BARRANQUILLA, Colombia, November 18, 2016 /PRNewswire/ --
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, has entered into a joint venture to build out metallurgical coal Concession Contract JC3-15231 located in Cucuta, Colombia. This Concession Contract has an approved Work Plan and an environmental license which allows revenue generating production to begin immediately. The San Gregorio Mine has an area of 1050 hectares with estimated reserves of over 40 Million tonnes of high quality metallurgical coal. The mine is equipped with a fenced stockyard secured with surveillance cameras with a 50,000 tonne capacity. The property has a 60 tonne scale with digital systems and fully equipped offices. More than 15 coal mines in production are close by to strengthen any supply requirement.
Small scale mining has been done at the San Gregoria Mine, this venture is established to bring the mine to large scale production. The first step to bring the mine to production is to build out housing facilities for workers, a water reclamation system, mobilization of equipment, trucking, and management of personnel. New Colombia Resources and their joint venture partner have identified all the service providers needed to begin an efficient and profitable mining operation. Soaring metallurgical coal prices allow for substantial profits to be realized. A strong U.S. Dollar versus the Colombian Peso (COP), coupled with a low cost of production, makes this a very attractive venture for investors. Metallurgical coal prices have reached a five-year high of over $ 300 per tonne earning coking coal the hottest commodity of 2016, prices started the year at about $ 70 per tonne.
The Company plans to produce 15,000 tonnes per month of metallurgical coal in Q1 of 2017, scaling up to 30,000 tonnes per month by year end. The distance from the mine to export terminals in Barranquilla is approximately 400 miles or 12 hours by truck, improvements to the Magdalena River allow the use of barges creating substantial transportation savings. Although their joint venture partner has exiting indications of interest backed by a bank guarantee, they will focus on entering into a new purchase contract at existing benchmark coal prices. More details will be provided in a Form 8K filed with the Securities and Exchange Commission.
New Colombia Resources believes this venture compliments their existing developing metallurgical coal mines in Guaduas and allows cash flow to begin immediately. Company contacts for coal buyers and investment bankers will accelerate large scale production at San Gregorio. The Guaduas mining project is expected to also begin in Q1 2017 once a permit adding raw building materials is granted for their approved work permit for coal. Initial plans in Guaduas were to begin processing raw building materials to supply the many local infrastructure and construction projects in the area, then begin coal production. This joint venture will accelerate the production of coal in Guaduas to satisfy the demand of existing metallurgical coal buyers in Cucuta while supplying building material to local projects.
New Colombia received an indication of interest to develop their coal mines to supply thermal coal to a proposed power plant to be built in Guaduas. A meeting with top officials at the Agencia Nacional de Mineria (ANM) and the Minister of Energy is being coordinated once itineraries are confirmed.
Coal mining companies, including Cloud Peak Energy and CONSOL Energy have seen significant share appreciation since the price increases in coal and the election of coal friendly President Elect Donald Trump. The Company feels this is the right time to enter into this venture.
In addition to mining, New Colombia Resources also has a medical marijuana joint venture manufacturing medical products since 2014. To view or purchase Sannabis products visit http://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 http://www.sannabis.co. For more information on the Company visit http://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.
New Colombia Resources, Inc.
SOURCE New Colombia Resources Inc.