GREAT NEWS .... NOVADX Sandstorm has agreed to purchase 25% of the first 3,800,000 tons of metallurgical equivalent coal (where three tons of thermal coal equals one ton of metallurgical equivalent coal) produced and 16% of the life of mine metallurgical equivalent coal produced thereafter from the Rosa Mine and the Rex No. 1 Mine for an upfront payment of US$30 million plus ongoing per ton payments of US$75 for metallurgical coal and US$55 for thermal coal. NovaDX has provided a guarantee that Sandstorm will receive minimum cash flows of (i) US$3 million in 2011, (ii) US$5 million in 2012, (iii) US$6 million in 2013, and (iv) US$8 million in each of 2014 and 2015, thus providing a 100% return of capital within 5 years.
PS: NOTE THAT THE FOLLOWING PR CALLS FOR A 23 YEAR MINE LIFE!!!!!!!!
Novadx Files Updated Technical Report and Confirms Economic Feasibility of Rex Coal Mine Project
Highlights:
-- Total Measured and Indicated Resources of 38.1M tons and Inferred Resource of 9.6M tons.
-- Demonstrated Proven and Probable Recoverable Reserves of 11.3M tons supporting a 23 year expected mine life.
-- Economic Assessment of Demonstrated Reserves shows after tax NPV of $71.8 million at a 15% discount rate.
-- Recommendation to expand reserves by acquiring adjacent properties and further exploration.
https://www.marketwire.com/press-release/novadx-files-updated-technical-report-confirms-economic-feasibility-rex-coal-mine-project-tsx-venture-ndx-1646089.htm
more detail at the above link.........................