MONTREAL, Dec. 6, 2004 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT), announced today that it has successfully completed an equity financing of US$720,000. This is East Delta's second round of financing this year, raising a total in excess of US$1,200,000 for the Company. The funds will provide more than sufficient operating capital for the next 12 months, mostly to further develop the Company's major property in China, as well as adequate funds for placing deposits toward the acquisition of three additional mining properties that have attracted the Company's interest.
"The Company's near-term strategy calls for a two-pronged approach to our business in China," said Victor Sun, President & CEO of East Delta Resources. "On the one hand, we will develop our own major property at Bake while simultaneously we are looking to acquire existing mining operations. With these funds we are now in a strong financial position to aggressively pursue both aspects of our plan. While US$1,200,000 is not a large amount in the mining business, labor costs in China are significantly lower than in North America, allowing us to accomplish substantially more with relatively lower cash outlays."
As previously announced, East Delta, through its wholly owned subsidiary Amingo Resources Inc., holds a Joint Venture agreement with the provincial and county governments of Guizhou Province and Jinping County, (China) respectively, to explore and mine gold within their territories. Under the terms of the agreement, Amingo has acquired rights to develop a 72 square kilometer property named "Bake".
Over the past years, Guizhou provincial government geologists, in conjunction with East Delta's own scientists, have undertaken substantial exploration at Bake including geo-chemical soil and rock sampling, pitting, trenching and short exploratory adits. Data collected so far on this property indicates at least four independent gold bearing ore bodies, with more extensive work confined to one zone within Bake. The results of work in this latter area were previously made public through the release of a report concluding that the data outlines a high-grade ore body with indicated gold reserves of 1,020,448 ounces, (2.9925 million tonnes of ore with an average grade of 9.69 g/tonne Au). The exploration work that formed the basis of these projections covered less than 5% of the surface area of the entire property and was limited to 60 meters in depth. The cost of extraction has been estimated at less than US$175 per ounce.
In addition, East Delta has signed two letters of intent to acquire existing gold-producing properties near its Bake property. These projects are still in the due diligence phase of potential acquisition.
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.