CD International Enterprises, Inc. (OTCQB:CDII) announced that its International Magnesium Group subsidiary has four new magnesium customer orders for the first quarter of 2013.
As quoted in the press release:
The orders totaling approximately $850,000 were made directly through IMG utilizing its previously disclosed trade agreement for up to $2 million in receivable and inventory based financing to expand its ongoing magnesium distribution business. Deliveries of the orders to European and Canadian based customers began in December 2012 and are expected to be completed in January 2013. Management believes the completion of these orders will serve as a successful test for the use of its financing arrangement and will seek to expand sales to these customers as well as other direct sales through IMG in the coming quarters.
CD International’s Chairman and CEO, James Wang, said:
We look forward to the successful completion of these initial orders using our new financing arrangement. We believe that the utilization of this financing coupled with the recent removal of the tax on magnesium exports from China will enable us to leverage sales through IMG and expand margins. We anticipate this will lead to significant growth in sales made through IMG in fiscal 2013 and beyond.