Novadx and MCoal Complete Acquisition of Tiacme, LLC and Rex No. 1 Mine Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
For Immediate Release
Novadx and MCoal Complete Acquisition of Tiacme, LLC and Rex No. 1 Mine
Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
(Vancouver, BC, January 24, 2011) Further to the news release dated January 6, 2011, Novadx Ventures Corp. (“Novadx” or the “Company”) - (TSX-V: NDX) is pleased to announce that effective Friday January 21, 2011, it completed, through its wholly owned subsidiary, MCoal Corporation (“MCoal”), the acquisition of 100% interest in Tiacme, LLC for consideration of US$2.5 million in cash and 6,250,000 common shares (the "Shares") of Novadx. The Shares will be subject to a hold period of four months and one day.
Tiacme, LLC’s principal asset is the fully permitted and bonded Rex No. 1 Mine located in Tennessee. MCoal’s NI 43-101 compliant technical report regarding the Rex No. 1 Mine can be found in Novadx’s filings on Sedar (www.sedar.com).
Highlights of this report include:
- 32.2 million tons of Proven and Probable in situ Rex coal reserves.
- 12.7 million tons of Measured Rex coal resources.
- 19.4 million tons of Indicated Rex coal resources.
- 25.7 million tons of Inferred Rex coal resources.
- Potential to reclassify up to 75% of inferred coal resource as either measured or indicated through drilling of at least 12 additional holes.
- The following summary of the Rex coal reserve quality (as received).
| % Ash | %VM | %FC | %Sul | Btu/lb | |
|---|---|---|---|---|---|
| Average | 4.88 | 38.31 | 56.81 | .92 | 14,358 |
| Minimum | 2.07 | 38.00 | 54.66 | .72 | 13,989 |
| Maximum | 7.23 | 39.16 | 59.26 | 1.56 | 14,842 |
Neil MacDonald, CEO of Novadx commented, “We are very pleased to complete this accretive transaction and plan to immediately begin work necessary to commence development of this mine with an anticipated initial production date in the third quarter of this calendar year. This acquisition significantly increases our reserves of high quality coal. With improving coal market conditions, we expect the incremental production from the Rex No. 1 Mine will contribute significantly to our future profitability.”
Technical aspects of this news release have been prepared under the supervision of George Smith, PE, LS, of Gress Engineering, PC, who is a Qualified Person as that term is defined under National Instrument 43-101.
About Novadx: Novadx is a Vancouver-based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation, a subsidiary company that has commenced production from the Rosa mine a metallurgical coal mine in the State of Alabama, USA. For more information please visit www.novadx.com.
About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures Corp. and operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal mine located in Northern Alabama, approximately 40 miles north of the City of Birmingham. In addition to operating the Rosa Mine, MCoal is actively increasing its reserves and production through the evaluation and acquisition of high quality coal assets in the Appalachia coal region.
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER THE UNITED STATES WIRE SERVICES.
ON BEHALF OF THE BOARD Neil MacDonald President and CEO and Director
For more information about Novadx Ventures Corp. please contact:
Neil MacDonald, CEO, Novadx Ventures Corp.
(604) 633-2776 ext 23 [email protected]
Or our investor relations contacts:
Mark van der Horst Mike Rowsome Christopher Haugen
Gale Capital Corp.
(604) 200-1480 [email protected]
Neither 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 The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the qualification under the securities laws of such jurisdiction.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward‐looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.