TAMPA, Fla., Nov. 27, 2012 /PRNewswire/ -- US China Mining Group, Inc., ("US China Mining") (OTCQB: SGZHE) a Chinese leader in coal production and exploration in the People's Republic of China, today announced that its board of directors has authorized a share repurchase plan ("the Plan") under which the Company may repurchase up to a total amount of 500,000 its own shares, from time to time over the next nine months.
Under the Plan authorized by its board of directors, US China Mining may repurchase up to a total amount of 500,000 shares over the next nine-month period. The Chief Executive Officer is authorized and directed by the Plan to determine the number and price to be repurchased from time to time in open market transactions, and to determine the timing and other relevant terms of such repurchases, depending on market conditions and in accordance with applicable rules and regulations. US China Mining plans to fund repurchases made under the Plan from its existing cash balance. All shares to be repurchased pursuant to the Plan shall be held as Treasury Shares.
"We believe that the current price of our company severely undervalues our company and the board's decision to implement the share repurchase plan reflects its strong belief in the strength of our businesses," Mr. Hongwen Li, Chief Executive Officer of US China Mining, commented. "Although we are facing some unprecedented challenges in our current operations, the Company will continue in our long-term growth strategy through upgrading our existing mines and capitalizing potential acquisition of a mine in Guizhou and. At the present time, our strong balance sheet and prepaid mining rights on the reserve lead us to believe that this share repurchase plan represents an effective use of our cash and is in the best interests of our shareholders."
About US China Mining Group
US China Mining Group is a company engaged in coal production and sales by exploring, assembling, assessing, permitting, developing and mining coal properties in the People's Republic of China ("PRC"). After obtaining permits from the Heilongjiang Province National Land and Resources Administration Bureau and the Heilongjiang Economic and Trade Commission, we extract coal from properties to which we have the right to mine capped amounts of coal, and then sell most of the coal on a per metric ton ("ton") basis for cash on delivery, primarily to power plants, cement factories, wholesalers and individuals for home heating. We do not own the coal mines, but have mining rights to extract a capped amount of coal from a mine as determined by government authorized mining engineers and approved by the Heilongjiang Department of Land and Resources. Our business consists of the operations of Tong Gong coal mine in northern PRC, located approximately 175 km southwest of the city of Heihe in the Heilongjiang Province and the Hong Yuan and Sheng Yu coal mines located in the city of Mohe in Heilongjiang Province. For more information about the Company, please visit: www.uschinamining.com.
Safe Harbor Statement
This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe, expect, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risks and other factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Chief Financial Officer
US China Mining Group Inc.
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SOURCE US China Mining Group, Inc.