After announcing their intent to diversify energy Operations, First Colombia Gold Corp. (otcpink:FCGD) announced today that they have signed a binding letter of intent to lease coal mineral rights to approximately 102 acres of permitted land in Clay County Kentucky. The letter of intent acknowledged by Doug and Sarah Bowling is the next step for First Colombia to enter into the coal industry and capitalize on the coal sector resurgence.
Landowner, Doug Bowling, stated, “We are excited to have First Colombia begin its operations with our property. The past decline of the coal industry made coal mining activity slow in eastern Kentucky. We are confident that this new relationship will work to revive coal in this area.”
The 102 acres has three primary seems of coal known as the Haddix, Fireclay, and Amburgy. Past mining activity on the property had located coal seams from 48” to 55”. Jason Castenir, CEO of First Colombia Gold Corp. stated, “We are very optimistic about our entry into the coal industry sector. The Bowling lease will provide an excellent location for mining. The coal overburden and the mine location make this a desirable fit for the model that we are developing.”
The coal mine will be located outside Manchester Kentucky. The mine location will give First Colombia Gold Corp. the option to sell the coal through either the Eastern Kentucky Market or through access to the Norfolk Southern Rail system.
Somerset Kentucky currently has a dormant coal processing terminal located next to Norfolk Southern's Cincinnati, OH/Louisville KY to Chattanooga, TN mainline. First Colombia Gold Corp. CEO, Jason Castenir, stated, “In our model, we would like to use the coal located within reasonable distance of the Norfolk Southern’s Cincinnati to Chattanooga line to provide a wider market for the coal. Ideally, we will be able to seek access to the terminal and/or the line and further expand our coal industry model.”
First Colombia Gold Corp. is seeking to complete the coal leasing phase by May 2017 and attempt to capitalize on the better than expected weather for mining activity.