$10 Million Hong Kong Credit Facility Renewed for 2009 Through IBC Strategic Limited

"$10 Million Hong Kong Credit Facility Renewed for 2009 Through IBC Strategic Limited | AboutHK.Com - more information about HK"

Cotton & Western Mining, Inc. (PINK SHEETS: CWRN) announced today that the company in Hong Kong line of credit was extended for 2009. The credit line was developed by IBC Strategic Limited, a Hong Kong company specializing in the procurement of financing for Chinese projects. The credit line was of standby letters of credit issued by a major Hong Kong buyer of iron ore products. Current FOB annual contract price of $ 45.00 per Dry Metric Ton (DMT) supplied, while an ad-hoc spot sales approaching $ 68.00 in the CIF China main ports. Cotton & Western are expected to increase output to 52,000 DMT per month, to be shipped from the Pacific port of Ensenada, Baja California, Mexico. The company has re-negotiation with the purchase of iron ore materials on annual contract pricing, packaged with financing incentives for the exclusivity of the company's Baja iron ore production. The buyer will be a $ 10,000,000.00 Standby Letter of Credit in favor of CWRN to enable the company to open iron ore in Baja California, Mexico. Cotton & Western Mining recently projected sales of over $ 126 million on the basis of an agreed base price of $ 45.00 FOB Mexico, per dry ton sold on a guaranteed 64.5% Fe (iron) with a bonus payment of $ 0 , 6976 per 1% Fe content above the minimum contract specification. The average Fe content as tested 2008 for Baja NO. 14 is 67% Fe content. Comments Please login to post comments or replies.