L & L Energy Announces Subcontract Agreement for Ping Yi Coal Mine Operations
21 1월 2010 - 2:00AM
PR Newswire (US)
SEATTLE, Jan. 20 /PRNewswire-FirstCall/ -- L & L Energy, Inc.
(OTC Bulletin Board: LLEN) ("L&L"), a U.S. coal operator
serving China's vast coal market, today announced that through its
subsidiary, Baoxing Economic and Trade Co., Ltd. ("Baoxing"), it
has subcontracted the operation of the Ping Yi Coal Mine ("Ping
Yi") located in Pingguan Town in Guizhou Province of China. Under a
fixed fee of approx. US$ 876,000 (or RMB 6 million) per year,
payable either in cash or in L&L common shares, Baoxing is
allowed to operate the Ping Yi coal mine facilities of 150,000 ton
annual production. The agreement allows Baoxing to operate Ping Yi,
to provide the necessary working capital, and to collect the
respective revenue, net profits and/or losses of Ping Yi. Under the
agreement, Baoxing is the exclusive provider of advisory and
consultancy services to Ping Yi related to the Company's general
business operations. Ping Yi's revenue, profit, or loss will be
consolidated in L&L financial statements as a variable interest
entity. L&L expects the agreement to generate approximate $15
million revenue per year, using $100 per ton coal price as a basis.
Ping Yi, a profitable coal mine with annual 150,000 tons of coal
production and 31 million tons of proven coal reserves, has been in
operation since 2007. Ping Yi is expanding its existing coal
production capacity to 300,000 tons annually. Under terms of the
agreement, Ping Yi has granted Baoxing an option to acquire Ping
Yi's equity interests. The agreement covers a period of two years
starting from November 1, 2009, and can be extended by mutual
consent. Dickson Lee, President and CEO of L&L, stated: "We're
confident that Boaxing's subcontract of Ping Yi will be valuable to
L&L's growth. This new development will extend more
opportunities to us in the region." For more information, see the
Company's Form 8-K filed on January 19, 2010, available at
http://www.sec.gov/. About L & L Energy Founded in 1995 and
headquartered in Seattle, L&L (http://www.llenergyinc.com/)
focuses on serving the energy market in China. Through its
subsidiaries, it operates profitable coal mines, coal wholesales,
coking, and coal-washing facilities in Yunnan Province.
Forward-Looking Statements The statements contained in this
document that are not statements of historical fact, including but
not limited to, statements using terms such as "anticipate,"
"expect," "intend," "plan," "could," "should," and other
expressions, including statements related to market trends and
Company's future performance, are all "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve a number of risks and uncertainties. The actual
results of the future events described in the statements in this
document could differ materially due to numerous factors and other
made by the company filing with the Securities and Exchange
Commission. Other than as required under the securities laws, the
Company does not assume a duty to update these forward-looking
statements. Contacts: Dave Gentry RedChip Companies, Inc. (800)
733-2447, Ext. 104 John Baldissera BPC Financial Marketing (800)
368-1217 DATASOURCE: L & L Energy, Inc. CONTACT: Dave Gentry of
RedChip Companies, Inc., 1-800-733-2447, Ext. 104, ; or John
Baldissera of BPC Financial Marketing, 1-800-368-1217, both for L
& L Energy, Inc. Web Site: http://www.llenergyinc.com/
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