SOURCE: New Colombia Resources, Inc.

New Colombia Resources, Inc.

January 31, 2017 07:42 ET

New Colombia Resources Inc. Provides Update on Metallurgical Coal Mining Operations and Recent US$ 90 Million Purchase Order

Company begins to move equipment on site for rock crushing operations

BARRANQUILLA, COLOMBIA--(Marketwired - Jan 31, 2017) - New Colombia Resources, Inc. (OTC PINK: 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 provide an update on their metallurgical coal mining operations. Earlier this month, they announced the signing of 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 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

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. Engineers have been onsite since early December updating the Work Plan and Environmental Management Plan for a 10,000 tonne/month operation and have determined that production costs will drop from US $30 to $25/tonne at this capacity. 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

As the Company gears up to bring this mine to production, they plan to source coal for the first shipment in April and are analyzing several proposals from suppliers that provide significant margins based on the price agreed with ASI. Once the San Gregorio mine is producing 10,000 tonnes/month, they will still need to source the remaining balance of coal needed to fulfill the contract.

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. Approval is expected shortly; therefore they have begun plans to move equipment on site. Their rock crushing plant can produce 1000 m3/day to provide material to the biggest road projects in Colombia within 3 miles of the company's mining operations. New Colombia is also making plans to start producing coal on this property with several foreign companies that have done site visits. They're analyzing the best partner and will make announcements accordingly.

In addition to mining, New Colombia Resources has a medical marijuana joint venture, Sannabis of Cali, Colombia, that has been legally manufacturing medical marijuana products since 2014. Company President John Campo was in Cali last week with a film crew from the U.S. filming a documentary. They will be providing a detailed update of Sannabis operations in the coming days. 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.

Contact Information

  • Company/Media Contact:
    New Colombia Resources, Inc.
    John Campo
    President/Chairman
    (1)-410-236-8200 USA
    (57) 318-657-0918 Colombia
    jcampo@newcolombiaresources.com