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<-Back to WTN Archives China NetTV Holdings Inc.: Acquisition of Honglu a Company with Mining Properties in China
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World Tibet Network News

Published by the Canada Tibet Committee

Wednesday, July 9, 2003



3. China NetTV Holdings Inc.: Acquisition of Honglu a Company with Mining Properties in China


NEWS RELEASE TRANSMITTED BY CCNMatthews
JLY 9, 2003

VANCOUVER, BRITISH COLUMBIA--China NetTV Holdings Inc. ("the Company")
wishes to announce that it has signed an agreement to
acquire 100% shares of Honglu Investment Holdings, Inc., a Chinese mining
company ("Honglu"). The Company will issue 97,700,000 shares for all the
outstanding shares of Honglu. Honglu has 230 employees including 20
geologists.

Honglu's major asset is a 65% interest in Danlu Resource Development Co.
Ltd. ("Danlu"). The remaining 35% interest in Danlu is controlled by two
entities: The Geological Mines Office of the Tibet Autonomous Region (30%)
and the Beijing Headman Mining Evaluation Firm (5%). Through Danlu, a
subsidiary 65% owned by Honglu, Honglu controls a significant portfolio of
21 mineral properties with mining and/or prospecting permits and licenses in
Tibet and retains the rights to conduct exploration on and to develop these
properties. Honglu in addition, directly controls 3 other mineral properties
with the permits and/or licenses. These minerals properties represent a
broad array of products including: gold, silver, platinum, copper, iron,
lead, zinc, molybdenum, tin, tantalum, titanium and the rare earths, niobium
and osmium. Other minerals include corundum, borax, salt and high quality
green granite. Building materials also include gravel and marble.
Preliminary estimated value of this inventory according to Honglu is in
excess of US $2.0 billion.

Several of the 24 properties are at an advanced exploration stage or have
completed pre-feasibility studies. Some of the properties under immediate
review by the Company are as follows:

1. The Jiama mining claims in Mozhugongka County is comprised of 1.31 square
km. The property contains the Jiama polymetallic resource amounting to 61.4
million metric tons grading: copper 0.856%, lead 0.917%, zinc 0.213%, gold
0.35 g/t and silver 13.99 g/t. Danlu has acquired the mining license for the
property.

The resource contains higher grade sections amounting to 31.3 million metric
tons grading: copper 1.14% (358,000 mt or 789 million lbs), lead 3.41%
(564,000 mt or 1.2 billion lbs), molybdenum 0.074% (7,400 mt or 16.3 million
lbs), zinc 1.66% (131,000 mt or 289 million lbs), gold 0.32 g/t (295,000 oz)
and silver 9.94 g/t(9.2 million oz). At recent metal prices, the insitu
value of this resource is in the order of US$59/mt, representing a gross
value of US$657 million. The base metal content represents some 92% of the
estimated resource value. The copper content represents about 52% of the
gross value.

Included in the Jiama resource are 4.76 million metric tons grading: copper
1.19%, lead 4.12%, zinc 0.75%, gold 0.497 g/t and silver 45.3 g/t. The
insitu value of this resource is approximately US$55/mt containing a gross
value of US$260 million. The base metal content represents some 78% of the
estimated resource value.

2. The Gegongnong mining claims in Gongjue County covers a land area of 37.4
square km. The gold/copper porphyry resource on this property amounts to
549,000 metric tons grading 0.5% copper, 1 g/t to 6 g/t gold (containing 1.2
million oz gold) and 100 g/t - 150 g/t silver (containing 8.6 million oz
silver).

3. The Nianguchu mining claims in Naidang County covers an area of 1.12
square km. The property contains a gold and silver resource of 130,000 oz
and 1,000,000 oz respectively. The Company is investigating the precious
metal grade content and size of this deposit. Officials are optimistic that
this resource can be increased in size. There is an established
infrastructure in this area.

4. The Gaerqiong Copper and Gold Property in Geji County covers an area of 8
square km. The Government has represented two ore bodies on the property
containing 328,300 mt of copper and 51.6 mt (about 1.5 million oz) of gold.
The grade of copper and gold in the first ore body amounts to 2.04% and 3.84
g/t respectively. The second ore body reports a copper grade of 3.84% and
gold grade of 5.35 g/t. Much of the property remains unexplored.

The company plans to investigate these properties with a view to selectively
bring some of these resources into production.

Honglu is undertaking a drilling program in Gaerqiong Copper and Gold
Property, Geji County in Tibet. It plans to drill 5 holes with the main
objective of delineating a copper/gold deposit cu 300,000 tons of Cu and 10
tons of Au. Drilling results will be released as soon as they are available.

As of May 31, 2003, Honglu reported a cash position of US $5 million, net
working capital of US$ 666,000 and net income of US$ 750,000 which was
earned by a metal producing company 51% owned by Honglu. Total assets of
Honglu amounts to US $13 million but did not include the value for the
mining assets and mining licenses. The accounts are recorded in Renminbi
(Rmb) and converted into US$ at the rate of 8 Rmb per US$ based on China
GAAP.

Messrs Wang Zhi, Anthony Garson, Ronald Xie and Yang Jie have been appointed
to the Board of Directors of the Company as a result of the reverse
acquisition. Mr. Maurice Tsakok continues as a director. The Board has
elected Mr. Wang Zhi as Chairman and Mr. Anthony Garson, B.Sc. (Geology),
MBA and a former mining analyst as Vice-Chairman. Furthermore, the Board has
appointed Mr. Ronald Xie as President. Ernest Cheung and Marc Hung have
resigned as directors. A 7% finder's fee will be paid.

The Company intends to develop mineral deposits in Tibet and other areas of
the PRC recognizing that China's recent economic growth rate has placed an
increasing demand on the need for domestic production of metals. Currently,
China places fourth in the world wide production of copper but substantially
falls short of its domestic requirements. The development of partially
developed base and precious metal deposit in South Western China is seen as
an opportunity to aid the PRC in meeting its domestic requirements.

All amounts in US$ are converted from Chinese Renminbi (RMB) at the rate of
8 RMB per US$.

Any forward-looking statement in this press release is made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that actual results may differ substantially
from such forward-looking statements. Forward-looking tatements involve
risks and uncertainties including, but not limited to, economic and
political factors, product prices and changes in international and local
markets, as well as the inherent risks of the mining related business.

On Behalf of the Board of Directors
Ronald Xie, President and Director

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
China NetTV Holdings Inc.
Maurice Tsakok
(604) 689-4407
(604) 408-8515 (FAX)
Email: investors@chinanettvholdings.com
Website: www.chinanettvholdings.com


Articles in this Issue:
  1. Vajpayee kowtows to China
  2. First rail link to Tibet must be safe: China
  3. China NetTV Holdings Inc.: Acquisition of Honglu a Company with Mining Properties in China
  4. Mountain bikers off to the rodeo
  5. Galaxy of Asian Gods Is Sighted in Chicago



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