New Colombia Resources Receives $200 Million LOI to Develop Coal Concessions in Colombia
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New Colombia Resources, Inc. has received a $200 million letter of intent (LOI) to develop their 2900 acre metallurgical and thermal coal concession in 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. Components of the investment include:
1) Land purchasing and development cost for coal mines: $ 100 Million U.S. Dollars
2) Working capital: $ 100 Million U.S. Dollars
3) 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 kilometers 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
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 percent 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.
To stop by New Colombia Resources’ website, CLICK HERE
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