Health & Fitness
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Novadx Ventures Corp. ("Novadx") (TSX VENTURE:NDX) provided an update today on the repayment by its wholly-owned subsidiary, MCoal Corporation ("MCoal"), of MCoal's Series "A" Secured Convertible Debentures (the "Series A Debentures") and Series "B" Secured Convertible Debentures (the "Series B Debentures"). As announced on June 11, 2010, MCoal had previously been provided notice by the holders of the Series A Debentures of their intention to convert the Series A Debentures into a 25% joint venture interest in MCoal's Rosa Coal Mine located in northern Alabama. Despite MCoal's efforts to settle the terms of a joint venture agreement with the holders of the Series A Debentures so as to allow the conversion to take place, no agreement was ever reached and the conversion did not occur. As such, the aggregate principal amount of US$1,400,000 plus accrued interest on the Series A and Series B Debentures was repaid in full on December 10 and 13, 2010. However, despite the fact that no joint venture agreement was arrived at and the debentures have been repaid, the holders of the Series A and Series B Debentures have refused to accept payment and have indicated that they continue to intend to convert their Series A Debentures into the previously announced joint venture interest.
Novadx believes that there is no merit in the holders' position and has commenced a Petition before the Supreme Court of British Columbia for a declaration that it and MCoal have fulfilled all of their obligations under the Series A and Series B Debentures. The holders have in turn filed a Notice of Claim before the Supreme Court of British Columbia seeking an order that they may still convert their Series A Debentures into a joint venture interest in the Rosa Coal Mine. Novadx provided notice to the holders that it considered their Notice of Claim to be improper and gave them a deadline of March 3, 2011 to respond to the Petition, which they have now done. Novadx intends to set the petition down for hearing shortly and intends to vigorously assert its rights under the Series A and Series B Debentures and demonstrate that the holders failed to take the necessary steps to convert, despite their previously announced intention to do so. However, there can be no guarantee that Novadx will be successful in this regard.
Novadx has today refiled its interim financial statements for the three-month and six-month periods ended December 31, 2010 and its management's discussion and analysis for the same period to add a subsequent event note disclosing this dispute.
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 [ 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
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. 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.