Vancouver, Canada-based investment company Novadx Ventures Corp. has announced that its wholly-owned subsidiary MCoal Corporation (MCoal) and Novadx have entered into a letter of intent with US-based Tiacme LLC (Tiacme) to acquire all the outstanding membership units of Tiacme for US$5 million, with US$2.5 million payable in cash and US$2.5 million in shares of Novadx.
Tiacme's sole asset is the Rex No. 1 coal mine located on the border of Kentucky and Tennessee in the Columbian Mountains. The mine was fully permitted and bonded in the fourth quarter of 2008. An independent technical report of May 2009 estimated that the property contains 32.20 million mt of measured and indicated coal resources and 27.64 million tons of inferred ‘Rex' coal resources.
The Rex coal has been sold primarily for the production of silicon metal due to its high quality and low iron and titanium content, the company said.
MCoal also produces metallurgical coal at its Rosa coal mine, located in Blount County, Alabama, US.