This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
July 2, 2012 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or "Company"), a
Seattle-based company with a five-year track record of profitable coal operations in
China, announces that it will use an equity interest swap with Union Energy as part of the acquisition of the LuoZhou Mine.
June 2012, Union Energy entered into two MOUs to sell controlling interest in two of its mines to L&L. One of which, the LuoZhou mine ("LuoZhou, the Mine"), is scheduled to begin full production in fall of 2012.
DaXing Co., L&L's recently established wholesale subsidiary in
Guizhou, has entered into thermal coal contracts with large end users including, Datang Power Co. By acquiring LuoZhou and the Lashu Mine in near future, both of which produce high quality thermal coal, L&L will increase the available thermal coal for its wholesale operations, further increasing efficiency.
To update, L&L will swap non-strategically held interests in its coking coal mine in
Guizhou as payments-in-kind, the Zone Lin coking facility, shares of L&L common stock and a cash deposit, in exchange for 50% controlling interest of the operations of LuoZhou. LuoZhou is designed to meet the higher government mining standards and produces low sulfur, high BTU thermal coal. The Mine is currently in trial production and will reach its approved rate of 150,000 tons per annum by fall of 2012 (on reserves of 27 million tons), with targeted expansion to 450,000 tons. When at full production, LuoZhou is expected to generate approximately US
$70M a year in revenues, with an estimated net profit margin of 31%. The specific terms for this transaction have not been finalized and are subject to final reviews.
Union Energy will diversify its product portfolio and expand its customer base by acquiring coking facilities and coking coal mines.