Novadx Ventures Corp.

Novadx Ventures Corp.

July 25, 2011 09:00 ET

Novadx Ventures Corp.: MCoal Provides Update on Ikerd Asset Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 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 it has filed its 43-101 report with the TSX Venture Exchange ("Exchange") in connection with securing the Exchange's approval to close the acquisition of the assets of Ikerd Mining LLC ("Ikerd") as previously announced by the Company. Following review by the Exchange the report will be filed and available for review on SEDAR. In connection with this closing, the Company has agreed to further extend the loan facility previously announced on March 10, 2011 and May 28, 2011 to Ikerd Mining LLC, in order to fund current operations of Ikerd Mining and has received an extension to July 31, 2011 from Sandstorm Metals and Energy LLC ("Sandstorm") to close the Ikerd transaction pending Exchange approval.

The Ikerd assets consist of four permitted surface coal mines and related mining equipment, a stoker plant and rail load out facilities on Norfolk Southern Rail, all located in eastern Kentucky. Of these permitted mines, only the Flatwood's Mine has been operating. Production at the Flatwoods Mine commenced in early 2009 producing a high quality thermal coal at an average rate of 25,000 tons per month. In early May, 2011, production at the Flatwoods Mine was idled awaiting the issuance of a KPDES permit in connection with a new area of the mine being developed. On May 28th, 2011, the Company announced that it had assumed management control of Ikerd and had been designated operator under the Ikerd mine permits. On June 6, 2011 the Company announced that Ikerd had been granted the KPDES and the Novadx recommenced operations at the Flatwoods Mine.

Since reopening the Flatwoods Mine, the Company has focused operations at the mine to fully develop the new mine area which is now close to completion. Production at the mine has been increasing and is expected to reach historical production levels beginning in August.

The Company has also initiated preliminary development at a second Ikerd mine, the Elk Creek Mine, which is a surface strip mine located approximately 10 miles from the Flatwoods Mine, hosts three seams of low sulphur thermal coal. All permits, road access, and initial equipment necessary to commence operations of the Elk Creek Mine are in place. The Elk Creek Mine has not been previously operated and development of the mine site to date has consisted of an initial strip cut to determine anticipated coal qualities, optimal mining procedures, coal processing requirements and to provide samples for marketing purposes.

The Company intends to close the Ikerd asset acquisition as soon as practical after the Exchange approval is granted. Additional documentation and audited financial information on the Ikerd operation are being filed with the Exchange as part of their review and consideration of the transaction. Pursuant to a Coal Production Payment Agreement with Sandstorm previously announced on November 26, 2010, the Company's subsidiary, MCoal Corporation, has received an aggregate US$30 million in up front deposits against future coal production from the Company's Rosa and Rex Mines and expects to receive an additional US$8 million up front deposit upon closing of the Ikerd asset acquisition.

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.

This release contains "forward-looking information" that is based on Novadx's expectations, intentions, plans, beliefs, estimates and projections as of the dates as of which those statements were made. This forward-looking information may include, among other things, statements with respect to future production at the Company's operating mines and other operations. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan", "would" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Novadx's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and is developed based on assumptions about such risks, uncertainties and other factors, including but not limited to changes in commodity prices; the strength of the United States economy; the effects of competition and pricing pressures; the oversupply of, or lack of demand for, the Company's products; currency and interest rate fluctuations; various events which could disrupt the Company's operations; the Company's ability to obtain additional funding on favourable terms, if at all; and the Company's ability to anticipate and manage the foregoing factors and risks. Additionally, statements related to the quantity or magnitude of coal deposits are deemed to be forward looking statements. The reliability of such information is affected by, among other things, uncertainties involving geology of coal deposits; uncertainties of estimates of their size or composition; uncertainties of projections related to costs of production; the possibilities in delays in mining activities; changes in plans with respect to exploration, development projects or capital expenditures; and various other risks including those related to health, safety and environmental matters. Although Novadx has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Novadx disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

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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