SOURCE: Focus Gold Corp, Inc.

August 08, 2011 08:29 ET

Focus Gold Corp Nears Closing of the Metallum Acquisition

RENO, NV--(Marketwire - Aug 8, 2011) - Focus Gold Corporation (OTCBB: FGLD) and Metallum Resources plc have agreed that for the purposes of setting the Exchange Ratio, a closing date of June 30, 2011 will be used. Based on the Exchange Ratio provided for and expressed in the definitive agreement signed on February 21, 2011, pricing of Focus Gold shares for this purpose was averaged over the 10 day trading period ending on June 23, 2011 which was approximately $0.49/share. The foreign exchange rate between the $US and £Stg on June 29, 2011 was approximately 1.60. Thus the agreed Exchange Ratio for each Metallum fully paid Share at £Stg 0.10/Metallum Share is 0.325 Focus Gold Shares. Metallum has approximately 75 million shares outstanding and approximately 65 million options outstanding. The transaction has received over 98% approvals from Metallum shareholders and optionholders and is expected to close shortly.

With the acquisition of Metallum, Focus Gold will acquire 100% ownership of thirty one exploration licenses in Northern Ireland, Scotland and Ireland covering in excess of 388,000 hectares, including licenses near and in geology identical to Dalradian Resources (DNA on the TSX) in N. Ireland. The licenses cover areas of known mineral occurrences and geochemical anomalies in terrain that is geologically prospective for a number of deposit types for a variety of metals. The main emphasis will be on advancing gold and gold-copper targets though there is also the potential for poly-metallic massive sulphides. Focus Gold's extensive review of data on the Metallum licenses has identified 3 priority areas that will be the focus of initial exploration: Fore Burn, Scotland (gold-copper); Sperrins, N. Ireland (gold) and Clogher Valley, Ireland and N. Ireland (base metals).

Grant White, CEO of Focus Gold, commented, "We are excited to near the closing of this acquisition. Since signing the definitive agreement we have lent Metallum approximately $350,000 to further their business and their exploration efforts with significant progress having been made, including:

i. In Scotland, we have compiled all historical data and identified and field checked sites for an initial 6 - 8 hole drill program to test high grade gold / copper intersections identified by RTZ's previous work in the eastern half of the target area and to test new targets in western half of target area. Target generation work has shown that the Fore Burn target itself is likely part of a larger favorable province of gold mineralization within our license area. This has expanded the area considered prospective several-fold. We intend to start a drilling and regional follow-up program shortly after closing;

ii. In Northern Ireland, we have compiled existing geochemical data and determined that we have dozens of anomalous gold occurrences within our license area in geology similar to nearby Dalradian Resources who trade on the TSX (Indicated 400,000 ozs. Au @ 13.24 gpt plus Inferred 1,160,000 ozs. Au @ 14.64 gpt). We will commence a work program focused on drill target generation following up on these anomalies right after closing;

iii. At Clogher Valley on the Northern Ireland, Ireland border, several areas have been identified where geology is prospective for world class Irish type zinc-lead massive sulphide deposits. Data compilation has revealed several areas of anomalous zinc and lead occurrences in soil. We are optimistic that follow up of these anomalies together with further detailed definition of zones of prospective geology will lead to drill targets.

The recent US and global economic uncertainty should be a further catalyst for the gold price which reinforces the strength of our global gold property acquisition strategy for investors. We continue to make great progress in Mexico and are excited about the future addition of Metallum."

About Focus Gold Corporation

Focus Gold acquires and develops gold mining projects around the world. Focus Gold's current projects include the multiple Nayarit claims with a copper-gold porphyry system in Mexico through the company's wholly owned subsidiary Focus Gold Mexico Corp., two properties in the Timmins Mining District in Canada through an option agreement with Victoria Gold, and the pending acquisition of Metallum Resources PLC, holder of exploration licenses in Northern Ireland, Republic of Ireland and Scotland through the company's wholly owned subsidiary, Focus Celtic Gold Corporation. For further information please visit www.focusgoldcorp.com.

Contact Information

  • Focus Gold Corporation
    Grant White
    CEO
    (416) 593-8034 ext. 2115

    Investor Relations:
    Desert Son
    (623) 465-0844

    Or

    Small Cap Power
    Mark Thorburn
    416 646-1941