VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/10/12)- Novadx Ventures Corp. ("Novadx" or the "Company") (TSX-V: NDX) provides the following update on its Rosa Mine operations in Blount County, Alabama.
Novadx is pleased to announce that, further to its news release of March 4, 2011, the Supreme Court of British Columbia has issued a decision in favour of the Company and its wholly owned subsidiary, MCoal Corporation and dismissed all of the claims of the holders of the Series A and Series B Secured Convertible Debentures (the "Debenture Holders"). Despite the Company having previously repaid the debentures in accordance with their terms, in February, 2011 the Debenture Holders filed a Notice of Civil Claim in the BC Supreme Court seeking an order that they had converted their debentures and possessed a 25% joint venture interest in MCoal's Rosa Mine. In response to this litigation the Company brought an application to dismiss all of the claims of the holders Series A and Series B Debentures before the BC Supreme Court. On April 7, 2012, the BC Supreme Court issued a decision in favour of the Company and dismissed all of the claims of the holders of the Series A and Series B Debentures. The holders of the Series A and Series B Debentures have 30 days to appeal the decision, ending on May 7, 2012.
The Company has all of the necessary permits in place to complete the mining of all five increments under its phase 1 mine plan at the Rosa Mine. The Company is currently nearing the completion of mining the second increment, and will need to post additional reclamation bonding fees and incur infrastructure costs, including road building and settlement pond construction costs, in order to commence mining on the next increments.
About Novadx: Novadx Ventures Corp. is a Vancouver based mining investment Company. Through its wholly owned subsidiary, Novadx's primary focus is to invest its capital to acquire and develop companies with active or near production high quality coal reserves in the US Appalachia coal region. Novadx intends to continue to grow the value of its coal investments through expanding production and reserves amongst its existing investments and by investing in additional acquisitions. Novadx is actively evaluating a number of high quality coal acquisition opportunities. For more information please visit www.novadx.com.
About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures Corp. which operates the Rosa coal mine in Blount County, Alabama and is developing the Rex No.1 coal mine in Campbell County, Tennessee.
ON BEHALF OF THE BOARD
Neil MacDonald, President and CEO and Director
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the qualification under the securities laws of such jurisdiction.
This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Novadx's and MCoal's future outlook, potential financings, potential acquisitions, properties and mining activities and production. Specifically, this release contains forward-looking information related to estimated coal reserves and resources, future development of assets, mining operations, reserves or properties. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: actual or expected sampling or production results, pricing and assumptions, projections concerning reserves and/ or resources in our mining operations; changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to maintain existing mining leases and rights and the ability obtain new mining leases, rights and permits; governmental and regulatory approvals, the costs of reclamation of previously mined properties; the risks of expanding coal mining activities and production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; the Company's ability to secure additional financing; the Company's ability to complete planned acquisitions; and general economic conditions. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
- BC Supreme Court