Mr. Neil MacDonald reports
NOVADX AND MCOAL COMPLETE ACQUISITION OF TIACME, LLC AND REX NO. 1 MINE
Furtherto the news in Stockwatch on Jan. 6, 2011, NovaDx Ventures Corp.,effective Friday, Jan. 21, 2011, has completed, through its whollyowned subsidiary, MCoal Corp., the acquisition of 100-per-cent interestin Tiacme LLC for consideration of $2.5-million (U.S.) in cash and 6.25million common shares of NovaDx. The shares will be subject to a holdperiod of four months and one day.
Tiacme LLC's principal assetis the fully permitted and bonded Rex No. 1 mine located in Tennessee.MCoal's NI 43-101-compliant technical report regarding the Rex No. 1mine can be found in NovaDx's filings on SEDAR.
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 per cent of inferred coal resource as either measured or indicated through drilling of at least 12 additional holes;
- A summary of the Rex coal reserve quality (as received) shown in the attached table.
% Ash %VM %FC %Sul British thermal unit per pound
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
NeilMacDonald, chief executive officer of NovaDx, commented: "We are verypleased to complete this accretive transaction and plan to immediatelybegin work necessary to commence development of this mine with ananticipated initial production date in the third quarter of thiscalendar year. This acquisition significantly increases our reserves ofhigh-quality coal. With improving coal market conditions, we expect theincremental production from the Rex No. 1 mine will contributesignificantly to our future profitability."
Technical aspects ofthis news release have been prepared under the supervision of GeorgeSmith, PE, LS, of Gress Engineering PC, who is a qualified person asthat term is defined under National Instrument 43-101.
We seek Safe Harbor.