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Novadx Ventures Corp. (CVE:NDX) announced that as a result of recent developments in its due diligence it has commenced taking steps to terminate its efforts to acquire the assets of Ikerd Mining, LLC.
The press release is quoted as saying:
Accordingly, the Company delivered notice to Ikerd that it is terminating its management agreement with Ikerd announced May 26, 2011. In connection with terminating the management agreement, the Company has made demand of Ikerd to repay all amounts due to the Company under the management agreement and previously announced credit facility.
Novadx also announces that it has filed a lawsuit in connection with these developments against Ikerd and its Managing Member, Frank Ikerd, seeking damages for breach of contract, breach of good faith and fair dealing, fraud, misrepresentation, unjust enrichment and has also made a demand for a full accounting. Novadx will be taking all steps available to it to protect its interests.
Novadx’s CEO, Neil MacDonald commented:
“We are fortunate to have identified these issues prior to closing the Ikerd transaction. We move forward with a cash position of approximately $8.3 million and continue to have strong operations and development at our Rosa Mine in Alabama and Rex Mine in Tennessee. The Company intends to provide a more detailed update on these projects in the coming weeks. We will continue to identify and pursue the acquisition of quality projects with established coal reserves in the Appalachia coal region, with a view to further enhancing value to our shareholders.”
Click here to access the entire news release.
