L&L Energy Continues Consolidation, Enters MOU to Acquire the LuoZhou Mine
SEATTLE, June 22, 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, has signed MOU to acquire a 50% controlling interest of the LuoZhou Mine ("LuoZhou") in HeZhang County, Guizhou Province.
The acquisition of LuoZhou will mark the Company's third transaction with Union Energy, a local partner. Previous transactions include the acquisition of the Weishe Mine ("Weishe") and a recently announced MOU to acquire controlling interest of the LaShu Mine ("LaShu"). Weishe, currently in production, is now operated by L&L as a model mine in the community; LaShu is scheduled for production in the fall of 2012.
LuoZhou 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. These three mines, all located in the HeZhang County, are expected to produce more than 1 million tons of low sulfur, high BTU, anthracite coal each year. L&L will pay an earnest deposit of approximately $349,000 (RMB 2,200,000) for LuoZhou. The remaining balance will be paid in installments under other consideration, including payment-in-kind of non-strategically held interests, stock and/or cash. Terms for the remaining balance are being finalized.
Dr. Syd Peng, a mining expert and Director of L&L, commented, "We are successfully implementing our consolidation strategy in HeZhang County with Union Energy. We aim to repeat the successes of Weishe, being designated as a model mine by local authorities, at other operations. LuoZhou and LaShu will upgrade our existing mining portfolio, increase our total accessible reserves, and provide added coal to expand our wholesale operation, driving profits and growth."
L&L was incorporated in 1995 by the Company's Chairman and CEO. The Company has grown from a single employee to more than a thousand over the past 17 years. L&L has entered an expansion phase, seeking to consolidate mines in China and expand its sphere of business operations. Using its U.S.-style quality assurance processes, the Company is upgrading its mining portfolio and expanding its distribution network for strategic revenue growth.
Forward Looking Statements
The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and that involve a number uncertainties. Actual results of the future events described in this document could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
L&L Energy, Inc.
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