For Immediate Release
Novadx Arranges US$400,000 MCoal Financing
Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
(
The Debentures are secured against MCoal's assets, subject to any prior charges, and mature on June 30, 2010. Interest at a rate of 12% per annum is payable on the earlier of the date of conversion or repayment. In the event that MCoal fails to repay the principal amount of the Debentures plus all accrued interest thereon before June 30, 2010, or Novadx directly or indirectly, elects to sell its interest in MCoal or the Rosa Coal Project prior to the end of June 30, 2010, the holders may elect to convert the Debentures into a 10% joint venture interest in the net revenue before taxes generated over the life of MCoal's Rosa Coal Project.
Subject to the approval of the TSX Venture Exchange, Novadx has agreed to issue 200,000 common shares (the "Bonus Shares"), at a deemed price of $0.20 per share, in consideration of the investors providing the Debenture financing to MCoal. The Bonus Shares will be subject to a hold period of four months and one day from the date of issuance.
Proceeds from the Debentures will be used by MCoal to purchase a certificate of deposit which will be pledged to obtain a letter of credit to post a reclamation bond, as required for the issuance of a mine permit for its Rosa Coal mine by the Alabama Surface Mining Commission.
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
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 currently permitting a metallurgical coal mine in the State of Alabama, USA. For more information please visit www.novadx.com.
This press release is not for distribution in the
ON BEHALF OF THE BOARD
Neil MacDonald
President and CEO and Director
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. 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.
For more information about Novadx Ventures Corp. please contact:
Neil MacDonald, President and CEO
(604) 633-2776
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Robin Bjorklund, or
Griff Jones
Investor Relations
OceanPoint Advisors Inc.
(604) 682-7339
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
This e-mail address is being protected from spambots. You need JavaScript enabled to view it