Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. Enters Into New RMB 360 Million Medium-Term Loan Agreement
PINGDINGSHAN, China, April 5, 2011 /PRNewswire-Asia-FirstCall/ -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK) (the "Company" or "SinoCoking"), a vertically-integrated coal and coke processor, today announced that on April 2, 2011, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. ("Hongli") entered into a medium-term loan agreement with Bairui Trust Co., Ltd. ("Bairui"), pursuant to which Bairui has loaned Hongli the sum of RMB 360 million (approximately $54 million), of which RMB 180 million is due in two years and RMB 180 million in three years, with an APR of 6.3%. All of the Company's business operations are currently conducted by Hongli, which the Company controls through contractual arrangements. Additional details regarding the new loan agreement can be found in the Company's current report on Form 8-K, to be filed with the Securities and Exchange Commission on April 5, 2011.
SinoCoking's Chairman and CEO, Mr. Jianhua Lv noted, "The new loan significantly improves our financial position and provides us with the funds needed to accelerate our growth strategy, including the completion of the construction of the new coke facility with projected annual production capacity of 900,000 metric tons, the purchase of raw materials needed to start production at the new coke facility once construction is completed and, in addition to our ongoing consolidation, the ability to take advantage of other acquisition opportunities as they present themselves."
SinoCoking and Coke Chemical Industries, Inc., a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking currently has mining rights and capacity to extract 300,000 metric tons of coal per year from its own mines located in the Henan Province in central China. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking owns its assets and conducts its operations through its subsidiaries, Top Favour Limited, a British Virgin Islands holding company, Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd. and Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
Forward Looking Statement
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SOURCE SinoCoking Coal and Coke Chemical Industries, Inc.