Qiao Xing Universal Resources, Inc Posts Presentation Regarding Newly Acquired Aolunhua Copper-molybdenum Mine on Corporate Website
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HUIZHOU, China, Jan. 5, 2011 - Qiao Xing Universal Resources, Inc. (Nasdaq: XING, the "Company" or "XING"), one of the leading players in molybdenum mining business as well as a company with meaningful size in the resources industry, today announced that it posted a PowerPoint ("PPT") presentation on its corporate website relating to its newly acquired copper-molybdenum mine in Ar Horqin Banner, Chifeng City, in the Inner Mongolia Autonomous Region. Investors can visit www.sec.gov/ to see the PPT filed on Form 6-K or click the link below to view the PPT presentation:
http://cosun-xing.com/contact/Acm_01.asp
Updated Corporate Website
The Company plans to launch a new, updated corporate website in January to reflect recent major developments in the resource industry.
Upcoming Site Visit
"We also invite and welcome investors to participate in the upcoming visit this Spring to our sites in Chifeng, where our mining businesses are located. During the visit, investors can communicate directly with the mines' management teams to better understand their operations," commented Mr. Ruilin Wu, Chairman and Chief Executive Officer of XING.
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc is one of the leading players in the molybdenum mining business, as well as a company with meaningful size in the resources industry. The Company focuses on rare metals and several strategically important base metals, including molybdenum, copper, lead and zinc.
The Company currently owns a 100% equity interest in Balinzuo Banner Xinyuan Mining Co., Ltd. ("Xinyuan") and a 34.53% equity interest in Chifeng Aolunhua Mining Co., Ltd ("Aolunhua"), as well as the right to receive 100% of the expected residual returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining").
Xinyuan owns a mining license for a lead-zinc-copper mine that covers 3.3233 square kilometres in Wulandaba Suma, Balinzuo Banner, in the Inner Mongolia Autonomous Region, China (the "Xinyuan Mine"). The Xinyuan Mine, which started operation in March 2010, expects to increase its processing capacity to as much as 2,000 tons of ore per day by mid-2011 and expects to generate revenue of RMB 430 million, operating profit (EBITDA) of RMB 180 million and net cash flow of over RMB 100 million in 2012.
Aolunhua is one of the leading molybdenum mining companies in China. It owns an open-pit copper-molybdenum mine (the "Aolunhua Mine") covering 14.38 square kilometers in Ar Horqin Banner, in Chifeng city in the Inner Mongolia Autonomous Region. The Aolunhua Mine has reserves of 372.9 million tons of ore and 159,293 tons of molybdenum metal at a grade of approximately 0.0663%, as well as such byproducts as 26,000 tons of copper and 100 tons of silver metal. Its commercial operations began in September 2009 and reached a daily processing capacity of 15,000 tons of ore by the end of 2009. In 2010, the Mine processed a total of 4.49 million tons of ore and produced 4,496 tons of 53.43% molybdenum concentrates (which contained 1,968 tons of molybdenum metal), and 2,861 tons of copper concentrates (which contained 515 tons of copper metal and 2.8 tons of silver metal).
Haozhou Mining is a large copper-molybdenum poly-metallic mining company in Inner Mongolia, China. XING's Haozhou Molybdenum Mine business started operation in July 2009 and generated net income of RMB64.2 million (US$9.4 million) in the second half of 2009.
XING, one of the first Chinese private companies to be listed on NASDAQ in 1999 and was previously one of the leading players in the telecommunication terminal products business in China. In 2007, the Company made the strategic decision to diversify into the resources industry. In April 2009, the Company acquired a 100% equity interest in China Luxuriance Jade Company, Ltd. ("CLJC") which owns the right to receive 100% of the expected residual returns from Chifeng Haozhou Mining Co., Ltd. In November 2009, XING divested its fixed-line and low-end mobile phone businesses and changed its corporate name to Qiao Xing Universal Resources, Inc., effective January 28, 2010. The Company reported a net profit of RMB 64.2 million (US$9.4 million) from its molybdenum-mining business for the second half of fiscal year 2009. Based on the initial success of the Company's molybdenum business as well as an extensive study of China's macro economic trends, XING is further consolidating its strategy to become a pure resources company with meaningful scale. .On September 8, 2010, XING announced the proposed offer to acquire all the outstanding shares of its 61%-owned subsidiary Qiao Xing Mobile Communication Co., Ltd. (NYSE: QXM, or "QXMC") that it does not currently own, by way of a Scheme of Arrangement (the "Proposed Offer") under British Virgin Islands law, with the intention to spin off QXMC's mobile phone assets or business and redeploy its assets into the resources industry. This proposed acquisition is ongoing and its completion is subject to several conditions, including approval from a majority of the minority shareholders of QXMC. On December 21, 2010 and December 31, 2010, XING acquired the 100% equity interest in Balinzuo Banner Xinyuan Mining Co., Ltd. ("Xinyuan") and 34.53% equity interest in Chifeng Aolunhua Mining Co., Ltd (Aolunhua) respectively.
The Company is actively evaluating additional acquisition opportunities in the resources area to enhance its foothold in the industry. Meanwhile it is making efforts to divest its existing mobile phone business through the privatization of its QXMC subsidiary or via other alternatives to become a pure-play resources company.
SOURCE Qiao Xing Universal Resources, Inc.
CONTACT:
At Qiao Xing Universal Resources,
Rick Xiao,
Vice President,
+86-752-282-0268,
or
rick@qiaoxing.com;
or
USA IR AGENCY,
CCG Investor Relations Inc.,
Mr. Ed Job, CFA,
+86-1381-699-7314 (Shanghai),
or
ed.job@ccgir.com
Web Site: www.cosun-xing.com
