SOURCE: Cotton & Western Mining, Inc.

June 27, 2008 09:45 ET

Cotton & Western Mining, Inc. -- CWRM Lines up $10,000,000.00 HK Banking Facility Through IBC Strategic Limited Hong Kong

HOUSTON, TX--(Marketwire - June 27, 2008) - Cotton & Western Mining, Inc. (PINKSHEETS: CWRM) -- Robert L. Cotton, President of Cotton & Western Mining, Inc. revealed today that the company has a Hong Kong Bank facility against Standby Letters of Credit to be issued by a substantial Hong Kong buyer of raw crude iron ore products. The credit facility was arranged by IBC Strategic Limited a Hong Kong company specializing in finance procurement for Chinese projects. Current FOB annual contract pricing is now $80.00 per each Dry Metric Ton (DMT) shipped while one off Spot Sales are nearing $125.00 FOB and over $200.00 CIF main China ports. The company will open production at 70,000 DMT per month, FOB, the Pacific Ocean Port of Ensenada, Baja California, Mexico.

The company is near completion of the long and exhaustive negotiations involving both the purchase of materials on annual contract pricing, packaged with financing incentives for the exclusivity of the company's Baja iron ore production. The Buyer will issue a $10,000,000.00 Standby Letter of Credit in favor of CWRM which would allow the company to open iron ore production in Baja California, Mexico.

It is hopeful that the final contract terms and conditions will be agreed upon within the next few weeks.

Related Business

CWRM begins preparations for environmental permitting for Baja Pacific N0. 4 iron mineral deposit. The company is now doing site evaluations on Baja Pacific N0.'s 12, 13, 14 and 15. These are small deposits of compact (ready ship) iron magma deposits that require little or no mining infrastructure, the combined iron reserves of these deposits is approximately 2.4 million metric tons. The company intends to begin operations with the surface heavy outcrops in those locations first before developing the Flagship iron deposit Baja Pacific N0. 8 which will require specially designed excavation equipment mounted on parallel rails with the narrow but deep magnetite seams between. An overhead crane fitted with a 300 meter long load line, 50 metric ton lift capacity winch and 11 cubic meter clam bucket will be used to excavate the blasted iron minerals from the trench. Baja Pacific N0. 8, seam number 1 is approximately 2.7 kilometers long and runs across near flat farm lands. The excavation techniques to be applied at the site is believed to be the first such undertaking for open pit iron ore mining.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Contact Information

  • Contact:
    Cotton & Western Mining, Inc.
    363 North Sam Houston Parkway East
    Suite 1100
    Houston, Texas 77060 USA