MONTREAL, Nov. 30, 2006 (PRIME NEWSWIRE) -- East Delta Resources Corp. (OTCBB:EDLT) (Frankfurt:EJK) announced today that it has given Sino-Canadian Metals Inc., a 63% owned subsidiary of EDLT, authorization to proceed with the acquisition of the nickel-copper exploration property controlled by Sino Canadian, under a letter of intent with Qinghai Hua Long Ding Shun Minerals Ltd of Qinghai Province, China. The letter of intent contains the framework to form a joint venture to develop the nickel-copper property, covering an area of approximately 17 square kilometers. The proposed joint venture agreement calls for Sino-Canadian Metals to initially deposit US$300,000 into the project in order to earn 80% equity ownership, with further exploration and development expenditure of up to US$4.7 million within two years, subject to obtaining continuing positive results. The required funding for the deposit has already been completed and is available for deposit into the proposed JV upon the signing of final agreements with Qinghai Hua Long.
Victor Sun, CEO of Sino-Canadian commented, "This an excellent opportunity for realizing a significant find. With nickel prices rising from about $6 per pound to over $15 in the past year, we believe that this acquisition provides tremendous potential for our shareholders."
Sino Canadian previously reported positive results from work performed by a qualified independent American consultant who recently visited the site. The property is located 160 kilometers southeast of Xining, the capital of Qinghai Province in northwest China.
Exploration work will be focused on defining the continuity and extents of the ore body, the variation in grade throughout the zone, and the metallurgical characteristics of the mineralization. Subsequent work will determine the feasibility of the construction and operation of a mine and processing facility at the site.
The Companies
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec whose primary activity is in mine development and production of gold. Through its majority owned subsidiary, Sino Canadian Metals Inc., it also participates in other mineral exploration and mining, specifically, silver, nickel, zinc and lead.
Sino-Canadian Metals Inc. is a private Delaware corporation, headquartered in Montreal, Quebec and 63% owned by EDLT. It is the intent of Sino-Canadian Metals to become a publicly traded company in the U.S. within the next 12 months.
The geographic focus of the Companies is China. With funding for current needs in place, majority interest in several highly-prospective properties, experienced personnel, and an extensive network of contacts in China, the Companies are on-track in implementing their 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.