New Colombia Resources Inc (OTCMKTS:NEWC) shares were flat on Friday at $0.0280 and also unchanged in after-hours trading at $0.0280. Share prices have been trading in a 52-week range of $0.00 to $0.05. The company has a market cap of $4.32 million at 154.34 million shares outstanding.
New Columbia Resources Inc is a metallurgical coal company that is engaged in the acquisition and development of high quality metallurgical coal producers in Colombia. It is focusing on its La Tabaquera coal and rock project located in the Municipality of Guaduas, approximately 100 kilometers northwest of Bogota. The 57 hectares La Tabaquera and the 390 hectares mine La Herradura, are located to the west of the La Bermeja Ravine, crossing Rio Guaduero from north to south, with a linear extension of 2.5 kilometers north-south direction and 0.2 kilometers approximately from east-west. Its rock crushing plant has a processing capacity of over 100 cubic meters per hour of aggregates. It also has a medical cannabis business in Colombia operating as Sannabis SAS.
Earlier this month, New Columbia Resources Inc signed a $90 million purchase agreement for metallurgical coal with American Steel Industries of Philadelphia under a joint venture with a Chinese government-owned giant in the commodities and steel trading segment. American Steel Industries has been exporting steel from China for the past 12 years and is one of its largest steel exporters.
According to the company’s press release, the new contract will be filled by New Colombia’s joint venture with MSG Mining Corp. Some of the coal will be supplied by the joint venture’s Mina San Gregorio in Cucuta, Colombia while the remainder will be sourced from third-party producers. It will then be stored at New Columbia Resources Inc’s coal yard in Cucuta with a 50,000 ton capacity and industrial scale, then trucked or barged to a port on the Caribbean coast for shipment to South China. Analysts have remarked that opportunities for metallurgical coal are on a strong bullish ride from last year as demand continues to pickup and larger orders are being fulfilled.
To top it off, New Columbia Resources Inc also announced that it is developing a portfolio of medical marijuana products, and intends to submit an Orphan Drug application to the FDA in the US through a partnership with Advanced Imaging Projects LLC. Cannabis companies have been faring really well at the start of this year, following the bullish momentum sparked by the November 8 vote to legalize the use of medical or recreational marijuana in several U.S. states. This has led analysts to project that the cannabis sector could grow to $7.1 billion this year and $20 billion by 2020.
The company shared that they have reserved a spot in the USA Today’s 2017 Special Edition Colorado Rockies Preview to advertise Sannabis’ SANNAXHOL Pain Cream topical product made of cannabis sativa flower and other all natural ingredients native to Colombia. The pain cream has been tested by a licensed medical marijuana testing facility in the U.S. and shown to have minimal traces of THC, which can be imported and sold in the country.
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