|By PR Newswire||
|August 19, 2013 06:00 AM EDT||
SEATTLE, Aug. 19, 2013 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or the "Company"), a U.S.-based company with a track record of profitable coal operations in China, provided a strategic update on acquisitions, management and operations.
L&L Forms Strategic Partnership to Execute Large Acquisition
As discussed on January 31, 2013, the Company's Board of Directors have decided focus on acquiring large mining operations in North China with annual production of over 1 million tons. Over the past few months L&L's internal due diligence team, led by L&L Directors Dr. Syd Peng and Mr. Jingcai Yang, have identified two large operating mines (the "Targets") in North China that fit L&L's criteria for production, safety, and efficiency.
While the Company believes its valuation is undervalued, management is pursuing additional resources to bring value to its shareholders. L&L is pleased to announce it has formed a strategic alliance with previously announced partner Tianjin Fuhao, a subsidiary of Tianjin Materials and Equipment Company, one of China's largest enterprises ("Tianjin") and a private logistic company in Beijing to complete an acquisition of one of L&L's Targets. (See link on L&L's website for information on Tianjin.)
Tianjin, with its financial strength, will contribute the majority initial funding needed to acquire a Target. L&L in return operate and pre-sell coal from the Target to Tianjin once L&L secures controlling interest. The private logistics company will also provide additional funding and benefit from future transactions.
Dickson Lee, L&L Chairman & CEO commented, "With such a strategic alliance in place, I feel confident we will execute an acquisition of a large mining operation before the end of the calendar 2013. We have been working to identify a mutually beneficial project with Tianjin Fuhao since August of 2011 and I look forward to utilizing all three parties' resources to benefit from this acquisition."
James Schaeffer Joins L&L Management Team
Mr. Schaeffer, current L&L Advisory Board Member, will join L&L's management team as a Director of Operations, helping the Company evaluate new energy opportunities in the US as management believes US operations would improve LLEN's visibility and shareholder value. Mr. Schaeffer is an experienced executive with thirty years of mining and exploration experience in both the US and Asia. He was formerly President of John T. Boyd's China operations, and a CEO of a Hong Kong energy company. Mr. Schaeffer holds an MBA from University of Pittsburgh, and is a member of the American Society of Mining, Metallurgy and Exploration.
L&L to Dispose Hong Xing Washing Facility
The Hong Xing Washing facility is L&L's smaller coal washing plant located in Shezone County, Yunnan Province ("Hong Xing"). Over the past few months L&L management decided to wind down operations due to increased needs to capital expenditures. Management has decided Hong Xing will not be accretive to L&L in the long run and has stopped Hong Xing's washing operations. Hong Xing facility is to be sold or disposed to an interested buyer as soon as possible.
Forward Looking Statements
The statements containing words that are not historical fact, including statements related to Company's Litigation Reform Act of 1995, and that involve a number of uncertainties. Actual results of the future events described in this document could differ materially. 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.