First Colombia Gold Corp (OTCMKTS:FCGD) is the latest in a slew of super-subpenny stocks (those that trade between .0001-.0009/share) to blow its lid on the heels of a shift in direction for the company that will see it focus on the energy sector.
It’s difficult to put a finger on exactly why these bargain-barrel-priced stocks have seen such a surge in activity, but we strive to cover any and every sector of the markets that’s trending, and triple-zero OTC stocks are, for whatever reason, very hot right now.
After recording record revenues in the second and third quarters of last year, First Colombia Gold Corp (OTCMKTS:FCGD) last week announced that they are diversifying and expanding their energy operations and actively pursuing acquisition targets within the coal industry. Citing the positive developments within the coal industry and deregulation of certain coal related requirements, First Colombia Gold Corp. stated that they have been presented with numerous opportunities within the coal sector that are proving to be very attractive.
Jason Castenir, CEO of First Colombia Gold stated, “The Trump administration has made energy development and specifically restoration of the coal industry one of their primary objectives. These efforts are creating a surge of activity and opportunity within this sector. Our leadership believes that based on the success we have had in the fuel industry along with the strength of our team within the coal sector, that we could have tremendous success within several of these opportunities.”
The company stated that they plan to update investors in the coming days on plans to put the company in a full scale coal operation and allow the company to focus on continued growth within the energy sector. Castenir continued, “We have already proven that the energy sector is one where we can have real success. Our plan is to diversify our opportunity within the energy sector by focusing on multiple outlets and taking advantage of a resurging market place as it pertains to coal.” (Source: Globe Newswire)
Less than a week following that announced shift the company followed up with the announcement 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.
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.” (Source: Globe Newswire)
The clear downside to FCGD is the fact that it practically came from nowhere in terms of price action and liquidity prior to its recent activity. Having said that, we don’t want to ignore the clear trend happening in the marketplace right now with subpenny plays. We’ll have FCGD on our radars moving forward, and all you need to do to keep up is make sure you’ve signed up for our free newsletter by submitting your email into the box below!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in FCGD stock, short or long.