NEWS ... NovaDx Sandstorm has coal stream agreement to purchase 25% of the first 3,800,000 tons of metallurgical coal produced and 16% of the life of mine metallurgical coal produced thereafter from the Rosa Mine and the Rex No. 1 Mine at US$65 per ton. Sandstorm made an upfront payment of US$30 to acquire the stream in December 2010.
Novadx Announces Key Initiatives
https://www.marketwire.com/press-release/novadx-announces-key-initiatives-tsx-venture-ndx-1658193.htm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) - Novadx Ventures Corp. ("Novadx" or the "Company") (TSX VENTURE:NDX) is pleased to announce that it has initiated a strategic plan, with the support of Sandstorm Metals & Energy Ltd. ("Sandstorm"), that is focused on the following key initiatives:
- Preserving the value of the Rex No.1 coal mine in Campbell County, Tennessee by financing and posting the reclamation bond that is required to receive the final permits for the coal washing facility;
- Temporary idling of the Rosa coal mine in Blount County, Alabama until capital can be raised to increase production through the purchase of an additional auger and adding an ultra fines circuit on the mine's coal washing facility to further increase coal recovery;
- Maintaining a positive working capital balance; and
- Augmenting the Company's executive team to move forward with future growth.
The strategic plan is expected to take several months to implement and in the meantime the Company will be pursuing a plan to raise up to $20 million in additional capital. Once the plan has been fully implemented, Novadx will be on solid financial footing and in a better position to build shareholder value. Novadx and Sandstorm remain confident that the Company's metallurgical and specialty coal projects will create material returns for Novadx shareholders. Such optimism is highlighted by the recently filed positive economic assessment of the Rex No. 1 coal mine which contains a 23 year mine life and a life of mine net present value (after-tax, 15% discount rate) of US$71.9 million.
Neil MacDonald, President & CEO of Novadx commented on the new plan, "The goal of these strategic initiatives is to see both Rosa and Rex in production and generating significant cash flow for the Company and its shareholders. We need to improve our financial position and with the support of Sandstorm we believe that we will accomplish this."