Earth Dragon Resources Inc., a San Diego research firm in the precious metals industry, signed a letter of intent to acquire an unnamed private company in the telecommunications industry, the company said.

The target business is licensed to operate communication infrastructure services, long distance networks, broadband wireless networks, and Internet related services, among other functions, and had year to date gross revenue of $1.1 million, and positive operating cash flow, Earth Dragon said.

The involved parties have begun due diligence and expect to sign a definitive agreement by the end of September.

Earth Dragon CEO Mike Johnson said the acquisition will not deter it from earlier goals. He said the deal will give the company “a great upside for growth as we continue on with the salvage division.”

Earth Dragon (OTC: EARH) identifies opportunities globally in the recovery of precious metals on both land and sea.

— SDBJ Staff Report