Press Release Source: L
& L Energy, Inc. On Wednesday January 20, 2010, 12:00 pm EST
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 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
info@redchip.com
John Baldissera
BPC Financial Marketing
(800) 368-1217
