Novadx Ventures Corp.

Novadx Ventures Corp.

September 27, 2011 18:37 ET

Novadx Terminates Management Agreement With Ikerd Mining

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2011) - Novadx Ventures Corp. (TSX VENTURE:NDX) -


Novadx Ventures Corp., President & CEO, Neil MacDonald, reports:

Novadx Ventures Corp. ("Novadx" or the "Company") (TSX VENTURE:NDX) announces that as a result of recent developments in its due diligence it has begun taking steps to terminate its efforts to acquire the assets of Ikerd Mining, LLC, Ikerd Terminal Company, LLC and Ikerd Transportation Company, LLC (hereinafter referred to collectively as "Ikerd"). Accordingly, the Company delivered notice to Ikerd that it is terminating its management agreement with Ikerd announced May 26, 2011. In connection with terminating the management agreement, the Company has made demand of Ikerd to repay all amounts due to the Company under the management agreement and previously announced credit facility.

Novadx also announces that it has filed a lawsuit in connection with these developments against Ikerd and its Managing Member, Frank Ikerd, seeking damages for breach of contract, breach of good faith and fair dealing, fraud, misrepresentation, unjust enrichment and has also made a demand for a full accounting. Novadx will be taking all steps available to it to protect its interests.

Novadx CEO, Neil MacDonald, commented, "We are fortunate to have identified these issues prior to closing the Ikerd transaction. We move forward with a cash position of approximately $8.3 million and continue to have strong operations and development at our Rosa Mine in Alabama and Rex Mine in Tennessee. The Company intends to provide a more detailed update on these projects in the coming weeks. We will continue to identify and pursue the acquisition of quality projects with established coal reserves in the Appalachia coal region, with a view to further enhancing value to our shareholders."

About Novadx: Novadx Ventures Corp. is a Vancouver based mining investment company. 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

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.


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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