Puda Coal Closes Jianhe Coal Mine Acquisition
December 07 2009 - 8:30AM
PR Newswire (US)
TAIYUAN, China, Dec. 7 /PRNewswire-Asia-FirstCall/ -- Puda Coal,
Inc. (NYSE Amex: PUDA), a supplier of high grade metallurgical
coking coal used to produce coke for steel manufacturing in China,
today announced the closing of its 18% equity transfer agreement
with Shanxi Jianhe Coal Industry Limited Company ("Jianhe Coal").
In May 2009, the Company entered into an equity transfer agreement
("the Agreement") to acquire 18% of Jianhe Coal. Pursuant to the
Agreement, the stockholder owning the other 82% of Jianhe Coal
guaranteed the Company first priority rights to purchase the
remaining shares of Jianhe Coal within the 24-month period
following execution of the Agreement. The Company will be paid
proportionate semi-annual dividends based on its 18% ownership.
Total dividends for Jianhe Coal will be no less than 80% of its
annual net profit. "Leveraging our status as a consolidator of
eight coal mines in Pinglu County, we are applying to be a
consolidator in the coal reserve area where Jianhe Coal is
located," commented Mr. Zhu Liping, Chairman and CEO of Puda Coal.
"We are confident that our strategic transition upstream into the
coal mining business will increase our profitability and maximize
our shareholder value." About Puda Coal Inc. Puda Coal, through its
subsidiaries, supplies premium high grade metallurgical coking coal
used to produce coke for steel manufacturing in China. The Company
currently possesses 3.5 million metric tons of annual coking coal
capacity. Shanxi Province provides 20 - 25% of China's coal output
and supplies nearly 50% of China's coke. For more information,
please visit http://www.pudacoalinc.com/ FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking
statements. These statements relate to future events or to our
future financial performance, and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance, or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. You should not place undue reliance on forward- looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
our control and which could, and likely will, materially affect
actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. For example, our plan
to acquire and consolidate more coal mines is subject to, among
other things, the risks and uncertainties relating to the market
and geological condition, due diligence, negotiation for definitive
agreements, etc. which are beyond our control, as well as our
management's ability and capacity to execute our coal mine
acquisition strategy and manage the coal mine operations. We assume
no obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. For more information, please contact:
Company Contact: Laby Wu, Chief Financial Officer, Director of
Investor Relations Puda Coal, Inc. Phone: +86-10-6439-2405 Email:
Web: http://www.pudacoalinc.com/ Investor Relations Contact:
Crocker Coulson, President CCG Investor Relations Phone:
+1-646-213-1915 Email: Elaine Ketchmere, VP of Financial Writing
Phone: +1-310-954-1345 Email: Web: http://www.ccgirasia.com/
DATASOURCE: Puda Coal, Inc. CONTACT: Company Contact: Laby Wu,
Chief Financial Officer, Director of Investor Relations, Puda Coal,
Inc., +86-10-6439-2405, or ; Investor Relations Contact: Crocker
Coulson, President of CCG Investor Relations, +1-646-213-1915, or ;
Elaine Ketchmere, VP of Financial Writing, +1-310-954-1345, or Web
Site: http://www.pudacoalinc.com/
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