Novadx seals Tennessee deal

APPALACHIA-focused Novadx Ventures has closed the acquisition of a mine, rail load-out facility and preparation plant adjacent to its existing Rex operation in eastern Tennessee.
Novadx seals Tennessee deal Novadx seals Tennessee deal Novadx seals Tennessee deal Novadx seals Tennessee deal Novadx seals Tennessee deal

Courtesy Novadx Ventures.

Justin Niessner

The properties were purchased from Tennessee companies Premium Coal, National Coal and Jacksboro Coal for an aggregate price of $8.5 million.

The acquired mine is contiguous with Novadx’s Rex coal reserves and will provide a second mine entry into the high-quality seam.

The company said the expansion could add to the reserves and resources and add to the operation’s mine life.

Rex holds proven and measured coal reserves of 11.3 million tons.

The preparation plant and rail infrastructure are expected to facilitate a more rapid start-up of mining and improved market access.

“With completion of this acquisition, the company now has the complete suite of assets needed to produce, prepare and ship coal at its Tennessee operations,” Novadx chief executive Daniel Roling said.

“Not only does this improve our access to Rex coal, it should ultimately increase our reserve and resource position in this highly sought-after coal.

Roling said the company’s aim was to begin production within six months after raising the equity necessary to bring the project online.

“It is my view that we have come a very long way in a very short period of time, and success is within our reach,” he said.

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