MONTREAL, June 3, 2004 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT), formerly AVIC Technologies Ltd., announced today that it has successfully completed a first round private equity placement of $500,000. The funds are expected to provide sufficient operating capital for the next 12 months, permitting the company to begin its much-anticipated exploration and drilling program on its Bake Gold Project property in Guizhou Province, China, through its Chinese Joint Venture company, Guizhou Amingo Resources Inc.
"With these funds we are now in a financial position to call for tenders from Chinese drilling companies to begin to work our property," said Victor Sun, President & CEO of East Delta Resources. "While $500,000 is not a large amount in the mining business, labor costs in China are significantly lower than in North America, resulting in accomplishing substantially more with relatively lower cash outlays."
The 72 square kilometer Bake property is located 350 kilometers by road northeast of the provincial capital, Guiyang. The project is adjacent to the producing Jinloon Gold Mine, which is not part of the Bake Gold Project, but currently has a 170-ton per day underground operation. According to Chinese government calculations, Jinloon contains total reserves of 6.3 million ounces of gold, with a current average production grade of 6.5 grams gold per gross ton (or 0.232 ounces/ton).
East Delta anticipates being able to report on the preliminary results of its Bake-property work before the end of 2004.
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.