New Colombia Resources Inc. Provides Update on Their Coal, Rock, and Cannabis Research Projects in Colombia
April 24 2014 - 10:40AM
Marketwired
New Colombia Resources Inc. Provides Update on Their Coal, Rock,
and Cannabis Research Projects in Colombia
MIAMI, FL--(Marketwired - Apr 24, 2014) - New Colombia
Resources, Inc. (OTCQB: NEWC) ("New Colombia or the Company"), a
U.S. company with coal and other resource assets in Colombia, is
providing an update to shareholders on their projects in
Colombia.
New Colombia Resources is
focused on bringing their mining operations online while taking
advantage of other opportunities. In addition to mining, they
are discussing clinical trials with a pharmaceutical company in
Colombia for cannabis based products. These trials will be
designed by a U.S. specialist so they can be used as data for
eventual submission to the FDA by New Colombia or other
companies. They will work with their pharmaceutical partner to
gain the necessary approvals. Colombia's President Santos in
an interview with the WSJ this week said, "How do I explain to a
peasant in Colombia that I have to put him in prison for growing
marijuana when in Colorado or in Washington state, it's legal to
buy the same marijuana?"
New Colombia Resources is
pleased to announce they have filed for their environmental license
with the local environmental authority for their high quality
metallurgical coal concession. The Company expects comments
then approval within a few months. Their work plan (PTO) was
approved on Dec. 23, 2013. They will begin processing aggregates in
the coming weeks with a newly reconditioned rock crushing
plant. New Colombia Resources has executed a purchase
agreement for this plant payable in monthly installments. The
crusher is capable of producing over 100m3/hour.
A video of this crusher
running idle will be posted on the homepage of the company's
website, www.newcolombiaresources.com.
The Company was not able to
begin their rock quarry operation in the first quarter due to talks
with a major U.S. coal miner interested in an asset swap of
metallurgical coal for rock mining equipment. The U.S. miner
decided after two months of consideration to wait until New
Colombia was ready to begin coal mining and completed their
technical study. The Company met with John T. Boyd & Co.
to begin an Advisory Memorandum for their concessions which will
lead to an N.I. 43-101. The company is negotiating financing
for the approximately $ 300,000 needed to begin rock mining.
Upon financing, New Colombia
Resources, through majority owned subsidiary Compañía Minera San
Jose Ltda, will begin rock mining operations with a permit to
process aggregates within the next 4-8 weeks. Their low end
projections are 1000m3/day in building materials. A qualified
civil engineer with many years experience in rock mining will begin
transporting the plant to Guaduas next week. He visited the
site earlier this month an uncovered vast amounts of high quality
white and black rocks. The white rocks are gravel and granite,
the black rock is shale. The gravel is used for building
materials, the granite may be used for tile, and the shale is used
for roadways. The approximate price for gravel in Bogota is
US$ 45/m3 and shale is $ 60/m3. The company has mountains of
white rocks and shale. These slopes will allow them to use
gravity to their favor by reducing energy costs because the rocks
roll into the crushing plant. They will also do tests to
determine what other mineral assets are in these mountains.
"Colombia is injecting US$ 25
Billion into the economy through infrastructure investments to spur
growth. The cash flow from the building materials that may be
used in these projects will help us finance our coal operations,
therefore, we did not materialize the $ 1 MM term sheet previously
announced," stated John Campo, President of New Colombia Resources,
Inc.
The Company has received a
second shipment of fertilizer from Malaysia for their test spray on
African Palm trees. They are testing this fertilizer on the
plantations of the largest African palm grower in
Colombia. Upon successful results, they expect a multimillion
dollar order from this grower. The company has decided to
rescind their agreement to acquire Café Tolima Don Diego due to a
disagreement with the seller. They still may work with Diego,
but have decided to design their own brand and purchase organic
coffee from plantations in Guaduas where they have their mining
operations.
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 Cartagenafor
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.
Company Contact: New Colombia Resources, Inc. John Campo
President/Chairman (1)-410-236-8200 USA
jcampo@newcolombiaresources.com New Colombia Resources, Inc.,
mining subsidiary Cia. Minera San José Ltda. Kra. 3 # 2-52 Guaduas,
Cundinamarca Colombia (57) (1) 846-6579
www.newcolombiaresources.com