“Our current principal objectives are to provide shareholders with long-term growth through building a base of sustainable cash flow and earnings from MCoal’s operations, and to grow the business of MCoal both organically and through strategic acquisition,” Novadx president Neil MacDonald noted.
After its recent announcement of financing from Sandstorm Metals and Energy, the company was looking forward to expanding metallurgical coal production at the Rosa operation in Alabama as well as completing the acquisition and commissioning of the Rex No. 1 mine.
Novadx is also working to complete the Ikerd Flatwoods mine and asset purchase, and wrapping up the exploration phase of the Dade coal project in Georgia over the coming months.
“We will continue to devote the majority of our resources to growing MCoal’s business with the goal of increasing production and reserves/resources of high-quality coal,” MacDonald said.
MCoal, Novadx’s wholly owned subsidiary, is operating the Rosa operation in northern Alabama just outside of Birmingham. The companies announced full operation of the mine’s second shift in October.
An outright purchase deal for the Blount County metallurgical mine’s first auger machine was completed at that time. The move was intended to reduce lease and contract operating fees paid to the equipment manufacturer.
Novadx and MCoal announced the Dade project in September, with the goal of implementing an exploration plan to bring the historical estimates of the property into an NI 43-101-compliant resource estimate.