BARRANQUILLA, COLOMBIA--(Marketwired - Apr 26, 2017) - New Colombia Resources, Inc. ("the Company") (
New Colombia Resources would like to thank all of our shareholders that believe in the Company. It could not be a better time for New Colombia due to the geo political environment for both coal and medical marijuana, two of the hottest industries in the World. Metallurgical coal, our main asset, has seen a surge in prices to six year highs. Metallurgical coal was the best performing commodity in 2016 with a price gain of over 85% and the trend is continuing this year, on April 17, 2017 spot prices for met coal were over $ 314 per tonne. Our cost to get metallurgical to the ports in Colombia is under $ 60 per tonne.
We have two coal properties we're developing, a wholly owned concession contract ILE-09551 in Guaduas, and concession contract JC3-15231in Cucuta, which is a JV with MSG Mining Corp. Additionally, we're entering into operating agreements for 8-10 mines that are producing between 1000-4000 tonnes/month of coal each. We will ramp these to double their production to fill several orders that are being negotiated as well as an existing order announced earlier this year. We've asked the Buyer of that order for an extension on the first delivery and are awaiting their response. We'll be working with financial instruments to finance our coal activities backed by standby letters of credits from Buyers going forward.
On Monday, I had a meeting at the National Mining Agency (ANM) that provides us with coal buyers that contact the agency. Several of these contacts will be turning into contracts. The ANM has been very helpful and I greatly appreciate their collaboration. While at the ANM we were notified to accept the approval of coal Concession Contract OJ8-08091 for up to 288 hectares of coal granted on March 22, 2017, to see notice visit, https://www.anm.gov.co/sites/default/files/atencion_minero/estado_056_del_10_de_abril_de_2017.pdf
On November 11, 2013, we filed an 8K when we applied for this concession contract, visit https://www.sec.gov/Archives/edgar/data/772370/000107878213002185/f8k111213_8k.htm
The Guaduas Formation metallurgical coal seam has been exploited from Boyacá, north east of Guaduas for over 30 years. The formation forms in Guaduas, hence the name, this is a mega project that we will pioneer with several mining titles already granted and more to come. For an estimate of reserves or our first mining concession contract ILE-09551 visit, http://www.newcolombiaresources.com/assesment.php
In late March 2017, we began shipping thermal coal to Puerto Brisa to fill a 3000-10,000 tonne per month contract entered into by our subsidiary, Compania Minera San Jose Ltda. Coal is being sourced from third parties to fill this order. Approximately 15 truckloads were sent and paid for in the first 10 days until the Buyer had a problem with port capacity. Trucks were waiting up to 48 hours to offload causing shipping delays and additional stand by costs. Shipments were expected to begin last week but were again delayed due to the port issues. The Buyer has since reserved more space at the port and deliveries should commence this Friday. To see pictures of our first coal truck and port delivery click the following link, although to some these don't mean much, to me it documents the beginning of decades of coal shipments and millions of tonnes, https://drive.google.com/open?id=0BxSKP5j2FlseaDFxVHhtc1RxWlk
I've secured another port in Cienega on the Atlantic Coast with a 600,000 tonne coal yard and the ability to support 150,000 tonne ships. This port, next to Prodeco's Puerto Nuevo, has all of its environmental permits, 24-hour security, and a conveyor belt system to load coal onto mega freighters. They accept deliveries 24 hours a day and their capacity is available to us since it is mostly being used to import and distribute petroleum products that are sold to trucking companies, there are hundreds of trucks available to us at this port.
On April 15, 2017, we closed on the purchase of two farms totaling over 300 acres in Guaudas-CUNDINAMARCA, Colombia. This purchase is strategic because we now own the mining title and the land that is contiguous to our previous land purchase. Our purchase price is about 60% of the appraised value, we expect the price of our land to increase once the Ruta del Sol is completed in our area connecting these properties to Bogota. For a copy of the notary receipt of the purchase of property visit, https://drive.google.com/open?id=0BxSKP5j2FlseM204M3pDWmJCY00
We will begin gravel operations in Guaduas as soon as our environmental permit is approved, the Work Plan was approved adding gravel to our existing work plan for coal. The gravel will be supplied to the highest bidder including the Ruta del Sol project and a new airport being built in Bogota, El Dorado II which is about 60 km from our site. Work plans for the airport project about 800 Million m3 of gravel, rocks, and sand products to be used. These plans anticipate bring rock material from Tolima which is 200 km away. Many infrastructure projects in Colombia are causing a rush to secure supply. As we develop our gravel operations we will simultaneously begin coal mining activities. To view the financial model for our gravel operation visit, https://drive.google.com/open?id=0BxSKP5j2FlseOFE5TVdReGRCUUE
I'm getting interest from U.S. coal miners that want to team up with me, I'll be building a team of extremely qualified well known U.S. coal industry experts to help and mentor me in rolling up the best coal mines that will possibly complement existing U.S. operations.
In addition to metallurgical coal, we also have medical marijuana business that is getting ready to explode. Our joint venture, Sannabis SAS, has first mover advantage in Colombia with a line of 15 products in 3 different sizes. We're waiting for a Sanitary Registry number this week to begin shipping our topical creams, Sannaxhol and Sannaderm, with less than .3% THC to the U.S. We're also setting up a Sannabis SPA outside of Cali, Colombia designed for cancer patients from the U.S. and abroad that don't wish to break federal laws to use alternative medicine. The SPA is set on a multi acre hacienda equipped with all the amenities and the best round the clock care patients deserve. We will provide more detail in a PR once our promotional material is ready.
Any shareholder interested in a free sample of our topical creams or to make a reservation at the SPA, contact me at email@example.com. We have many profitable medical marijuana ventures we're developing and will be announcing them accordingly in the coming days, including several agreements with U.S. companies, particularly in our hemp business. We have over 8000 hemp plants and will planting another 50,000 plants at our new facilities to be announced. To see our hemp fields and some products we're making from hemp visit, https://drive.google.com/open?id=0BxSKP5j2FlseUVhvZVM2UUhMbW8
Finally, I would like to address the late filing of our Form 10K for 2015. Last fall, we engaged Malone Bailey (MB) to audit our 2015 annual repo, previously they audited 2012, 2013, and 2014. During the 2012 audit they advised us on the re-organization of the predecessor of New Colombia Resources, Inc., VSUS Technologies, Inc. (VSUT). I acquired control of VSUT from the previous CEO that had gotten into trouble with the SEC in 2010 over an unrelated company. I paid off $ 320,000 in debts, with no liability to the Company. I retained the former CEO as a consultant to help me navigate through the previous businesses of the Company, as is customary, with full knowledge of Malone Bailey. For the past six months our accounting firm, Albeck Financial Services, has been working with the audit staff at MB to complete the 10k to their satisfaction. After months of back and forth, it finally went to the audit partner for final review.
The audit partner, who was new to our account, determined that our report should go to a continuance committee mainly because of the issues of the former CEO who has nothing to do with present day operations of NEWC. This came as a total shock to me since they knew I had acquired the company from him when they engaged us last year and received our up-front payment for the 2015 10K and subsequent quarterly reviews for Q1, Q2, and Q3 of 2016. On April 21, 2017 at 5:04 pm, I received a letter of resignation from Malone Bailey due to their issues with the former CEO who has nothing to do with the company. Malone Bailey has their own SEC issues that in my opinion leads to greater scrutiny of their clients. They certainly have a right to resign for any reason they choose, but why they accepted us as clients in 2016 and resigned over an issue they knew about since 2012 is beyond me. They wasted some very valuable six months of our time.
I would like to apologize to shareholders for being overly optimistic about when the 10K would be filed, I was living in the past thinking the auditors would turn things around quickly as they've always done. The good news is that our accounting firm has all of the work complete and ready to submit to our new auditor who is being engaged. We will be filing a Form 8K disclosing the resignation of MB and the engagement of a new auditor that will commit to completing the audit as quickly as possible. They will be auditing Q2, Q3, and 10K for 2015, Q1, Q2, Q3, and 10K for 2016, and Q1 for 2017. This will bring us current and allow us to raise the capital necessary to finance our operations, although most coal deals will be financed with instruments that have no regard for the public stock.
We decided to file an 8K today with the unaudited preliminary annual report for December 31, 2015 and September 30, 2016. I'm happy to report that since Sept. 2016 we have extinguished about $ 800,000 in debt, in addition to the elimination of a $ 1.50/tonne royalty payment due on coal sales from our Guaduas property.
For those that have been calling and emailing the past week, although I'm always available, I couldn't reply because I needed to get this letter out first. I look forward to keeping you continuously updated with events that will spur interest in our Company and lead to significant revenue. Like always, I invite everyone of you to come to Colombia and see what we're doing, your only risk is you won't want to leave.
President, New Colombia Resources, Inc.
About New Colombia Resources, Inc.
New Colombia Resources, Inc. owns vast reserves of premium metallurgical coal mining titles and a medical marijuana joint venture in the Republic of Colombia. They are setting up a rock mining operation to supply the major road and infrastructure projects within miles of their properties. They own 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 million tonnes of reserves. They have an additional 1196 ha. metallurgical coal mining title that they are negotiating to develop with a foreign entity to build a coal fired power plant. New Colombia Resources holds a significant position in Sannabis SAS which legally produces medical marijuana products in the Republic of Colombia, visit www.sannabis.co. For more information on the Company visit 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.