MIAMI, FL--(Marketwired - Apr 24, 2014) - New Colombia Resources, Inc. (OTCQB: NEWC) ("New Colombia or the Company"), a U.S. company with coal and other resource assets in Colombia, is providing an update to shareholders on their projects in Colombia.
New Colombia Resources is focused on bringing their mining operations online while taking advantage of other opportunities. In addition to mining, they are discussing clinical trials with a pharmaceutical company in Colombia for cannabis based products. These trials will be designed by a U.S. specialist so they can be used as data for eventual submission to the FDA by New Colombia or other companies. They will work with their pharmaceutical partner to gain the necessary approvals. Colombia's President Santos in an interview with the WSJ this week said, "How do I explain to a peasant in Colombia that I have to put him in prison for growing marijuana when in Colorado or in Washington state, it's legal to buy the same marijuana?"
New Colombia Resources is pleased to announce they have filed for their environmental license with the local environmental authority for their high quality metallurgical coal concession. The Company expects comments then approval within a few months. Their work plan (PTO) was approved on Dec. 23, 2013. They will begin processing aggregates in the coming weeks with a newly reconditioned rock crushing plant. New Colombia Resources has executed a purchase agreement for this plant payable in monthly installments. The crusher is capable of producing over 100m3/hour.
A video of this crusher running idle will be posted on the homepage of the company's website, www.newcolombiaresources.com.
The Company was not able to begin their rock quarry operation in the first quarter due to talks with a major U.S. coal miner interested in an asset swap of metallurgical coal for rock mining equipment. The U.S. miner decided after two months of consideration to wait until New Colombia was ready to begin coal mining and completed their technical study. The Company met with John T. Boyd & Co. to begin an Advisory Memorandum for their concessions which will lead to an N.I. 43-101. The company is negotiating financing for the approximately $ 300,000 needed to begin rock mining.
Upon financing, New Colombia Resources, through majority owned subsidiary Compañía Minera San Jose Ltda, will begin rock mining operations with a permit to process aggregates within the next 4-8 weeks. Their low end projections are 1000m3/day in building materials. A qualified civil engineer with many years experience in rock mining will begin transporting the plant to Guaduas next week. He visited the site earlier this month an uncovered vast amounts of high quality white and black rocks. The white rocks are gravel and granite, the black rock is shale. The gravel is used for building materials, the granite may be used for tile, and the shale is used for roadways. The approximate price for gravel in Bogota is US$ 45/m3 and shale is $ 60/m3. The company has mountains of white rocks and shale. These slopes will allow them to use gravity to their favor by reducing energy costs because the rocks roll into the crushing plant. They will also do tests to determine what other mineral assets are in these mountains.
"Colombia is injecting US$ 25 Billion into the economy through infrastructure investments to spur growth. The cash flow from the building materials that may be used in these projects will help us finance our coal operations, therefore, we did not materialize the $ 1 MM term sheet previously announced," stated John Campo, President of New Colombia Resources, Inc.
The Company has received a second shipment of fertilizer from Malaysia for their test spray on African Palm trees. They are testing this fertilizer on the plantations of the largest African palm grower in Colombia. Upon successful results, they expect a multimillion dollar order from this grower. The company has decided to rescind their agreement to acquire Café Tolima Don Diego due to a disagreement with the seller. They still may work with Diego, but have decided to design their own brand and purchase organic coffee from plantations in Guaduas where they have their mining operations.
About New Colombia Resources, Inc.
New Colombia Resources, Inc. is focused on the acquisition and development of high-quality metallurgical coal properties and other available resources in the Republic of Colombia. They expect to have several revenue producing businesses including; metallurgical coal mining, African palm distribution, and traditional and organic coffees. They own 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 MM tonnes of reserves. They have another pending acquisition for 390 ha and a solicitation contract for 184 ha metallurgical coal concession. In May 2014 they are planting 3000 African palm trees for the production of bio-diesel in Colombia and they are entering the organic coffee business. Once the necessary financing is obtained, the Company plans to have additional revenue producing business units in Colombia: coal mining, coking oven facilities, docks, river, and rail transportation to export terminals in Colombia. For more information on the Company visit www.newcolombiaresources.com.
Transportation, Logistics and Other Information
New Colombia Resources intends to sell their coal at the mine's gate unless they enter into off-take agreements. Upon proper financing, the Company plans to build or acquire river or rail loading facilities on the Magdalena River close to their mines. The coal will be trucked to these distribution centers, and then barged via the Magdalena River or by rail to terminals in Barranquilla, Santa Marta, or Cartagenafor export. Initially they will use existing logistics providers while their transportation projects are being developed. After the rail projects and the "Road to the Sun" project are completed, New Colombia Resources will have one of a few metallurgical coal mines in the World with river, rail, and road access to coal export terminals on both the Atlantic and Pacific Oceans.
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 may 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.