New Colombia Resources announces LOI for $200m to develop coal mine project in Colombia
New Colombia Resources, a Colombian company listed in the U.S. with premium metallurgical Blue Gem and thermal coal mining titles and medical marijuana operations in Colombia, is pleased to announce a Letter of Intent (LOI) to develop their 2900 acre metallurgical and thermal coal concession in Colombia.
Erasmo Almanza, Director of New Colombia Resources, Inc. received a copy of a Letter of Intent from a major construction company in China to participate in the development of New Colombia's coal project.
The construction company would like the opportunity to participate in negotiations with the consortium that will develop this Project.
Due to confidentiality agreements, the Company will not identify the consortium which includes the participation of a major power company from Korea interested in building clean coal fired power plants near the coal concession to supply much needed power to Colombia.
Legally binding obligations with respect to the contemplated transaction will only arise upon execution of a definitive agreement and related agreements with respect to the transaction. The LOI is issued for the purpose of confirming the investment of the Coal Mine Project for Concession Contract JJF-15481, items in the LOI include.
A. Item: Development of Coal Mine Project in Colombia
Place of Certification: Colombia Energy Mining Bureau
Mining License number: JJF-15481
Location: City of Guaduas, Cundinamarca, Colombia
Components of the Investment:
Land Purchasing and development cost for coal mines: $ 100 Million U.S. Dollars
Working Capital: $ 100 Million U.S. Dollars
Total Investment: $ 200 Million U.S. Dollars
The Company received approval from the Agencia Nacional de Mineria (ANM) of Concession Contract JJF-15481 for 1186 ha. (2930 acre) for coal and other grantable minerals.
Concession Contract JJF-15481 was signed between the National Mining Agency (ANM) and Erasmo Almanza, Director of New Colombia Resources and is 11 KM parallel to the Ruta del Sol mega road project that connects central Colombia to the Caribbean coast.
Transportation of coal and raw building materials from this concession will benefit greatly from the Ruta del Sol to the Atlantic Ocean. The Company will also benefit from the new roads to the Pacific Ocean which is closer to their coal concessions. The sizable mining title stretches two municipalities, Guaduas and Caparrapi.
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 Resources would also like to announce that Colombia's first license by the Ministry of Health to process and export medical marijuana products was issued to a Canadian company.
This license does not allow for cultivation of marijuana since that license is issued by another agency. The Canadian company has said they don't expect to have products for 18 months. The Ministry of Health announced they expect to issue 6 more licenses soon.
New Colombia Resources' medical marijuana joint venture in Colombia, Sannabis SAS, has applied for a license to process and export medical marijuana products with the Ministry of Health.
The difference is that Sannabis can legally cultivate medical marijuana since they operate on an Indian reservation allowed to grow and process their sacred plants. New Colombia believes with the approval of an export license from the Health Ministry they will be the first to legally export their line of medical marijuana products that they've produced since 2014.
Source: Company Press Release