| HONGLU
INVESTMENT HOLDINGS INC.
Honglu Investment Holdings,
Inc. (¡°Honglu¡±) is a Chinese company incorporated
under the laws of China. The Company has its principal
business office in Lasa, Tibet, China.
Honglu is in the natural resources development business
in China, focusing exclusively on the investigation,
exploration, development and acquisition of precious
metal and industrial metal mines in Western China.
It has acquired the prospecting and mining rights
for a total 24 proven mines and deposits in Tibet.
Please refer to the attached property list for details.
Currently, the Company is negotiating with various
central and provincial authorities for the granting
of licenses in respect of several proven deposits
of precious metals, rare earth and industrial minerals
in Central and Southern China. Honglu has over 20
geologists in Tibet and Beijing.
The Company conducts its business operations directly
and also through Danlu Resources Development Company
(¡°Danlu¡±), a joint venture established by Honglu,
Geological Mines Office of the Tibet Autonomous Region,
or Tibet (30%) and Beijing Headman Investment Consulting
Co,LTD., Headman (5%). At present, Honglu has 65%
of the equity in Danlu.
Danlu, the mining subsidiary of Honglu, is operated
and managed by Honglu pursuant to a unanimous shareholder
agreement. Apart from 3 mining and exploration concessions
granted to Honglu, Danlu¡¯s prospecting and mining
concessions includes 21 deposits of precious metals
and industrial minerals, including gold, silver, copper,
iron, stibium, magnesium, molybdenum, plumbum, zinc,
platinum, tantalum, osmium, titanium, niobium, salt,
corundum, borax, bowlder, marble, etc., more then
ten nonferrous metal, rare earths , high quality precious
stone and building materials. The appraisal value
of the deposits owned by Honglu exceeds 16 billion
RMB by the end of 2002.
Honglu has been granted government concessions and
prospecting and mining rights and licenses for some
of the most significant pool of precious metal and
industrial minerals deposits and mines in China¡¯s
western provinces. The Company is in the process of
bringing some of these properties to the market through
international acquisition, joint venture and diversified
capital operation.
Tibet Danlu Resource
Development Co., Ltd.
A subsidiary of Honglu
Investment Holdings Co., Ltd.
Tibet Danlu Resource Development Co. Ltd. (the Company)
is a mineral resources development company which was
incorporated under the laws of the PRC on April 4,
2002. The business address of the Company is at 13F,
Foreign Trade Building, 75, Jinzhu Xilu, Lhasa, Tibet,
China. The Company is owned by the following parties:
Honglu (65%), Division 6 (30%) and Headman (5%).
The Company is operated and managed by Honglu, pursuant
to a unanamous shareholder agreement amongst Honglu,
Division 6 and Headman. It owns the exploration and
mining right to 24 deposits of precious metals and
industrial minerals, including gold, silver, copper,
iron, stibium, magnesium, molybdenum, plumbum, zinc,
platinum, tantalum, osmium, titanium, niobium, salt,
corundum, borax, bowlder, marble, etc., more then
ten nonferrous metal, rare-earth metal, high quality
precious stone and building materials. The appraisal
value of the deposits owned by the Company exceeds
16 billion RMB. By the end of 2002, the intangible
equity has been reached RMB235 million, and increased
at the rate of 15% annually.
As a part of the management strategy, the Company
has become the most significant owner and operator
in China¡¯s western provinces with the largest pool
of assets in the deposits of precious metals and industrial
minerals. It has developed integrated exploration,
mining, processing and transportation facilities through
acquisition, joint venture and diversified capital
operation. |
