BARRANQUILLA, Colombia, November 22, 2013 /PRNewswire/ --
New Colombia Resources, Inc. (OTCQB: NEWC) ("New Colombia or the Company") announces plans to begin extracting raw building materials from their farm in Guaduas, Colombia. In addition to coal, New Colombia's mining title covers other resources. The farm has vast amounts of gravel, marble, granite, and other metamorphic resources. The company is in contact with road builders to enter into a supply contract. The last segment of the Road to the Sun project is in close proximity to La Tabaquera.
The company is currently scouting machinery and favorable financing to begin operations in January. New Colombia's subsidiary, Minera San Jose Ltda, is working with an agent of a U.S. CAT dealer to submit a credit application to the Ex-Im Bank to purchase equipment from the Florida dealer. In the meantime the company is focused on acquiring equipment locally to begin operations as soon as the permits are approved while this application is in process.
The environmental authorities have closed all rock quarries in Bogota, creating a sharp increase in the price of building materials. New Colombia mining operations are 60 miles from Bogota. Colombia is experiencing a boom in residential and commercial construction as well as infrastructure growth. The government of Colombia has begun the Fourth Generation Highways Project with the intent of updating major roads to international safety and speed standards. This project will improve or build over 5000 miles of roadway and is being funded through public and private capital. These roads are expected to improve Colombia's competitiveness in order to successfully take advantage of the many trade agreements signed in recent years.
New Colombia will submit an application for an environmental and work permit for raw building materials shortly. The company is preparing the application with geologists to submit to the local environmental agency. Once submitted, the company expects a site visit within 10 days followed by a quick approval. It is the company's goal to generate revenue in January 2014.
The cash flow generated from the building materials will be used to develop the coal mine on the same property. The company will be applying for a site visit for the coal operations in the coming days. New Colombia has submitted the baseline of the environmental impact study to both the National Mining Agency (ANM) and the Regional Autonomous Corporation (CAR). The company plans to begin drilling according to their drill programme once the necessary financing is in place.
"We believe we can obtain less dilutive financing with approved work and environmental permits for coal and cash flow from the construction materials," stated John Campo, President of New Colombia Resources.
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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 three revenue producing businesses; 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 October 2013 they are planting 2000 African palm trees for the production of bio-diesel in Colombia and they are acquiring an organic coffee company. 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. The Company is also exploring allegiances with U.S. and Colombian universities to study capturing Coal Bed Methane (CBM) in Colombia. For more information on the Company visit http://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. At the right time, 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 Cartagena for 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.
New Colombia Resources, Inc.
(57) 318-657-0918 Colombia
New Colombia Resources, Inc.
SOURCE New Colombia Resources, Inc.