VANCOUVER, Oct. 27 /CNW/ - Yalian Steel Corporation (TSX-V: YL) ("Yalian" or the "Company") today announced that it has completed its previously announced private placement with Jiangsu Tongyu Steel Pipe Group Co., Ltd. ("Tongyu") (see news release dated April 20, 2009), whereby Tongyu agreed to subscribe for 5,700,000 common shares of Yalian at a price of US$1.00 (CAD$1.21) per share in a private placement. Yalian has received conditional approval for the transaction from the TSX Venture Exchange. Tongyu now holds approximately 5.8 percent of the Company's issued and outstanding shares on a fully diluted basis, further aligning its interest with the shareholders of the Company. Yalian will continue to leverage Tongyu's resources, experienced management, established sales relationships, and technical expertise, in order to establish and grow its steel pipe business.
"Tongyu is an industry leader in China. Their experience and guidance has proven invaluable in our early development as a Company. Now that we move to the next phase in our evolution and begin to introduce our quality products and manufacturing capabilities to the market, we are very pleased that they will continue as our valued partner," stated Edward (Bud) M. Siegel, Jr., Chairman and Acting Chief Executive Officer of Yalian.
About Yalian Steel Corporation
Yalian Steel Corporation is a British Columbia corporation focused on the production of high quality Longitudinally Submerged Arc Welded (LSAW) steel line pipe to service Asia's rapidly growing energy transportation infrastructure market. The Company's initial manufacturing facility is in the City of Yangzhou, in the Jiangsu province of China. 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-80 grade steel.
For further company information please access our website: www.yaliansteel.com.
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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.
SOURCE YALIAN STEEL CORPORATION
For further information: For further information: YALIAN STEEL CORPORATION, George Dorin, Acting Chief Financial Officer, Tel. No. (604) 696-6388