MONTREAL, April 27, 2006 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK.F) announced today that it has recently completed a private placement of convertible debt financing through a European investment group in the amount of EUR 1 million (approximately US$1.22 million). The debentures are convertible into restricted common shares of the Company at a fixed conversion price per share of EUR 0.80 (approximately US$0.98).
The bulk of the new funds will go to propel plans already underway in China that are aimed at purchasing various small to mid-size producing gold mines.
In China, East Delta is a 70% owner of a 85 square kilometer highly prospective exploration property, has signed an agreement to acquire an existing producing gold mine with indicated resources of 300,000 ounces of gold, and has several other projects involving producing mines that are currently in various stages of due diligence, with signed letters of intent to acquire them.
Victor Sun, President and CEO of East Delta, stated, "We are moving simultaneously along several tracks. Aside from exploring and developing our flagship property at Bake, we intend to grow aggressively through the acquisition of existing mines. These acquired mines will benefit from our expertise and our ability to supply them with the necessary funds to modernize and expand. The recent additional funding now gives us the ability to accelerate, in both the exploration and acquisition aspects, of our growth plans."
The Company
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec, whose business objective is to profit from the recent strong worldwide revival of interest in precious metals. EDLT's primary activity is in mine development and production of gold. EDLT also participates in other mineral exploration and mining, specifically, silver, nickel, zinc and lead. The geographic focus of the Company currently is mostly China.
With over US$2.0 million in the bank, majority interest in several highly prospective properties, experienced personnel, and an extensive network of contacts in China, the Company believes it has made a solid start on implementing its business plans and objectives.
Safe Harbor
Certain statements contained herein are ''forward-looking'' statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.