Graymont Ltd of Richmond, BC has welcomed the approval by the Michigan Department of Natural Resources (DNR) of its Land Transaction Application, which involves the sale and exchange of lands within Mackinac and Luce Counties. Last year, the company submitted a proposal to DNR to acquire more than 10,000 acres of land near the town of Rexton for the purpose of developing a limestone mine. Graymont says the Rexton project will involve limestone quarrying and, eventually, limestone processing operations. The transaction includes the direct sale of 1,781 acres of state-owned land and 7,026 acres of mineral rights to Graymont; a land exchange whereby Graymont will acquire 830 acres of state-owned land; and a ten-year option secured by Graymont to acquire an easement over a maximum of 55 acres of state-owned land within an identified area of 535 acres. The total value of land rights involved in the transaction is more than US$4.5 million. Graymont will also pay a royalty on the extracted limestone and dolomite at a rate of 30 cents/ton. In addition, to ensure economic benefit to the region, Graymont has agreed to create a regional economic development fund. The company will deposit a minimum of US$100,000 annually into this fund for a minimum of five years. The fund will continue until a processing facility is constructed in Mackinac County.
Volume 29 issue 7