SOURCE: Gold Bag, Inc.

December 31, 2010 08:30 ET

Gold Bag Announces Closing of High Grade Gold Project in Mexico

RENO, NV--(Marketwire - December 31, 2010) - Gold Bag, Inc. (OTCBB: GBGI) (PINKSHEETS: GBGI) ("GBGI") has closed it previously announced acquisition of Fairfields Gold S.A. de CV ("Fairfields"). On December 14, 2010 Fairfields and GBGI signed a minor amendment to the previously announced definitive agreement. With the issuance of 13.5 million GBGI common shares to the owners of Fairfields and completion of all due diligence the transaction has now closed.

Fairfields owns an option to acquire 100% of the Huicicila gold project (the "Project") in Nayarit, Mexico. The Huicicila project is a high grade gold-silver mesothermal vein system with strong possibilities to become a large high grade ore deposit. The Project was historically mined by Asarco back in the 1930s. The Project is located 25 kilometers southeast of Tepic and 10 kilometers northwest of Compostela in the State of Nayarit. The Project is covered by five mining claims with a surface of 1012 hectares. At present, at least 9 veins are known within the property, with only one being explored recently, the Miravalles vein. 

As part of the transaction, Eduardo Zayas has joined the board of GBGI and will be the President of Focus Gold Mexico Corporation. Eduardo has over 15 years of experience in the financial services industry as an asset manager and has been president of Fairfields for the past year. The entire Fairfields management and operating team will be staying on to help operate Focus Gold Mexico going forward. 

Grant White, CEO of GBGI, commented, "We are delighted to close the acquisition of this very attractive high grade gold-silver asset in Mexico. The historical information clearly indicates high grade gold values and with nine known vein systems and minimal historical investment we feel there is an opportunity to develop a highly profitable gold mining operation with scale. We are also very excited to be working with the Fairfields management team in Mexico and believe with their experience, business network and local knowledge that we will be able to source additional high return gold projects in Mexico in 2011."

About Gold Bag Inc.

Gold Bag Inc. is a Company focused on acquiring and developing gold mining properties primarily in the Americas. Its assets include a recently signed option agreement with Victoria Gold for two properties in the Timmins Mining District and through its wholly owned subsidiary Focus Gold Mexico Corp., the Huicicila mine in Mexico. For further information please visit www.focusgoldcorp.com.

Contact Information

  • Gold Bag, Inc.
    Grant White
    CEO
    (416) 593-8034 ext. 2115

    Investor Relations:
    Desert Son
    Kurt Schemers
    (623) 465-0844