BOGOTA, Colombia, Nov. 20, 2014 /PRNewswire/ -- New Colombia Resources, Inc. ( OTCQB: NEWC) ("New Colombia or the Company"), a U.S. company with coal and other resource assets in Colombia, released their financial results for the third quarter of 2014. The Company is pleased to announce an increase in Assets of over 93% compared to December 31, 2013. Accounts payables decreased by 60%, including an 83% decrease in payables to related parties. The decrease in related party and unrelated party payables was offset by an increase in notes that cannot be converted for six months and help provide needed working capital. New Colombia also paid off two convertible notes in order to reduce potential share dilution to maintain shareholder value. The Company plans to significantly reduce their liabilities and increase their assets in the current quarter.
New Colombia Resources has been in preliminary negotiations with coal buyers in the U.S. and with rock and phosphate buyers in Colombia. These negotiations have allowed New Colombia to evaluate the best plan of action for establishing long term sales agreements for the Company's production. Because of mine closures in the United States, there is increased interest from buyers to import New Colombia's high quality coal to the Gulf Coast. U.S coal imports from Colombia have increased by 45% this year, 74% of coal imports to the Gulf Coast are from Colombia.
John Campo, President stated, "I've have been contacted by three of the biggest coal companies in the U.S. and one of the largest commodity traders in Europe, I'm very confident we'll be able to secure contracts, off take agreements, and/or partnerships in the near future".
New Colombia's pending environmental license to allow for full operations has generated no comments or request for additional information from the environmental agency. The company expects no issues with the environmental license other than normal delays caused by short staffing at the agency. Company officers will be visiting the agency on November 21.
Contractors have completed building two 27-foot custom trailers for New Colombia's crushing plant. Once the crushing plant is installed onsite and the environmental license issued, the Company will begin to generate revenue based on purchase agreements. In addition to using independent machine operators, the company is inspecting earth moving equipment in Colombia for purchase. The value of U.S dollar vs. the Colombian peso (COP) has increased over 10% in the past few months which gives the Company more purchasing power.
New Colombia Resources has identified several public vehicles for the spinoff of their Sannabis S.A.S subsidiary. Further information will be provided in due time.
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 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 hectares and a solicitation contract for 184 hectare metallurgical coal concession. 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.
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.
New Colombia Resources, Inc., mining subsidiary
Cia. Minera San Jose Ltda.
Kra. 3 # 2-52
SOURCE New Colombia Resources, Inc.