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Oct. 22, 2012 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or "Company"), a
Seattle-based company with a track record of profitable coal operations in
China, announces that it expects to finalize the acquisition of two new mines, the LuoZhou Mine ("LuoZhou") and LaShu Mine ("LaShu"), in the next 30 days.
Both LuoZhou and LaShu are newly constructed mines located in HeZhang County, Guizhou Province China, near L&L's Weishe Mine. The two mines produce low sulfur, high BTU, anthracite coal with approximately 34.2 million tons of combined coal reserves. LuoZhou has 27 million tons of reserves and in accordance with the newly adopted mining standards set by government, has completed its trial production. It is anticipated to produce at an initial annual rate of 200,000 tons in December, ramping up to its approved rate of 300,000 tons per year over the subsequent months. LuoZhou is targeted to expand to 450,000 tons by the end of 2013. LaShu is starting its trial production process and will initially produce at a rate of 150,000 tons per year and ramp up to its approved rate of 300,000 tons. Both mines are currently owned by Union Energy ("Union"), a partner of L&L.
Union owns a portfolio of 7 mines in HeZhang County. As disclosed earlier, Union wishes to diversify its mining portfolio and to expand its customer base with L&L. L&L's acquisition of approximately 90% controlling interest in LuoZhou and LaShu will be structured as an equity interest swap for L&L's coking coal mine and its Zone Lin coking facility. Details of the swap are being reviewed by advisers and the transaction is expected to be completed within 30 days. Subject to final valuation, L&L may issue cash and/or a small amount of LLEN shares to Union as additional consideration under the swap.