L&L Enters Into Agreement Acquiring Majority Stake of the Weishe Mine in China
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L& L Energy has entered an agreement acquiring 51 percent controlling interest of the Weishe coal mine in China.
Weishe Mine Acquisition Highlights
— Purchase Price: Approximately $16.2 million, to be paid in full with 3 million LLEN shares at $5.396/share
— Interest: 51 percent controlling interest
— Mine Reserves: 19 million tons in a 1.8 square KM site
— Design: 450,000 ton annually
Weishe mine produces high quality, low sulfur, anthracite coal, and is one of three newly constructed mines owned by Union Energy located in Hezhang, Guizhou Province, China. The mine is expected to be expanded to its designed 450,000 tons of annual production over the next few years.
“I welcome the new Weishe mine, which is the first of many new mines we are targeting to upgrade our mining portfolio for better safety and mechanization,” said Dr. Syd Peng, L&L board member and world-renown mine expert.
“I believe in L&L and am pleased to take common shares as payment. I also look forward to the possibility of joint venturing with L&L on two other Union Energy mines, one of which is scheduled to begin producing in the spring and the other in the fall of this year,” said Mr. Po Shui, owner of Union Energy, a local Guizhou company.
“L&L Energy has been focused on executing our plan for the Guizhou consolidation. With the recently established Hong Gou operational office in Guizhou, the government’s approval of our new wholesales license, and now the addition of the Weishe Mine, we are positioning ourselves well to fully execute the two one millions ton wholesale agreements negotiated in the fall of 2011. The management team at the Weishe mine is very strong and will be excellent addition to L&L as we scale at a faster pace. To share in our excitement, we invite investors to visit our new operations this summer,” said Dickson Lee, chairman and CEO of L&L Energy.
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