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
https://www.marketwire.com/press-release/novadx-reaches-settlement-with-ikerd-tsx-venture-ndx-1602126.htm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 28, 2011) - Novadx Ventures Corp. ("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 Novadx's 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 Royal's common shares is not greater than
.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."
much more at above link......................