🕐28.12.11 - 15:54 Uhr

NOVADX REACHES SETTLEMENT WITH IKERD



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December 28, 2011

Novadx Reaches Settlement With Ikerd

Highlights:

  • Ikerd to transfer mining and coal terminal assets to MCoal.
  • Royal Coal to contract mine and sell the coal at the Ikerd properties, assume Ikerd equipment lease payments, pay an override of $2.50 per ton of coal mined to MCoal.
  • Novadx to be issued a minimum of 15 million shares of Royal Coal.

VANCOUVER, BC - Novadx Ventures Corp. (TSXV: NDX) ("Novadx" or the "Company") (TSX VENTURE:NDX) is pleased to report that it has reached a settlement of the claims asserted in pending litigation arising out of its previously announced transaction with the Ikerd Group of Companies ("Ikerd") which was terminated on September 27, 2011.

The settlement involves agreements with both Ikerd and Royal Coal Corp.

("Royal") (TSX VENTURE:RDA).

Ikerd and Novadxs wholly owned subsidiary MCoal Corporation ("MCoal"), have each executed agreements with Royal pursuant to which Royal will mine and sell coal from the Flatwoods and other Ikerd properties, on a contract basis.

In exchange, and subject to regulatory approval, Novadx will be issued 15 million common shares of Royal and will receive an ongoing cash payment of US$2.50 per ton of coal mined by Royal from Ikerd properties, up to an aggregate amount of US$2,500,000.

An additional 5 million common shares will by issuable by Royal if the average closing price of Royals common shares is not greater than $0.10 per share over a 30 day period commencing 150 days after the shares are issued to Novadx.

Once issued, the shares will be subject to a 4 month hold period and will be subject to a right of first refusal to assist in the orderly sale of the shares by Novadx in the future.

Novadx CEO, Neil MacDonald, comments, "We are very pleased to be able to reach an agreement with all parties that will enable us to settle all amounts owing under our previous management agreement, while giving us further upside with our equity position in Royal Coal."

Royal will also assume all ongoing mining equipment lease obligations necessary to continue operations, and has agreed to make further payments to MCoal, representing the equity value of the leased mining equipment of US$200,000 on June 30, 2012 and US$300,000 on December 31, 2012.

Pursuant to the agreement executed with Ikerd, the Ikerd companies will transfer to MCoal certain outstanding receivables in the face amount of $649,000, as well as remaining coal inventory, property leases, permits and equipment associated with Ikerds coal terminal operations located in Somerset, Kentucky, coal lease interests at various Ikerd mines, and certain designated mining equipment with an estimated liquidation value of $500,000.

The coal lease interests together with certain other coal leases acquired directly by MCoal near the Flatwoods mine will be transferred by MCoal to Royal once all payments are made to MCoal and Novadx.

MCoal has also agreed to provide the Ikerd companies with a lease and access to the Somerset, KY coal terminal in order to facilitate further coal loading operations by Ikerd.

Payments aggregating US$750,000 are payable by the Ikerd companies over the next thirty months.

Once these lease payment are made, MCoal has agreed to transfer the Somerset coal terminal property assets and certain specified equipment back to Ikerd.

The lawsuits filed by Novadx and MCoal against the Ikerd parties, as announced on September 27, 2011, will be held in abeyance until all payments under the various agreements have been received by Novadx and MCoal.

About Novadx:  Novadx Ventures Corp.

is a Vancouver-based mining investment Company.

Through its wholly-owned subsidiary, Novadxs primary focus is to invest its capital to acquire and develop companies with active or near production high quality coal reserves in the US Appalachia coal region.

Novadx intends to continue to grow the value of its coal investments through expanding production and reserves amongst its existing investments and by investing in additional acquisitions.

Novadx is actively evaluating a number of high quality coal acquisition opportunities.

For more information please visit  www.novadx.com.

About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures Corp., which operates the Rosa coal mine in Blount County, Alabama, and is developing the Rex No.1 coal mine in Campbell County, Tennessee.

ON BEHALF OF THE BOARD

Neil MacDonald, President and CEO and Director

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.

This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including managements assessment of Novadxs and MCoals future outlook, potential financings, potential acquisitions and production.

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.

Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved.

Forward-looking information is based on information available at the time it is made and/or managements good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information.

Important factors that could cause these differences include but are not limited to: the ability of the Company to obtain regulatory approvals for proposed transactions, pricing and assumptions and projections concerning assets and reserves and/or resources in our mining operations; changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Companys ability to continue to execute its growth strategies; the Companys ability to secure additional financing; the Companys ability to complete planned acquisitions; and general economic conditions.

You should not put undue reliance on any forward-looking information.

We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws.

If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.

The Company cautions readers that forward-looking statements, including without limitation those relating to the companys 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.

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.


A detailed stock quote on TSX-V: NDX can be found here.

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