BARRANQUILLA, Colombia, October 31, 2013 /PRNewswire/ --
New Colombia Resources, Inc. (OTCQB: NEWC) ("New Colombia or the Company") announces that on October 30, 2013 they filed an environmental impact assessment (EIA) with the Agencia Nacional de Mineria of Colombia. Today the Company is submitting the EIA to the Regional Autonomous Corp (CAR) of Guaduas. New Colombia Resources owns Concession Contract ILE-09551 for the exploitation of Coal and other Concessionables in Guaduas, Colombia. The company has submitted applications for 184 ha to the east and 3396 ha to the south of Contract ILE-09551. New Colombia expects to re-acquire a concession contract for 390 ha to the west of ILE-09551 through a court order. The baseline of the environmental impact assessment covers all of these areas.
In order to begin mining operations in Colombia an environmental license and work permit are required. By reaching this milestone the company is within a few months of beginning their coal mining operations. The Company re-submitted their work plan earlier this year and expects it to be approved shortly after filing the EIA. The environmental permit significantly increases the value of the mining concession.
An environmental permit along with the concession contract allows New Colombia to finance machinery through a letter of credit from a Colombian bank or through the Export Import (Ex- Im) Bank of the United States. The Ex-Im Banks mission is to support U.S. jobs through exports. The Ex-Im Bank helps U.S. businesses sell products internationally by insuring loans made to foreign buyers. Foreign buyers may also obtain competitive financing with extended repayment terms to buy U.S. -made capital goods and services.
New Colombia is in talks with an authorized agent in Bogota of Ring Power Corporation of St. Augustine, FL. Ring Power is one of the largest Caterpillar dealers in the world and works closely with the Ex-Im Bank to help their international customers obtain financing that doesn't begin to be paid back for up to three years. Payments for letters of credit typically begin after one year.
Representatives and accountants from the authorized agent will submit all of the paperwork necessary to Ex-Im Bank in order to obtain 100% financing at competitive rates for the company's Colombian subsidiary, Minera San Jose Ltda. They will handle every aspect of obtaining loans based on their concession contract, environmental permits, potential sales contracts, and projected balance sheet. Ring Power will provide refurbished or overhauled Caterpillar equipment and deliver it CIF (Cost, Insurance, and Freight) to the port of Barranquilla or Santa Marta. It is the company's responsibility to transport the equipment to their mine in Guaduas. New Colombia representatives will choose and inspect the equipment in Florida before it is delivered. The Company plans to meet with representatives from the Ex-Im Bank in Colombia on Friday.
"We decided to hold off on drilling until we get back the 390 ha in order to include both concessions in the N.I. 43-101. I think our money is better spent submitting the EIA in order to get into production as soon as possible. We are very pleased that we don't need to dilute the company in order to finance our machinery. We are committed to staying away from any dilutive financing structures," stated John Campo President of New Colombia Resources, Inc.
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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.
New Colombia Resources, Inc.
SOURCE New Colombia Resources, Inc.