The purchase price for the rock crushing plant was ca 300k. They expected to make money via the aggregates but apparently unexpectedly discovered the approval for such would take as long as the mining permit so they apparently consolidated the aggregate permit w the mining permit process- that unexpected delay in the aggregate permit process following unexpected delays in the mining permit process are the reason for the delays and the convertible notes resulting from such delays. The professional land use and scientific aspects of the permit applications are expensive-thus the need to raise money via the notes.
from the website:
Recently we purchased a rock crushing plant with processing capacity of over 100 m3/hour of aggregates which is expected to be operating in by August 2015. Demand is strong for building material in Colombia since many illegal mines have been closed as new construction and infrastructure projects come online. Construction of the final sector of the Ruta del Sol road project was approved to begin. It will consist of tunnels and bridges within 5 kilometers or our coal and rock mine. This allows us to supply road builders with aggregates, and then use these roads to move our coal to export terminals. We intend to fund our coal operations with the cash flow generated from the sale of processed aggregates.
An “Estimate of Probable Reserves and Grantable Potential of Coal at La Tabaquera Mine” report was prepared on behalf of New Colombia in September 2011. The report estimated reserves for La Tabaquera Project of 13,073,935 cubic meters for a total of 16,996,116 tonnes of bituminous coal (non JORC compliant), with 70% being metallurgical hard coking coal and 30% thermal coal.
Based on the high quality of our coal, we expect to sell at a premium to other domestic coals. We believe our mines have Blue Gem coal, only found along the Kentucky Tennessee border in the U.S. and Colombia. This coal is unique because of its low ash and high carbon content. It is in high demand for the silicon and silicon based alloy market. Beginning in 2015, New Colombia will concentrate tunnel mining its hard coking coal seams first. The Company expects to mine 20,000 tonnes of hard coking coal per month.
We own the mining title and land where we will commence operations. Our Mining Plan of Operations (PTO) was approved in December 2013 by the Agencia Nacional de Mineria (ANM). In April 2013 we applied for an environmental license which we expect to be issued soon.
Imo. Do your dd before investing. I'm not a financial adviser nor compensated for my posts. They don't believe what they say, so why should you?
