BARRANQUILLA, COLOMBIA--(Marketwired - Jan 5, 2017) - New Colombia Resources, Inc. (OTC: NEWC) ("New Colombia or the 'Company"), a Colombian company listed in the U.S. with premium metallurgical coal properties and medical marijuana operations, is pleased to announce they have signed a US$ 90 Million purchase agreement for metallurgical coal with American Steel Industries, LLC (ASI) of Philadelphia, PA, a joint venture partner with a Chinese Government owned Multi-Billion Dollar Commodities and Steel Trading Company. ASI has been exporting steel from China for the past 12 years and is one of its largest steel exporters, for more information about ASI, visit http://www.asi-steel.com/.
Deliveries loaded at the port in Colombia for shipment to South China in 2017 will be as follows:
- April- 60,000 tonnes
- May- 40,000 tonnes
- June- 40,000 tonnes
- July-December- 60,000 tonnes/month
This contract will be filled by New Colombia's joint venture with MSG Mining Corp. The joint venture has sourced the coal to make timely deliveries per the agreement. Some of the coal will be supplied by the joint venture's Mina San Gregorio in Cucuta, Colombia with the remainder being sourced from third party producers. The coal will be stored at the Company's coal yard in Cucuta with a 50,000 tonne capacity and industrial scale, then trucked or barged to a port on the Caribbean coast for shipment to South China.
In November 2016, New Colombia Resources entered into a joint venture agreement to operate metallurgical coal Concession Contract JC3-15231 located in the municipality of Zulia, approximately 25 km from Cucuta, Colombia. New Colombia Resources and MSG Mining Corp. are registering a Colombian subsidiary that is 51% owned by New Colombia Resources and 49% owned by MSG Mining Corp. Engineers have been onsite since early December updating the Work Plan and Environmental Management Plan for a 10,000 tonne/month operation to begin coal mining in February 2017.
The coal from this area has a high 15,000 Btu/lb. calorific value that is appetizing for metals producers. The concession contract has an approved Work Plan by the National Mining Agency (ANM) and an Environmental License from the local environmental agency. For a copy of the Work Plan, Environmental License, mining title, reserve report, SGS Coal Analysis, and pictures of the stock yard, click here: https://drive.google.com/open?id=0BxSKP5j2FlsecVJUeGhJYTFwRGc.
The Work Program identifies at least two coal formations, Cuervos and Carbonera, with over 8 coal seams with estimated reserves between 1 to 13 Million tonnes each. Based on the Work Program, the Companies initially expect to begin extracting coal from Seam 1 (Manto 1) of the Cuervos Formation with an estimated 2.4 Million tonnes of reserves that are believed to be easily accessible. In February 2017, the Companies anticipate initiating a coal operation to produce 10,000 tonnes per month that can be scaled up to 30,000 tonnes/month. During extraction of the Cuervo Formation, they will explore the Carbonera formation coal seams with estimated reserves between 12-13 Million tonnes each. Total Reserves are estimated at over 40 Million tonnes.
The San Gregorio Mine will be a showcase mining project in Water and Wastewater Management. New Colombia's joint venture partner MSG Mining Corp. is owned by Tito C. Castillo, title holder to the Concession Contract. Mr. Castillo, a Chemical Engineer/ MBA, has been in the Water Treatment Equipment Industry for over 25 years in the U.S. and elsewhere. He spent 6 years in the Middle East working with the latest technologies in the Reverse Osmosis Process and the past few years assisting the Government of Colombia with water issues. The Water and Wastewater Large Modular Plant System is the latest technology that will play a vital role in Colombia's mining sector since the country is desperately trying to conserve the Andes Mountain Range and their river system while mining their rich mineral reserves. This Mine project will give the industry a pilot system to show that mining does not mean the destruction of the Eco system.
New Colombia Resources is also developing mining concessions in Guaduas, Cundinamarca where they control close to 4000 hectares of metallurgical coal concession contracts. Their first contract in Guaduas, ILE-09551, has an approved Work Plan for coal and is awaiting approval of the addition of building materials to begin operations. They purchased a 1000 m3/day rock crushing plant that is expected to be operating this quarter, and the Greenfields where these operations will begin within 3 miles of the biggest road project in Colombia.
In addition to mining, New Colombia Resources has a medical marijuana joint venture manufacturing medical products since 2014. To view or purchase Sannabis products visit www.sannabis.co. Follow Sannabis on Facebook for photos and testimonials at https://www.facebook.com/sannabis.cannamedicinal.
New Colombia Resources, Inc.
New Colombia Resources, Inc. owns vast reserves of premium metallurgical coal mining titles and a medical marijuana joint venture in the Republic of Colombia. They are setting up a rock mining operation to supply the major road and infrastructure projects within miles of their properties. They own 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 million tonnes of reserves. They have an additional 1196 ha. metallurgical coal mining title that they are negotiating to develop with a foreign entity to build a coal fired power plant. New Colombia Resources holds a significant position in Sannabis SAS which legally produces medical marijuana products in the Republic of Colombia, visit www.sannabis.co. For more information on the Company visit www.newcolombiaresources.com.
Forward Looking Statements
Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements might not occur. Factors that could cause or contribute to such differences include financing, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations. New Colombia Resources, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.