Press release from Marketwire
Yalian Steel Secures RMB20 Million Lines of Credit From Bank of Najing
Thursday, April 26, 2012
Yalian Steel Secures RMB20 Million Lines of Credit From Bank of Najing17:19 EDT Thursday, April 26, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2012) - Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces that it has secured RMB20 million (CAD $3.1 million) line of credit from the Bank of Nanjing. The credit facility is available for loan drawdowns which will be used to fund the working capital requirements of Yangzhou Yalian Steel Pipe Co., Ltd. ("Yangzhou Yalian"), a wholly-owned subsidiary of Yalian in China.On March 31, 2012, the Company obtained an RMB 20 million (CAD $3.1 million) line of credit from the Bank of Nanjing. The credit facility is valid for six months from March 31, 2012 to October 30, 2012. A drawdown against the line of credit was made on April 13, 2012 for the issuance of RMB15,000,000 (CAD $2.3 million) of bankers' acceptance notes to a supplier in China. The bankers' acceptance notes have a term of six months maturing on October 13, 2012. An interest rate of 0.05% per day will be charged on the amounts to be advanced by the Bank of Nanjing when the bankers' acceptance notes mature. In connection with the issuance of the banker's acceptance notes, RMB7,500,000 (CAD $1.2 million) cash deposits have been placed with the Bank of Nanjing as collateral. About Yalian Steel CorporationYalian Steel Corporation is a British Columbia corporation focused on the production of high quality Longitudinally Submerged Arc Welded (LSAW) steel pipe to service Asia's rapidly growing energy transportation infrastructure market. The Company has recently completed construction of its initial manufacturing facility in city of Yangzhou, in the Jiangsu province of China. The first production line has a capacity of up to 200,000 metric tons per year. The Yangzhou Yalian plant utilizes the JCOE (J-ing, C-ing, O-ing, Expanding) process, an advanced method of LSAW pipe production that involves the bending and shaping of X-70 and higher grade steel.This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Yalian's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars unless noted otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Helen LuYalian Steel CorporationChief Financial Officer(604) 696-6388www.yaliansteel.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.