MIAMI, June 5, 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, is pleased to announce they have received an intent to purchase up to 600 m3 per day of aggregates from their mine. If accepted by New Colombia Resources, the company will enter a formal contract. This intent to purchase is for at least $ 675,000 or more per month depending on the lab results of the material. The approximate price for gravel in Bogota is US$ 45/m3 and $ 60/m3 for shale. The company has mountains of these building materials
New Colombia Resources is focused on bringing their coal mining operations online while taking advantage of the high demand for aggregates which are abundant on their mining title in Colombia. They have been in negotiations with several interested buyers for raw building materials and will make a decision on the final buyer when the test results of the aggregates are finalized by the laboratory doing the analysis. The Company feels they are in a dominant position since rock quarries in and around Bogota have been closed by the environmental authorities limiting supply, increasing prices, and availing rock mining equipment. The company's goal is to sell material to end users and expects to have several more purchase orders.
New Colombia Resources entered into a purchase contract for a rock crushing plant capable of producing over 100 m3 per hour. The plant is being moved to their mine site in Guaduas this week and the company expects to have it set up by the end of June. They will begin processing aggregates as soon as the plant is set up and the permit to process aggregates is approved. The Company believes the permit will be approved by June 30.
A video of this crusher running idle is posted on the homepage of the company's website, www.newcolombiaresources.com.
The Company visited the work site last week with representatives of a transportation company to move the aggregates from their mine to a storage yard. The transportation company proposed providing 25 dump trucks for this operation on a contract basis. The materials will be moved by larger dumpers from the storage yard to their customers. New Colombia has received a proposal from an operator to produce 1000- 2000 m3 per day using their crushing plant. The company believes owning the crushing plant and contracting operations and transportation is the most efficient method to begin production. They are reviewing these proposals, along with others, and will make a decision by the end of June.
Colombia is injecting US$ 25 Billion into the economy through infrastructure investments to spur growth. New Colombia will benefit by selling materials for these projects and using the new infrastructure to transport their coal to export markets. The cash flow from the building materials will help finance their coal operations.
The Company will benefit from the dredging of the Magdalena River which will reduce transportation costs for oil and coal producers from central Colombia. For more information on this project visit http://www.bloomberg.com/news/2014-05-28/mississippi-inspired-plan-seen-lifting-colombian-coal-exports.htm
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 several revenue producing businesses including; 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 May 2014 they are planting 3000 African palm trees for the production of bio-diesel in Colombia and they are entering the organic coffee business. 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.
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. Upon proper financing, 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., mining subsidiary
Cia. Minera San José Ltda.
Kra. 3 # 2-52
SOURCE New Colombia Resources, Inc.