The company’s four-pronged plan includes closing the Blount County operation until it can raise the capital needed to increase production via an additional auger purchase and it will add an ultra-fines circuit on the mine’s coal washing facility for increased recovery.

Officials said it would also finance and post the reclamation bond for the Rex No. 1 operation in Campbell County, Tennessee so it could obtain final permits for its coal washing facility.

Finally, Novadx’s plan includes maintaining positive cash flow and strengthening the company’s future by making changes to its executive structure.

With the support of partner Sandstorm Metals and Energy, it is progressing with the strategic plan and working to raise up to $US20 million in additional capital.

While the plan is expected to take several months, once it is implemented officials are hopeful Novadx will be on solid financial footing and in a better position overall.

“The goal of these strategic initiatives is to see both Rosa and Rex in production and generating significant cash flow for the company and its shareholders,” president and chief executive Neil MacDonald said.

“We need to improve our financial position and with the support of Sandstorm, we believe that we will accomplish this.”

The company announced full production from Rosa in late January. Sales commenced from the complex last November when the recoverable coal yield reached 90%.

Novadx last month said it had received the last needed go-ahead for Rex’s final wash plant permit from the US Department of the Interior’s Office of Surface Mining.

It means all regulatory technical requirements have been met and only the reclamation bond remains.