On November 29, Seattle, US-based L & L Energy Inc, a company operating coal and coke businesses in China, announced that it has entered into an agreement to provide a secured bridge loan to Bowie Resources, LLC (Bowie), which owns and operates the Bowie Mine, a Paonia, Colorado-based coal mine in production since 1997.
Under the terms of the agreement, L&L will provide initial funding to Bowie of up to $3 million in loans that will be used to fund Bowie's ongoing coal mining operations. L&L will fund the loan in tranches; the first $1 million was funded on November 23, 2010. The loans will receive interest of nine percent per annum and L&L will receive an option to acquire up to nine percent equity interest in Bowie at nominal costs, subject to certain conditions.
Bowie produces 4-5.5 million mt of high quality coal annually. Proven reserves are approximately 25 million mt with an additional 15 million mt potentially after permitting is completed.