L&L Enters Into a Joint Sale Agreement with China Chengtong Metal Corporation
SEATTLE, Dec. 5, 2011 /PRNewswire/ -- L & L Energy, Inc. (Nasdaq: LLEN) ("L&L" or the "Company"), a U.S. based company since 1995 with coal mining and distribution businesses in southwest China, announced today that its subsidiary has entered into a long term joint sales agreement with China Chengtong Metal Corporation ("CCMC") to jointly market/sell one million tons of coal in China during calendar 2012, starting in February.
DaXing- L&L (Guizhou) Coal Inc., a new L&L wholly owned coal subsidiary based at L&L's Hong Gou office, entered the joint sales agreement with China Chengtong Metal Tianjin Company, a wholly owned subsidiary of CCMC, a large China state owned enterprise specializing in coal and metal trading throughout the north China and inner Mongolia markets. The Tianjin company is a market oriented sales unit with strong existing coal customers and recently demonstrated substantial sales growth. The joint sales agreement will synergize both company's resources, sales network, and share geological market information forming an integrated coal supply chain to service additional customers in the growing China coal market.
The parties will work collaboratively to source and sell/market one million tons of coal (both coking and thermal coal), in calendar 2012. The sales agreement will generate approximately $150 million in revenues if fully executed, using a $150 per ton coal price.
Dickson Lee, Chairman and CEO of L&L commented, "We are very pleased to secure a strategic partner of CCMC's caliber. Their strong existing sales channels will help expand our coal business outside the Yunnan and Guizhou provinces to the rest of China. Going forward this is a strong start for our new subsidiary. We expect this agreement to result in selling 1 million tons of coal in calendar 2012, with similar revenue impact in the subsequent years to come."
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 involve a number of risks and uncertainties. Actual results of the future events described 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.
L&L Energy, Inc.
SOURCE L & L Energy, Inc.