SEATTLE, June 14 /PRNewswire-FirstCall/ -- L & L Energy, Inc., ("L&L" or "the Company") (Nasdaq: LLEN), a U.S.-based company operating coal businesses in China, announced today that it has entered into a Memorandum of Understanding (MOU) with Shunda Mining Company to continue discussions of the acquisition of Shunda Mining Company ("Shunda), including its two existing coal mines (total existing mining production of 750,000 tons per year) and a coal washing facility (total existing annual production of 900,000 tons per year).
The Acquisition, a part of L&L's strategic expansion plans, is anticipated to be completed in 2010 will enable L&L to better serve the growing demand for coal and energy supply in China.
Under the signed terms of the MOU, L&L intends to acquire at least a 51% equity stake in Shunda and will invest an undisclosed amount in Shunda's operations. The invested capital is slated principally for use in the construction of a 1 million ton capacity new coking facility recently initiated by Shunda. Shunda recently received licensing approval from the Chinese government and has already begun construction on the coking facility which is scheduled to be operational in 16 months, contingent upon the investment by L&L. Shunda also plans to utilize joint venture funding from L&L to expand the annual production capacity at its coal washing facility from 900,000 tons to 1,200,000 tons. L&L is currently performing due diligence regarding the acquisition and at this point firmly believes that any such acquisition would be accretive in the first year.
Dickson Lee, President and CEO of L&L, stated: "We are very excited about our new relationship with Shunda Mining, and the incredible growth opportunities it affords us. We believe with the Shunda's existing mining, coal washing operations, and the anticipated new coking faculties, it will have a dramatic effect on our net income and earnings per share. We view this as a major step to become a China's premier coal provider."
About L & L Energy, Inc.
Founded in 1995 and headquartered in Seattle, L&L (http://www.LLEnergyInc.com) focuses on serving the vast energy needs of the Chinese market. L&L currently operates three profitable coal mines, two coal washing facilities, a coking coal facility, and a coal consolidation and wholesale business in Yunnan and Guizhou Provinces. L&L also has established marketing offices in Guangzhou, Shenzhen of China.
The statements contained words that are not historical fact, including but not limited to, statements using terms such as "anticipate," "plan," and other expressions, 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 factors 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.
SOURCE L & L Energy, Inc.