Breaking News: China Armco Metals, Inc. (OTCBB: CNAM) secures $13 million line of credit from the Bank of China for its scrap metal recycling project. This morning the company, a distributor of imported metal ore with plans to launch a new state of the art scrap metal recycling facility in China, issued a press release announcing that Armet Renewable Resources Co, Ltd. ("Armet"), the Company's wholly owned subsidiary, received $13 million 3 year Line of Credit from the Bank of China on August 11, 2009.

The terms of the credit line allow for approximately $2.9 Million to be used for working capital for the operation of its metal recycling operations with the balance to be used for fixed asset purchases associated with its recycling project.

Management anticipates it will commence operations at its 1 million ton recycling facility in the fourth quarter of 2009. It is anticipated that the metal recycled by Armet will be sold for use in the production of steel within China. China is currently the largest producer and consumer of steel in the world.

Kexuan Yao, Chairman and CEO of China Armco Metals, Inc., commented, "We are extremely pleased to have secured this $13 million line of credit for our metal recycling project. With this additional capital we plan to become one of the largest providers of scrap metal to the steel industry in China. We look forward to the planned commencement of operations in the fourth quarter and to the completion of our roadmap to reach two million metric tons of annual capacity in the future."

Last week the company reported record second quarter financial results for the quarter ended June 30, 2009. According to the release, financial highlights included:

Revenue for the second quarter ended June 30, 2009 increased by 71.2% to $22.5 million compared to revenue of $13.01 million in the second quarter ended June 30, 2008. The increase in revenue was mainly attributable to increased sales from its metals distribution business in China as demand for metal ore rose significantly. Net income for the second quarter of 2009 was $3.37 million compared to $1.85 million in the second quarter of 2008. This increase was attributable to an improving pricing environment in metal ore in China coupled with the positive effects of China's November 2008 economic stimulus package. On a diluted basis, earnings per share for the second quarter of 2009 were $0.33 on 10.1 million common shares outstanding compared to $0.24 in the second quarter of 2008 on 2.5 million fewer shares.