are based on information currently available to
Morien. Morien cautions that actual performance will be affected by
a number of factors, many of which are beyond its control, and that
future events and results may vary substantially from what Morien
currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include
risks and uncertainties described in documents filed by Morien with
the Canadian securities regulators on SEDAR+ (www.sedarplus.ca)
from time to time. Morien cautions that its royalty revenue will be
based on production by third party property owners and operators
who will be responsible for determining the manner and timing for
the properties forming part of Morien’s royalty portfolio. These
third party owners and operators are also subject to risk factors
that could cause actual results to differ materially from those
predicted herein including: volatility in financial markets or
general economic conditions; capital requirements and the need for
additional financing; fluctuations in the rates of exchange for the
currencies of Canada and the United States; prices for commodities
including coal and aggregate; unanticipated changes in production,
mineral reserves and mineral resources, metallurgical recoveries
and/or exploration results; changes in regulations and
unpredictable political or economic developments; loss of key
personnel; labour disputes; and ineffective title to mineral claims
or property. There are other business risks and hazards associated
with mineral exploration, development and mining. Although Morien
believes that the forward-looking information contained herein is
based on reasonable assumptions (including assumptions relating to
economic, market and political conditions, the Company’s working
capital requirements and the accuracy of information supplied by
the operators of the properties in which the Company has a royalty
interest), readers cannot be assured that actual results will be
consistent with such statements. Morien expressly disclaims any
intention or obligation to update or revise any forward-looking
information in this news release, whether as a result of new
information, events or otherwise, except in accordance with
applicable securities laws. All dollar values discussed herein are
in Canadian dollars. Any financial outlook or future-oriented
financial information in this news release, as defined by
applicable securities laws, has been approved by management of
Morien as of the date of this news release. Such financial outlook
or future-oriented financial information is provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that such outlook or information should not be used for
purposes other than for which it is disclosed in this news
release.
Third-Party Information
Except where otherwise stated, the disclosure in
this press release relating to properties and operations on the
properties in which the Company holds royalty interests is based
primarily on information disclosed by the owners or operators of
these properties publicly or directly to the Company and
information available in the public domain. As a royalty holder,
the Company has limited, if any, access to properties included in
its royalty portfolio. The Company is dependent on the operators of
the properties to provide information to the Company or on publicly
available information to prepare required disclosure pertaining to
properties and operations on the properties on which the Company
holds royalty interests and generally has limited or no ability to
independently verify such information. Additionally, the Company
occasionally receives operating information from the owners and
operators of these properties which it is not permitted to disclose
to the public. Although the Company does not have any knowledge
that such information may not be accurate, there can be no
assurance that such information is complete or accurate.
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.
For more information, please
contact:
Dawson Brisco, President & CEOPhone: (902)
403-3149dbrisco@MorienRes.comorJohn P.A. Budreski, Executive
ChairmanPhone: (416) 930-0914
www.MorienRes.com
____________________1 Statistics Canada,
Regional unemployment rates for October 20232 Statistics Canada,
Labour productivity and related measures by business sector; Total
compensation per hour worked for Coal Mining in Nova Scotia, 2022
data3 Gardner Pinfold Socio-Economic Impact Analysis of the Donkin
Coal Mine, August 2020
Morien Resources (TSXV:MOX)
Historical Stock Chart
From Jul 2024 to Aug 2024
Morien Resources (TSXV:MOX)
Historical Stock Chart
From Aug 2023 to Aug 2024