Item 1.01 Entry into a Material Definitive Agreement.
On April 14, 2011, L & L Energy, Inc., a Nevada corporation (“L&L” or the “Company”), entered into two contracts via its subsidiaries to supply coal to Kunming Iron & Steel Group Co., Ltd. of China and its subsidiaries (“KISG”).
Under the first contract, L&L’s subsidiary KMC (Kunming BiaoYu Industrial Furnace Co., Ltd.), a Chinese company, will provide 300,000 tons of coal to KISG until December 20, 2011. Under the second contract, L&L’s subsidiary in the U.S. (Energy Pacific Inc., a Nevada corporation) has two years to provide 400,000 tons/year of coal sourced from North America to KISG. There will be no penalty against L&L if coal (including valid international delivery mechanism) is not available in the two-year period, in which case the parties agree to renegotiate the contract.
Forward Looking Statements
Information set forth in this Form 8-K report that is not purely historical are “forward looking statements” within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward looking statements include, without limitation, statements regarding the Company’s business strategy, market/revenue/profitability prediction, risks/uncertainties, and future performance. All such forward looking statements are based upon information available to the Company as of the date hereof, and the Company assumes no obligation to update any such statement. Actual results could differ materially from the Company’s current expectations. Factors that could contribute to such differences include, without limitation, risks related to volatility in coal demand, China’s political/economic environment, the Company’s ability to acquire coal-mine related assets and corresponding financing, and other factors discussed in the Company’s reports filed by the Company from time to time with the Securities and Exchange Commission.
ITEM 8.01. Other Events.
On April 18, 2011, L&L issued a press release regarding the entering of the coal sales contracts described in Item 1.01 of this report. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit Number | Description |
99.1 | Press Release titled “L & L Energy Announces Two Contracts to Supply Coal to Kunming Steel.” Released on April 18, 2011. |