BARRANQUILLA, Colombia,
October 19, 2016 /PRNewswire/ --
Metallurgical Coal prices continue to surge, up over 300%
this year to over $
230/tonne
New Colombia Resources, Inc. (OTC: NEWC) ("New Colombia or
the 'Company"), a Colombian resource company
listed in the U.S. with premium metallurgical coal mining titles
and medical marijuana subsidiaries is pleased to report on the
status of a project to build a thermal coal power plant in Guaduas,
Colombia. Company
subsidiary, Compañía Minera San Jose Ltda. entered into
negotiations earlier this year with a foreign entity to build a 300
Megawatt thermal coal power plant near their estimated vast coal
reserves. This entity has secured a Letter of Intent for
US$ 200 Million from a major
construction company in China to
join a consortium to finance the development of the coal operations
to feed this new plant and construction of the power plant.
New Colombia Resources' Director, Erasmo
Almanza, received a report from the consortium partner on
the status of negotiations of the installation of the thermal coal
power plant in Guaduas. The report states there have been
meetings with the financing team seeking the best financing option
for the project and have modified the volume of power generation to
optimize material inventory with time. A decision was made to
program a meeting with Mr. Almanza after these adjustments are
finalized to protocolize the negotiations and establish the new
power company.
Guaduas is located 110 Km northeast of the capital of
Bogota with an estimated 10
Million people. Colombia's energy generation is dominated by
hydro-electric which causes concerns during droughts and a weather
phenomenon.
The Company's coal reserves are estimated to be 70%
metallurgical and 30% thermal, for a comprehensive estimate of
probable reserves on their first concession contract ILE-09551
visit http://www.newcolombiaresources.com/assesment.php
The concession contract to be developed by the consortium is in
close proximity to Concession Contract ILE-09551 and expected to
have a similar 70/30 ratio of coking coal to thermal coal.
The Company feels this is a major development creating a local
market for their thermal coal while developing metallurgical coking
coal that has more than tripled in price this year to over
$ 230/tonne. Additionally, the
Company has met with a multi-billion-dollar Asian conglomerate
interested in their premium metallurgical coal.
.
Goldman Sachs issued a report stating their projection that
coking coal prices will remain high.
http://www.bloomberg.com/news/articles/2016-09-23/goldman-says-higher-coking-coal-prices-are-here-to-stay
Shares in big board metallurgical coal producers like BHP
Billiton (NYSE: BHP), Consol Energy Inc. (NYSE: CNX), and Cloud
Peak Energy Inc. (NYSE: CLP) have seen significant price increases
in the past few weeks.
Additionally, Company attorney is drafting an SEC Form 8K to
address the elimination of debt that was recently being converted
into free trading shares.
New Colombia Resources' Blue Gem coal is only found on the KY-TN
border and central Colombia and is
used to produce specialty metals such as Silicone to make solar
panels, electric car batteries, and many more next generation
products. New Colombia Resources has concession contracts and
applications totaling 5000 HA of high quality metallurgical coal
that will always be needed to produce steel and other specialty
metallurgy products. Blue Gem coal miners in Kentucky are shutting down operations due to
over-regulation creating a supply void the Company intends to
fill.
New Colombia Resource also has a joint venture manufacturing
medical marijuana products and is in the process of creating
sustainable hemp industries in Colombia. 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. 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.
Company Contact:
New Colombia Resources, Inc.
John Campo
President/Chairman
+1-410-236-8200 USA
jcampo@newcolombiaresources.com
SOURCE New Colombia Resources Inc.