In October, 2006 new management lead by Neil MacDonald, Novadx’s CEO, took over Novadx and the company began operations as a merchant bank with an investment focus in mineral exploration. The company structured, made investments as a principal and provided management and other related services to companies and projects that it believed had an above average opportunity to provide a high return on investment. During this time the company acquired and expanded the Canadian Small Cap Resource Funds, a family of flow through funds, which was subsequently sold in June 2009.
In October 2008, Novadx changed its investment focus to concentrate on acquiring and developing high quality coal reserves and operations in the Appalachia coal region of the USA and incorporated its wholly owned subsidiary MCoal Corporation to commence the property acquisition, permitting and development of the Company’s flagship Rosa Mine in Blount County, Alabama. Novadx commenced production of high quality metallurgical coal at the Rosa Mine in April 2010. In November 2010, Novadx arranged up to $38 million in funding by way of a coal stream financing with Sandstorm Metals & Energy of Vancouver, BC. The proceeds of this financing will be used to install a coal preparation (washing) facility at the Rosa Mine, acquire the Rex No. 1 Mine in Campbell County, Tennessee (completed January 21, 2011),and to develop and begin producing the Rex No. 1 Mine.