We are engaged in seeking business partnership opportunities with companies
that are in the field of exploration and extraction of precious and/or base
metals, primarily in China, which are in need of funding and improved management.
We seek to provide the necessary management expertise and assist in financing
efforts of these mining operations. In exchange, we seek to acquire metal ores
produced by these mines and process the ores in our ore milling plant and sell
the ore concentrates to metal refineries. Our only operating company is Zhen
Ding Mining Co. Ltd., which engages in the processing of metal ore and the selling
of ore concentrates of gold, silver, lead, zinc and copper at purity levels
ranging from 65% to 80%. Zhen Ding Mining Co. Ltd. purchases metal ore in rock
form from its joint venture partner Jing Xian Xinzhou Gold Co., Ltd, which has
rights to explore and mine ore from a property located in the southwestern part
of Anhui province in China.
Our principal office is located at 353 St. Nicolas, Suite 205, Montreal, Quebec
H2Y 2P1. Our operational offices are located at: Zhen Ding Mining Co. Ltd.,
Wuxi County, Town of Langqiao, Jing Xian, Anhui Province, China, Tel: 86-6270-9018.
We were incorporated in September 1996 as Robotech Inc., and began our business
in the development and marketing of specialized technological equipment. At
that time we estimated that we would require approximately $6,000,000 to realize
our plans. Through the year of 2003, we had not reached our financing goals
and therefore abandoned that particular business plan. Since that time, we have
been seeking suitable candidates for acquisition.
From the early 2000s until approximately 2013, there was an overall worldwide
recovery in the price and markets for precious metals, minerals and industrial
commodities. Such interest was fueled to a large degree, by the economic awakening
of the two most populous nations, China and India and further bolstered by a
sharp decline in the US dollar. These circumstances resulted in significant
increases in the market prices of gold, silver and copper. Thus, in early 2010,
the business direction of our company was changed to seek to profit from this
commodities revival, and we began to focus our acquisition search in that industry,
particularly on companies engaged in the mining of gold, silver and copper.
In January 2012, our board of directors, with authorization from the majority
of the shareholders of our company, made an offer to the shareholders of Zhen
Ding Resources Inc., a Nevada corporation (“Zhen Ding NV”), to acquire,
at the very least, the majority of their common shares, and, if available, up
to 100% ownership.
Zhen Ding NV through its wholly owned subsidiary, Z&W Zhen Ding Corporation,
a California corporation (“Zhen Ding CA”), has been engaged in a
joint venture with Jing Xian Xinzhou Gold Co., Ltd. (“Xinzhou Gold”),
a company organized under the laws of the People’s Republic of China (“PRC”).
The joint venture company, Zhen Ding Mining Co. Ltd. (“Zhen Ding JV”)
is 70% held by Zhen Ding NV through Zhen Ding CA. It is a common practice in
China to append the name of the town or city where an enterprise is located
to its legally incorporated name. Thus many documents referencing Zhen Ding
JV may refer to it as Jing Xian Zhen Ding Mining Co. Ltd. Zhen Ding JV engages
in the processing of metal ore and the selling of ore concentrates of gold,
silver, lead, zinc and copper at purity levels ranging from 65% to 80%. Zhen
Ding JV purchases metal ore in rock form from Xinzhou Gold.
On March 8, 2012, we changed our name from Robotech, Inc. to Zhen Ding Resources
Inc., in anticipation of the acquisition of Zhen Ding NV. Our trading symbol,
RBTK, however remained unchanged.
During 2012, a total of 50,746,358 shares of the issued and outstanding common
stock of Zhen Ding NV were tendered to our company. On August 13, 2013, an additional
13,100,000 shares were tendered to us. Thus, as of August 13, 2013 the shareholders
of Zhen Ding NV had tendered 100% of the issued and outstanding shares of common
stock, representing 100% of the issued and outstanding equity of Zhen Ding NV
to us.
On October 23, 2013, we issued 122,440 shares of our common stock, on a one-for-one
basis, to the tendering shareholders of Zhen Ding NV making Zhen Ding NV a wholly
owned subsidiary of our company.
On October 28, 2013, we dissolved Zhen Ding NV by merging it with and into
Zhen Ding DE. As a result, Zhen Ding CA became a wholly-owned subsidiary of
Zhen Ding DE. Zhen Ding CA continues to exist as an intermediate holding company
with no operations of its own, but which in turn owns our 70% interest in Zhen
Ding JV.
Presently, we are conducting our operations exclusively through Zhen Ding JV,
our joint venture company. However, we continue to look for other attractive
potential acquisition targets in the mining industry.
Our joint venture, Zhen Ding JV, is equipped to process ore mined by our joint
venture partner Xinzhou Gold. Zhen Ding JV purchases the ore in rock form from
Xinzhou Gold and processes the ore into our final product, which is a gold,
silver, lead, zinc and copper ore concentrate. We estimate that our processed
product is 65% to 80% pure. The product is then sold to refineries which further
purify and separate the concentrate. Zhen Ding JV also arranges all exploration,
mining process and operations, and financial and administrative support for
Xinzhou Gold’s mine, known as the Wuxi Gold Mine.
We purchase all of our raw material from Xinzhou Gold for our ore processing
operation and rely solely on Xinzhou Gold for our supply of ores. The veins
most recently excavated by Xinzhou Gold in the permitted areas of our mines
are very low grade and, as such, the production is minimal. The higher yielding
and therefore more profitable veins run outside Xinzhou Gold’s permitted
mining area boundaries under its current license. Xinzhou Gold applied for an
extension of the permitted mining area, however, the application was rejected
by the government in December 2016 due to Xinzhou Gold’s insufficient
working capital. Xinzhou Gold intends to reapply for an extension of the permitted
mining area when it is able to demonstrate sufficient working capital to drill
the extended area. However, if sufficient working capital is unavailable, or
should the application be denied on other grounds, we would not be able to secure
another source with higher grade ores for our processing plant, which would
severely limit our ability to execute our plan of operation and our potential
profitability.
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