Nova dips as subsidiary's coal transportation contract approaches expiry

Shares in natural resources investment company Nova Resources slid sharply on Monday after the company announced that a coal transportation contract dated February 14th 2012 between one of its investment subsidiaries, Nova Trans LLC, and Transgobi LLC was due to expire on April 15th.

Shares in natural resources investment company Nova Resources slid sharply on Monday after the company announced that a coal transportation contract dated February 14th 2012 between one of its investment subsidiaries, Nova Trans LLC, and Transgobi LLC was due to expire on April 15th.

Nova Resources reported that under the terms of the contract, the contract could be extended by another year. The company added that the parties had been in negotiations in relation to extending the contract but said that "no final agreement has been reached at this time".

The company said that it was also exploring other trucking opportunities, adding that it would "make an announcement when an agreement has been concluded, if at all".

Nova Resources focuses on acquiring and developing businesses that provide services and facilities to the natural resources industries.

Nova Trans LLC is Nova Resources' 100% owned Mongolian subsidiary, which is focused on the establishment of large volume road haulage coal transportation operations in Mongolia.

Nova Resources' share price was down 37.50% to 1.88p at 12:17 on Monday.

MF

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