Sandstorm Metals & Energy Ltd.(TSXV:SND) and Novadx Ventures Corp. announced that they have acquired coal assets in Tennessee from Premium Coal Company, National Coal, LLC and Jacksboro Coal Company, LLC, for an aggregate purchase price of US$8.5 million.
As quoted in the press release:
The Acquisition was completed through a newly incorporated company which will be initially owned by Sandstorm and by Novadx, based on their relative contribution to the Purchase Price. Novadx will have full control over management and operation of US Inc. and has a one-year option to acquire Sandstorm’s interest in US Inc. at cost. Novadx will be responsible for the costs of any operations until the expiry of the Option Period. The Purchase Price was paid through a cash payment of US$3,000,000 contributed by Sandstorm, US$2,000,000 payable through the issuance of 4,377,675 common shares of Sandstorm and a short term promissory note issued by US Inc. in the amount of US$3,500,000. The Note will be payable by US Inc. but may be paid through the issuance of Sandstorm common shares, at the option of Sandstorm.