New Colombia Resources announces that on October 30, 2013 they filed an environmental impact assessment (EIA) with the Agencia Nacional de Mineria of Colombia. Today the Company is submitting the EIA to the Regional Autonomous Corp (CAR) of Guaduas. New Colombia Resources owns Concession Contract ILE-09551 for the exploitation of Coal and other Concessionables in Guaduas, Colombia. The company has submitted applications for 184 ha to the east and 3396 ha to the south of Contract ILE-09551. New Colombia expects to re-acquire a concession contract for 390 ha to the west of ILE-09551 through a court order. The baseline of the environmental impact assessment covers all of these areas.
In order to begin mining operations in Colombia an environmental license and work permit are required. By reaching this milestone the company is within a few months of beginning their coal mining operations. The Company re-submitted their work plan earlier this year and expects it to be approved shortly after filing the EIA. The environmental permit significantly increases the value of the mining concession.
An environmental permit along with the concession contract allows New Colombia to finance machinery through a letter of credit from a Colombian bank or through the Export Import (Ex- Im) Bank of the United States. The Ex-Im Banks mission is to support U.S. jobs through exports. The Ex-Im Bank helps U.S. businesses sell products internationally by insuring loans made to foreign buyers. Foreign buyers may also obtain competitive financing with extended repayment terms to buy U.S. -made capital goods and services.
New Colombia is in talks with an authorized agent in Bogota of Ring Power Corporation of St. Augustine, FL. Ring Power is one of the largest Caterpillar dealers in the world and works closely with the Ex-Im Bank to help their international customers obtain financing that doesn’t begin to be paid back for up to three years. Payments for letters of credit typically begin after one year.
Representatives and accountants from the authorized agent will submit all of the paperwork necessary to Ex-Im Bank in order to obtain 100% financing at competitive rates for the company’s Colombian subsidiary, Minera San Jose Ltda. They will handle every aspect of obtaining loans based on their concession contract, environmental permits, potential sales contracts, and projected balance sheet. Ring Power will provide refurbished or overhauled Caterpillar equipment and deliver it CIF (Cost, Insurance, and Freight) to the port of Barranquilla or Santa Marta. It is the company’s responsibility to transport the equipment to their mine in Guaduas. New Colombia representatives will choose and inspect the equipment in Florida before it is delivered. The Company plans to meet with representatives from the Ex-Im Bank in Colombia on Friday.
“We decided to hold off on drilling until we get back the 390 ha in order to include both concessions in the N.I. 43-101. I think our money is better spent submitting the EIA in order to get into production as soon as possible. We are very pleased that we don’t need to dilute the company in order to finance our machinery. We are committed to staying away from any dilutive financing structures,” stated John Campo President of New Colombia Resources, Inc.
For more information visit www.newcolumbiaresources.com
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