Press Release Source: Songzai International Holding Group, Inc.
SGZI to Acquire 90% Stake of Two Chinese Coal Mines Companies
Monday January 7, 9:00 am ET
WALNUT, CA and HARBIN, CHINA--(MARKET WIRE)--Jan 7, 2008 -- Songzai International Holding Group, Inc. (OTC BB:SGZI.OB - News), a coal producer and coal reseller based in China, announces today the signing of a definitive agreement on December 31, 2007, to acquire a 90% equity stake in each of two Chinese coal mining companies: Heilongjiang Xing An Group Hong Yuan Coal Mining Co., Ltd. ("Hong Yuan") and Heilongjiang Xing An Group Sheng Yu Ming Co., Ltd. ("Sheng Yu"). The current owners of Hong Yuan and Sheng Yu will hold the remaining 10% equity of each company in trust for Songzai. The acquisition, which is expected to close at the end of January 2008, is intended to increase both Songzai's annual production capability and coal reserve. Songzai will pay US$30 million and issue 80 million shares of its common stock to the current shareholders of Hong Yuan and Sheng Yu for the acquisition. The 60% of the cash portion of the acquisition cost will be payable 6 months after the transaction closes and the balance on the first anniversary of the closing, provided that the entire balance will be due immediately if Songzai receives financing in excess of US$30,000,000.
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"We estimate that the acquisition of both Hong Yuan and Sheng Yu will push our total coal reserve above 23 million tons, which is crucial for the future growth of the company and will give us a strong presence in China's coal market," commented Hongjun Li, President of Songzai.
More information about the proposed transaction and a copy of the acquisition agreement may be found in Songzai's Current Report on Form 8-K to be filed with the SEC on January 7, 2008.
About Songzai International Holding Group Inc.
Songzai is a coal producer and coal reseller based in China. The company distributes coal to both industrial customers, such as power plants and cement factories, and to individual consumers for home heating.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as ''will,'' ''expects,'' ''believes,'' ''anticipates,'' ''intends,'' ''estimates'' and similar statements. Such statements reflect the current view of the Songzai with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to the coal mine industry, operations and results of operations of Songzai. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. This forward-looking information should be considered only in connection with "Risk Factors" detailed in Songzai's filings with the Securities and Exchange Commission. Songzai assumes no obligations to update any forward-looking statements or information set forth in this press release.
Contact:
For more information, please contact:
Will Lu
IR Officer
Tel: (909) 468-2840
Email: Email Contact
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Source: Songzai International Holding Group, Inc.
