High Risk For Investors And Rosa

We would ask the Alabama Surface Mining Commission to look closely at the company, MCoal and its owner NovaDX Ventures, an investment banking operation with only one investment, the potential Rosa Coal Mine. The stability/viability of this company should be a serious factor when determining whether or not they are capable of undertaking a proposed mine of this size. When their stock is trading at $0.11 off a 52 week high of $0.25 and their one and only reason for enticing investors to pump money into the company is the proposed Rosa Coal Mine, the entire operation sounds like a financially unsound, wildcat endeavor.

The Alabama Surface Mining Commission should recognize this is not a well established coal mining operation. Can they follow through on their plans for the Rosa Mine? The CEO and Director, Neil MacDonald, summed up their position in a June 2007 interview with BIV Daily News, when he said, “…NovaDX is unique because it’s one of the few investment companies in Canada to focus exclusively on high-risk resource exploration ventures. However, it limits the size of its investments to between $100,000 and $1 million. That way, if a venture fails, NovaDX can lick its wounds and invest somewhere else”, MacDonald said.
He also stated , “It’s high-risk investing, but it can also be very high reward. And it takes a very special skill set and consistency to really harvest those high rewards.”
The approach follows the golden rule of investing, which MacDonald has learned well since his days as a failed fungus farmer: don’t put all your eggs in one basket.

Is this the kind of company that should be undertaking a mining operation of this size? The Alabama Surface Mining Commission should seriously consider whether or not a small, low funded, high-risk operation, with no connection to the state of Alabama or the United States should be allowed to mine on the scale it has proposed. There is too much risk involved to put the homes, property, lives, water, wildlife, etc., in jeopardy just to accommodate an unproven, speculative Canadian mining operation. This operation going belly-up, which this has a tremendous risk of doing, could leave the good people of Rosa, Cleveland, and Alabama sifting through a mess for years to come with no hope of ever recouping our losses. For everyone’s sake, this permit should be denied.