NovaDx Ventures Corp. and Sandstorm Metals & Energy Ltd. announced completion of the acquisition of Mine 12, the Turley Rail Load-Out, and the Smokey Junction Preparation Plant located in Campbell and Scott Counties, Tennessee. The Tennessee Properties were acquired from Premium Coal Company National Coal, LLC and Jacksboro Coal Company, LLC for an aggregate purchase price of $8.5 million.

The acquisition was completed through a newly incorporated company owned by Sandstorm. Novadx will have full control over management and operation of US Inc. and, subject to Novadx completing financings for minimum aggregate proceeds of not less than $10,000,000, Novadx will have 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 $3,000,000 contributed by Sandstorm, $2,000,000 paid through the issuance of 4,377,675 common shares of Sandstorm and a five year secured loan from National Coal LLC. to US Inc. in the amount of $3,500,000. The loan is secured by a first lien and security interest in the Smokey Junction Preparation Plant, payable in annual installments of $700,000 in principal plus accrued interest at the prime rate quoted in the Wall Street Journal.

US Inc. may pay the outstanding principal balance plus accrued interest at any time prior to maturity without penalty. Sandstorm has the option to pay the outstanding principal balance plus accrued interest at any time through the issuance of Sandstorm common shares at the 10 day trading average prior to Sandstorm making such election. Novadx has otherwise agreed to fund the repayment of the Loan and in doing so will earn up to a 41.2% ownership interest in US Inc. based on its and Sandstorm's relative contribution to the Purchase Price.