While Glencore has refused to disclose the sale price of its 75% stake of the project to Cline subsidiary Kameron Collieries last month, Toronto-listed Morien Resources Corporation has recently agreed to sell its 25% stake for $C5.5 million cash over three staged payments.

Morien said it also struck conditions to receive a gross production royalty of 2% on the first 500,000 tonnes of coal sales per quarter, and 4% on any coal sales from quarterly tonnage above 500,000 tonnes.

The Canadian company will host a special shareholders meeting over the deal on February 10.

Donkin is expected to produce about 3.6 million tonnes annually, probably from longwall and continuous miner operations, for a projected 30-year lifespan.

The project received approval from Nova Scotia Environment Minister Sterling Belliveau in July.

While Cline’s main underground coal exposure is through its stake of New York-listed longwall miner Foresight Energy, it recently poached Alpha Natural Resources president Paul Vining.

Alpha said Vining was leaving on January 31 to accept a CEO position with a Cline Group affiliate – presumably Kameron.

Alpha also said this Cline company “will be focused on the acquisition and operation of coal mines outside the United States”