LAS VEGAS and BEIJING, Dec. 5 /Xinhua-PRNewswire-FirstCall/ -- China Holdings, Inc. (OTC Bulletin Board: CHHL), a global diversified assets holdings company, and its subsidiaries engage in multiple China-focused business activities including energy, renewable energy, resources, finance, real estate, utilities and pharmaceuticals, announced today the Company has consolidated its minerals resources development through a successful ACQUISITION TRANSACTION AGREEMENT with Tong Ren Kai Yu Minerals Co. Ltd., TongRen BaHuangZhen NeShao Pb-Zn-P Minerals Plants and GuiZhou FuRuiDe Minerals Co. Ltd (together call "Tong Ren Kai Yu Minerals") with Exclusive First Refusal Rights ((3) years) to acquire 100% of Tong Ren Kai Yu Minerals with three(3) mineral properties/mines and two (2) mining permits for producing rare metals Vanadium (V2O5), Molybdenum (Mo), Uranium (U) in Gui Zhou Province, the People’s Republic of China and three (3) exploration licenses. All the mining permits and exploration licenses are approved by the Provincial Land & Resource Minister of the People’s Republic of China.
The preliminary mining engineering reports estimate that the Vanadium (V2O5), Molybdenum (Mo), Uranium (U) reserves contained in the three mineral properties/mines covered by the three mining exploration licenses and two mining permits are worth up to RMB65 billion (approximately US$8.67 billion)at current prices. China Holdings plans to conduct more detailed mining feasibilities study in the near future for the pending results of minerals reserves and intends to explore acquiring additional mining permits and exploration licenses in a larger area. Tong Ren Kai Yu Minerals confirm that there are no debt, no liabilities. The Company has agreed to pay RMB300 million (approximately US$40 million) for the 100% of Tong Ren Kai Yu Minerals with three mineral properties/mines and two mining permits for producing rare metals (Vanadium (V2O5), Molybdenum (Mo), Uranium (U), etc.) and with three exploration licenses．The RMB300 million payments to Tong Ren Kai Yu Minerals /Shareholders is scheduled for: 1). RMB200 million in common shares of China Holdings, Inc. (NASD OTCBB: CHHL) of which RMB50 million (approximately US$6.67 million) will be valued at US$0.05 per share, and RMB150 million (approximately US$20 million) at the average closing price for the common shares of China Holdings, Inc. (NASD OTCBB: CHHL): 5 days before the closing & 5 days after the closing day; 2). The balance of RMB100 million (approximately US$13.33 million) will be paid in cash at the closing. The Company is establishing its minerals subsidiaries. And the transaction will be completed through the Company’s subsidiary in China and/or Off-Shore upon full satisfaction of due diligence and mining feasibilities studies as well as government regulatory approval.
Vanadium is used in metal alloys with iron to produce high strength steel, which have a wide range of uses including structural applications such reinforcing bars in building and construction, gas and oil pipelines, tool steel, the manufacture of axles and crankshafts for the automobile industry, and jet engines for the aircraft industry. Non-steel uses include welding, and alloys used in nuclear engineering and superconductors. Vanadium chemicals and catalysts are used in the manufacture of sulphuric acid, and desulphurisation of sour gas and oil. Vanadium is sold in a number of forms; either as vanadium pentoxide (V2O5), or less commonly as vanadium trioxide (V2O3), or as an alloy of iron and vanadium commonly as FeV80 (80% contained vanadium) or FeV50. V2O5 is typically quoted in USD per pound, whilst FeV is quoted in USD per kilogram. Mine production accounts for only approximately 20% of annual World production of vanadium, the majority of World production (80%) is a by-product from reprocessing of steel slags, oil refining, and the uranium enrichment industry. Vanadium prices have fluctuated over the last decade with sharp price rises and declines during short time periods. Prices have ranged from US$1.30 per lb V2O5 to more than US$20 per lb. The average prices have been in the range US$3 -- $4 per lb.
China Holdings plans to establish/invest a mining plant to produce Vanadium at approximately volume 1000 -- 5000 Ton/year after the transaction completion to expand and consolidate its minerals & metals operations in the near future. Currently, Tong Ren Kai Yu Minerals has the development rights for a Vanadium Production Plant’s approved by the Provincial Land & Resource Minister of the People’s Republic of China.
The Enhanced Development through the Company’s strategic acquisitions of 100% "Tong Ren Kai Yu Minerals" to consolidate the Vanadium (V2O5), Molybdenum (Mo), Uranium (U) ‘s mines, and exploration grounds in the mines area is as the Chinese government encouraging the consolidation within a mining district of small mining operations and companies into larger, well-organized operations in order to improve safety and environmental practices and for better use of resources.
The Company is aiming to establish, expand, and diversify in the mining resource industry in China, and/or worldwide, in its rare metals resource and properties with mining licenses in production base in its own right, and through strong joint venture partners in the People’s Republic of China. The Company is establishing high-margin rare metals (Vanadium (V2O5), Molybdenum (Mo), Uranium (U)) production, increasing mineral resource inventory and mining life aiming at exploration, production and the development of multi-commodity project pipe lines. Furthermore, the Company’s mining projects and prospects will be based on rigorous economic evaluation, be subsequently advanced, and joint-ventured.
The Company’s objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, or/and worldwide, or/and which derive a significant part of their revenue from China, or/and worldwide.
About China Holdings, Inc. (NASD OTCBB: CHHL)
China Holdings, Inc. (NASD OTCBB: CHHL) is a development stage company with the goal of becoming a diversified global assets holding company. The Company and its subsidiaries engage in multiple China-focused business activities including energy, renewable energy, resources, finance, real estate, utilities and pharmaceuticals. Its objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, or/and worldwide, or/and which derive a significant part of their revenue from China, or/and worldwide. The Company has two controlled subsidiaries: (i) China Power, Inc., and (ii) China Health Holdings, Inc. For the Company’s profile, please feel free to via website: http://www.chinaholding.net .
About China Power, Inc.
China Power Inc., a controlled subsidiary of China Holdings, Inc, is a development stage company with the goal of becoming a global leading energy & renewable energy holding corporation, that focuses on the Merger & Acquisition, investment, Research & Development, construction and operation of energy, and renewable energy, and environment protection projects in China and worldwide.
For worldwide investor and media inquiries, please contact:
China Holdings, Inc. (NASD OTCBB: CHHL)
Las Vegas and Beijing
James H. Simpson, Senior Vice President /Investors Relations
And Julianna Lu, Chief Executive Officer
Tel: +86-10-6586-4770 (China)
Fax: +86-10-6586-4790
Mobile: +86-1370-133-1287 (China)
Email: lujulianna@yahoo.com or info@chinaholding.net
Web: http://www.chinaholding.net
Safe Harbor Statement: To the extent that statements in the press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company’s development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward looking, all forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements, which may accompany the forward-looking statements, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company’s industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company’s stock; and the risk factors set forth from time to time in the Company’s SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. In addition, the company disclaims any obligation to update or correct any forward-looking statements in all of the Company’s press releases to reflect events or circumstances after the date hereof.
