Novadx Ventures Corp.

Novadx Ventures Corp.

December 15, 2009 09:15 ET

Novadx Ventures Corp.: MCoal Receives Mine Permit from the Alabama Surface Mining Commission and Commences Operations at the Rosa Coal Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Novadx Ventures Corp ("Novadx") (TSX VENTURE:NDX) is pleased to announce that the Rosa Coal Mine plan as submitted by its wholly-owned subsidiary, MCoal Corporation ("MCoal") has been accepted by the Alabama Surface Mining Commission ("ASMC"). Accordingly MCoal has been granted Permit No. 3931-08-14-S ("Permit") to engage in surface coal mining operations at the Rosa Coal Mine.

Neil MacDonald CEO of Novadx and President of MCoal commented that, "Granting of this mine permit completes the permitting process required to bring the Rosa Coal Mine into production. MCoal has now received all permits necessary to begin production of high quality metallurgical coal at the Rosa Coal Mine and we are starting construction of our settlement ponds this week. Our goal is to be mining and selling metallurgical coal from the mine by the end of Q1 2010."

The Permit issued to MCoal relates to the first phase of a three phase mine plan. Phase one mining under the Permit will take place on 553 acres of existing highwall exposures left by previous surface mining operations in the 1960's and 1970's. The Rosa coal seam being mined is covered by overburden material that has been deposited by natural erosion of the highwalls and is thus readily exposable. MCoal is utilizing auger machines capable of penetrating the seam to a depth of up to 450ft to mine the seam. MCoal will process its coal at a nearby washing facility and will sell its finished product locally to two coal coking facilities and other specialty coal users.

The phase one mine plan developed in support of issuance of the Permit will be further detailed in a NI 43-101 report being prepared by Sanford Hendon of McGehee Engineering Corp, a "Qualified Person" as defined under NI 43-101. This report is expected to be issued in the first calendar quarter of 2010.

Mr. MacDonald further commented, "Although coal prices were generally depressed this past year, we believe that in response to improvements in the US economy, the outlook for high quality, mid volatility, coking coal like the Rosa coal, should be strong. We also anticipate prices for the Rosa coal that meets this coking specification will move significantly beyond the current $130/ton to $140/ton prices in the near term. We are fortunate to have our Permit in order to begin production at a time when demand for metallurgical coal is expected to increase and metallurgical coal prices are expected to rise."

Novadx has recently completed a new website and branding of the company, that reflects Novadx's new focus on the development of resource projects where the company has a majority or significant interest in.

Novadx also announces that it has provided a guarantee for a Letter of Credit (the "Letter of Credit") in the amount of US $793,262.00 granted to MCoal by the First National Bank of Jasper (the "Bank") in favor of the ASMC in connection with MCoal posting the required reclamation bond in order to have received the Permit. Amounts advanced to the ASMC under the Letter of Credit are repayable by MCoal upon demand, with interest accruing at a floating rate equal to 2% above the Bank's prime rate.

About MCoal: MCoal Corporation, a wholly owned subsidiary of Novadx Ventures Corp., has been actively acquiring surface and mineral interests that cover the Rosa Coal deposit. The Rosa Coal Project is a metallurgical coal mine project located in Blount County, Northern Alabama, approximately 40 miles from the City of Birmingham. Birmingham provides a nearby local market for the Rosa Coal and is the location of two existing coking plants that have historically used the Rosa Coal in their operations.

About Novadx: Novadx is a Vancouver-based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation, a subsidiary company that has obtained all necessary operating permits and is now opening a metallurgical coal mine in the State of Alabama, USA. For more information please visit


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.

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. 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.

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