CD International Enterprises Enters into Letter of Intent to Acquire 100% of EM Resource Enterprises

DEERFIELD BEACH, Fla., Sept. 15, 2014 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas, today announced that it has entered a letter of intent to acquire a 100% equity interest in EM Resource Enterprises, Inc. ("EM Resource"), a Miami-based mineral and energy trading company. 

The letter of intent calls for CD International to issue a three-year promissory note of $2 million and $13.4 million convertible preferred stock. The convertible preferred stock can be converted common stock in three years after the completion of the acquisition. The conversion price will be determined based on the average closing price of CD International's common stock for the ten days immediately preceding the day of closing.  The Company expects to complete the acquisition on September 30, 2014. The Company intends to file a Form 8-K/A disclosing ERM's financial statements for EM Resource on or before December 15, 2014. The Company is also working on the completion of its previous financial statements for fiscal 2013 and 2014 which it expects to file prior to that date.

EM Resource, founded in 2010, is engaged in international trading business in industrial commodities such as iron ore and energy commodities such as diesel fuel. According to unaudited financial statements, EM Resource generated revenues of approximately $30 million and $50 million in the calendar year of 2012 and 2013. EM Resource has approximately $11.5 million in shareholder equity as of June 30, 2014.

Commenting on the announcement, Dr. James Wang, Chairman and CEO of President of CD International said "We are very excited to enter into this letter of intent with EM Resource and are working diligently to close this acquisition by September 30, 2014. We believe this business combination will elevate our mineral business to a much higher level in fiscal 2015.  Management of EM Resource has strong connections in South America and has shipped out over 1.2 million tons of iron ore in 2012 and 2013. We believe their business and shipping expertise in South America coupled with our projects and sourcing capabilities will have a very synergetic impact on our business expansion plans in South America."

About CD International Enterprises, Inc. 

CD International Enterprises, Inc. (OTCQB: CDII), is a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services. Headquartered in Deerfield Beach, Florida with corporate offices in Shanghai, CD International's unique infrastructure provides a platform to expand business opportunities globally. For more information about CD International, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, CD International Enterprises, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding CDII Peru and the completion of agreements with other potential investors and partners for this effort in Peru, our ability to arrange financing, our expectations regarding profits, if any, and future operating results of CDII Peru and growth in our South America operations. 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2012.

Contact:

CD International Enterprises, Inc.
Richard Galterio
Investor Relations
Phone: +1-954-363-7333 Ext. 316
Email: [email protected]

SOURCE CD International Enterprises, Inc