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Sept. 25, 2013 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or the "Company"), a U.S.-based company with a track record of profitable energy (coal) operations in
China, today reaffirmed its ownership of the Luozhou and Lashu Mines and clarified previously released statements that responded to allegations made by short-sellers.
November 2012, L&L acquired a 95% equity stake in the Luozhou and Lashu Mines. L&L accomplished this by purchasing 95% interests in two Union Energy subsidiaries, Guizhou Union Energy Shun Da Inventory and Transport Corporation and Guizhou Union Energy WuZhou Energy Development Corporation, which previously owned 100% interest in both of the respective mines.
In a press release dated
September 24, 2013 the Company stated that in the Company's SEC Form 10-K for fiscal 2013, "the Company clearly states that it acquired the mines by purchasing equity interests in Union Energy subsidiaries." The release goes on to state that "the Company completed the acquisition by obtaining a 95% equity interest in two entities, 'Guizhou Union Energy Shun Da Inventory and Transport Corporation', the owner of LuoZhou Coal Mine and 'Guizhou Union Energy WuZhou Energy Development Corporation', the owner of LaShu Coal mine."
To clarify the statement quoted above the 10-K only discloses that the Company did complete the acquisition by purchasing 95% interest in both the Luozhou and Lashu mines from Union Energy through an equity ownership transfer agreement. The additional disclosure of the names of the two Union Energy subsidiaries were made to respond to short sellers questioning of L&L's ownership of mines that do not bear L&L's name. Retaining the name of Union Energy, our joint venture partner and a reputable and well-connected mining group in the region, on our operating businesses in no way influences L&L's ownership rights.