BOGOTA, Colombia, April 22, 2016 /PRNewswire/ --
New Colombia Resources, Inc. (OTC: NEWC), a U.S. company with natural resource assets in Colombia is pleased to post this letter to shareholders…
I'm happy to report that we are finally on the path to significant cash flow. We realize the extreme importance of being current with our SEC filings and are taking steps to do so. Our limited cash resources were used to build two businesses, aggregate and coal mining and Medical Marijuana products in Colombia. Company current assets, most liabilities, subsidiary ownerships, business plans, etc. are all in the 2014 audited 10K Annual Report filed last year.
To our service providers and debt holders we appreciate your patience and belief in us. We are making every effort to prepare our 2015 10K Annual Report and subsequent Q1'2016 quarterly report. Our accounting firm should be able to move quickly once they receive payment. Before last year New Colombia Resources had never been not current and always filed on a timely manner. Going forward we don't anticipate this happening again as we aim to trade on a higher exchange.
Our Sannabis subsidiary is a medical marijuana pioneer in Colombia operating in an area notorious for growing high quality marijuana all year round. Our partner, Juan Pablo Guzman, began spearheading a legal hemp and cannabis industry in this region 20 years ago. A recent article labeled this area as the "Lost City of Marijuana." Click here for photos http://qz.com/652788/the-biggest-losers-from-colombias-historic-peace-deal-poor-marijuana-farmers/
Our aim is to change from "lost city" to "burgeoning city" by socializing our project to indigenous families to grow for us on the reservation using our strict organic and security protocols. Many have embraced us and are now proud to be involved in this legal industry providing their native medicine to the ill while providing for their families. Most indigenous families strongly oppose illegal drug trafficking and are anxious to not only grow quality organic medicine but create ancillary businesses that will provide value added jobs and products. They have used the cannabis plant to cure for generations and can't comprehend the fuss it causes around the world. We're committed to dominating the domestic medical cannabis market in Colombia, however, I'm focusing heavily on the international market to sustain our region.
Late last month we hosted a representative of the Ministry of Justice's Drug Policy Council that was responsible to drafting the presidential decree legalizing medical marijuana last year. He was impressed with the protocols we use for organic growing and processing, and security. We use strict measures to guarantee no illicit marijuana will leave our facility. The transparency with them since our beginning in 2014 has paid off greatly.
This past Saturday mayors of the municipalities mentioned in this article visited our medical marijuana fields and laboratory on the Nasa Indian Reservation. We hosted a 3-hour discussion and education seminar on this new industry using Sannabis as a model of how a legal medical cannabis business should operate. We expect joint ventures with these municipalities and will announce them one at a time. We operate in a conflict zone that will benefit from Colombia's pending peace deal. Many organizations are looking for projects to fund that will put people to work in this region, several international organizations are interested in what we're doing.
We'll announce significant sales, joint ventures, and associations as they happen.
Yesterday the Vice President of Colombia inaugurated the construction of the San Miguel Interchange of the Ruta del Sol road project, part of Section 1 of the 1000 km mega project. Section 1 is all complete except 23 km that runs through our property. We will supply the material for this road then use it to move coal to the ports. Click here to read about the inauguration http://www.radiosantafe.com/2016/04/21/con-intercambiador-vial-san-miguel-avanza-comunicacion-de-villeta-con-guaduas-y-la-ruta-del-sol-1/
New Colombia Resources owns Concession Contract # ILE-09551 for coal and other minable resources. Our Blue Gem Coal is used to make silicon metals for solar panels, electric car batteries, and portable electronics. Although we have exceptional quality coal and our work permit was approved in late 2013, the coal industry collapsed so we turned our attention to aggregates to supply the many local road projects in Colombia. In 2014 we purchased a rock crushing plant capable of processing 1000 m3/day. This past January South American Explorations completed a comprehensive Work Plan for extraction of building materials that we submitted to the Agencia Nacional de Mineria (ANM) in February.
We received notice this week that the mining agency will perform a site visit on April 27, this is the final step to approvals. The submitted work plan is for one work shift of 225,000 m3/year of processed aggregates, our breakeven point is 135,000 m3. Anticipated sales for the first year of operation will exceed $ 3,000,000, the cash flow will be used to begin extracting metallurgical coal. I'm in discussions with Kentucky metallurgical coal miners that sold out in Kentucky but still have huge equipment, experience, and customers we can use. I expect coal from Colombia to replace the metallurgical not being mined in the U.S. but has increasing demand. Colombia is the largest importer of coal into the U.S.
We are setting up a meeting with the road contractor this week to enter into a purchase contract. We are in Guaduas, to see the road project click http://www.consorciovialhelios.com/proyectos.php?seccion=3
To learn more about investing in the Building Material industry in Colombia visit http://www.investincolombia.com.co/sectors/manufacturing/building-materials.html
Some of you have been here to see our operations, I invite all of you to do the same. Please email me for documentation of any item mentioned is this letter. I look forward to keeping you current on all developments.
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 and rock quarry aggregates for domestic Colombian highway and railroad building projects. The Company owns 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 million tonnes of reserves. They have another pending acquisition for 390 ha and a solicitation contract for 184 ha metallurgical coal concession. New Colombia Resources also 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.