Terra Nostra Announces Stainless Steel Production Contracts Valued at $41 Million
April 24 2007 - 9:30AM
PR Newswire (US)
LOS ANGELES, April 24 /PRNewswire-FirstCall/ -- Terra Nostra
Resources Corporation (OTC:TNRO) (BULLETIN BOARD: TNRO) today
announced details of two sales contracts for Shandong Quanxin
Stainless Steel Co., Ltd. ("SQSS"), its stainless steel joint
venture operation in China. The first contract is with Qing Dao
Baemyung Metal Co. Ltd., a well respected company operating in the
Shandong province, which has contracted SQSS to produce 600 Metric
Tons ("MT") of 304 grade stainless steel billets per month, for an
annualized value of approximately US$30 million based on current
market prices. Qing Dao Baemyung further processes the billets into
various shaped bars, and exports the majority of its production to
Korea. SQSS has also been contracted by Zhejiang Yuyaohongda
Stainless Steel Co. Ltd. to produce 201 series billets, and then
further process the billets into stainless steel strips using
SQSS's recently commissioned strip rolling mill. Zhejiang
Yuyaohongda utilizes the SQSS produced strip for the stainless
steel pipe industry, exporting its product to Japan and Korea, as
well as some domestic sales in China. This contract is worth US$11
million annually at current market prices, with production of 600
MT monthly. Mr. Sun Liu James Po, Chief Executive Officer, stated
"This announcement represents an important milestone for Terra
Nostra. To be working with export oriented producers of this
caliber is indicative of SQSS's rapid acceptance as a world class
supplier. The annualized sales of US$41 million expected to be
realized with these contracts is a very positive indicator of the
type of revenue growth we can achieve for Terra Nostra as
production levels ramp up to meet demand." About Terra Nostra
Resources Corporation Terra Nostra is one of the leading copper
producers in China through its 51 percent interest in Shandong
Terra Nostra Jinpeng Metallurgical Co., Ltd., which has an existing
and under construction production capacity of 170,000 MT (metric
tons) of electrolytic copper, 20,000 MT of low-oxygen copper, and
value-added copper rod and wire facilities. Terra Nostra is also
emerging as a leading stainless steel producer in China through its
51 percent interest in Shandong Quanxin Stainless Steel Co., Ltd.,
a modern stainless steel production facility that commenced
operations in early 2006 with a now expanded 230,000 MT casting
mill, and a recently commissioned 150,000 MT rolling mill. The two
joint venture companies, which Terra Nostra recently entered into
an agreement to increase its ownership up to 90%, with total assets
exceeding US$200 million and over 1000 employees, are located in
the highly industrialized coastal province of Shandong, midway
between Beijing and Shanghai. More information on Terra Nostra can
be found at http://www.tnr-corp.com/. Forward Looking Statements
Except for the historical information contained herein, the matters
set forth in this press release, including statements with respect
to expectations concerning (i) projects underway or under
consideration, including production capacity and completion
schedules; (ii) business and future potential of Terra Nostra
Resources Corporation ("TNR"); (iii) estimates or implications of
future earnings, profits, EBIDTA, and the sensitivity of earnings
to metals prices; (iv) estimates of future metals production, sales
and profitability; (v) estimates of future cash flows, and the
sensitivity of cash flows to the other metals and ore costs as well
as, but not limited to, fluctuations in fuel prices, scrap prices,
and the availability of both, and statements related to these
matters or which use words such as "may," "might," "should,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," and the negative of these terms and
other comparable terminology are all forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Further risks,
uncertainties and other factors, which affect the forward- looking
statements included herein, and could cause actual results to
differ materially from future results expressed, projected or
implied by such forward-looking statements include, but are not
limited to, completion of TNR's capital contributions to the joint
venture companies, working capital financing, metals price
volatility, competition for projects, reserve acquisition costs,
currency fluctuations, international economic uncertainty,
sovereign risk, force majeure, changes in tax law or concession
law, project scheduling delays, labor disputes, increased
production costs and variances in ore grade, scrap grade or
recovery rates from those assumed in production plans, political
and operational risks in the countries in which TNR may operate and
governmental regulation and judicial outcomes, and other risks
detailed from time to time in TNR's filings with the Securities and
Exchange Commission, including its Quarterly Report on Form 10-Q
for the quarter ended November, 2006. Copies of each filing may be
obtained from TNR or the SEC. Furthermore, metals operation, by
their very nature, entail inherent cyclical, sectoral, and
commodity risk and could expose an investor to the entire loss of
all capital invested. TNR does not undertake any obligation to
publicly release any revisions to any forward-looking statements to
reflect events or circumstances after the date of this release or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws. DATASOURCE: Terra Nostra
Resources Corporation CONTACT: Bev Jedynak of Martin E. Janis &
Company, Inc., +1-312-943-1100 ext. 12, , for Terra Nostra
Resources Corporation Web site: http://www.tnr-corp.com/
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