SAN MATEO, CA -- (Marketwire) -- 04/27/10 -- China Armco Metals, Inc. (NYSE Amex: CNAM), a distributor of imported metal ore and metal recycler with a new state of the art scrap metal recycling facility in China, today announced that Armet Renewable Resourced Co., Ltd. the Company's wholly owned subsidiary, has entered into contracts with several domestic suppliers to secure an ongoing supply of scrap metal of up to 37,000 tons per month for the remainder of 2010.
The scrap metal will be processed at China Armco's new facility in Lianyungang, China which entered into production in the second quarter of 2010. As previously announced, China Armco secured a contract to deliver approximately 23,000 metric tons of processed scrap metal per month for a period of 10 months to a major steel producer in 2010 valued at approximately $100 million based on the spot price of scrap metal in March of 2010. These new sourcing contracts will provide China Armco with the raw materials to meet its commitment to this major steel producer as well as provide additional inventory to support its sales efforts to other customers.
Commenting on the supply contracts, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are very pleased to have secured a sizable and consistent scrap metal supply. This is an important step forward as we ramp up production at our newly constructed metal recycling facility in Lianyungang. The infusion of capital from our recent equity raise coupled with the exercise of options and warrants, has provided us with the added financial flexibility to secure favorable long term supply contracts to accelerate our growth plans for 2010 and beyond. We now have the ability to look to take advantage of numerous opportunities before us and intend to work diligently to aggressively expand our operations for the benefit of our shareholders."
About China Armco Metals, Inc.
China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 1-million ton per year shredder and recycler of metals located on 32 acres of land acquired by China Armco. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, and the Philippines. China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the recycled metal market as 70 million metric tons. For more information about China Armco, please visit http://www.armcometals.com
Safe Harbor Statement
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the ability of our suppliers to fulfill their delivery obligations and market prices and revenues related to the sale of processed scrap metal. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:
We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by our partner's ability to complete its obligations to source various minerals and ores within acceptable specifications, demand and fluctuations in the prices of those minerals and ores, our ability to resell any sourced minerals and ores at current market prices and on favorable terms, our ability to finance the purchase price of any minerals and ores, and the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2009.
Contact:
China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com
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