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Novadx Ventures Corp NDXFF

"NovaDx Ventures Corp is a mining company engaged in the exploration, development and recovery of coal. The company's operations are principally directed towards the Rex No."


GREY:NDXFF - Post by User

Comment by ResourceMineron Apr 01, 2013 8:46am
219 Views
Post# 21190902

RE: Whats the next move

RE: Whats the next move

Yes, NDX holders will end with nothing. SND will try to sell the properties to someone else and restructure the  streams in hopes of recouping their capital. In reality, SND is screwed as the assets are not worth what is owed. Never mind the NPV valuations, those are based on high coal prices, which probably will never be seen again. 

While Rosa could be marginally profitable, the market for Rex's coal (Specialty and Hi-Vol) is gone. 

But the fact is that NDX shareholders never had skin in the game. All they brought to the table was a barely operational Rosa. The rest was done with SND money. So really, NDX holders didn't lose much. Although, continued listing on the TSX-V without a property will be problematic. 

Neil had the opportunity, shortly after the SND transaction to raise a considerable amount of money, via private placement at a high share price, but passed. Wrong move. As a junior miner, it you can raise money, you do it, particularly in a cyclical market like coal. 

 

 

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