SOURCE: Gold Bag, Inc.

March 22, 2011 08:30 ET

Gold Bag, Inc.'s Focus Gold Corp Raises Over $1.5 Million for Exploration and Development

RENO, NV--(Marketwire - March 22, 2011) - Gold Bag, Inc. (OTCBB: GBGI), operating as Focus Gold Corp, has raised over $1.5 million in a private placement of restricted stock. The proceeds of the financing will be used to: i) further development and begin exploration work on the Company's Mexican properties; ii) to lend Metallum Resources plc ("Metallum"), in advance of closing the pending acquisition of Metallum, on a first secured basis, $250,000 for the purposes of commencing an exploration drilling program on their Fore Burn Scottish property; and iii) for general working capital purposes.

Focus Gold CEO, Grant White, commented, "We have recently reached the old Asarco block in our refurbishment of the Miravalles tunnel (approximately 420 meters) and are completing geophysical work on several areas of Focus 1. The capital from this raise will allow Focus Gold Mexico to begin exploration drilling once all geologic data has been collected and key drill targets identified. Metallum's Fore Burn property has several drill ready targets and drill contractors identified. It was important not to delay this drill program as our acquisition of Metallum moves towards closing."

Under the terms of the financing, investors will receive one restricted stock unit at a price of $0.40 per unit with each unit entitling the holder to one GBGI common share and a half warrant to purchase a GBGI common share for $0.50 for a period of one year. The Company has the ability to force early exercise of the warrants under certain conditions. 

About Gold Bag, Inc.

Gold Bag, Inc., operating as Focus Gold Corp., is focused on the acquisition and development of gold mining properties throughout the world. Focus Gold's projects include two properties in the Timmins Mining District in Canada through an option agreement with Victoria Gold, the Huicicila and Focus 1 properties in Mexico through the company's wholly owned subsidiary Focus Gold Mexico Corp., 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

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

    Investor Relations:
    Desert Son
    (623) 465-0844

    Small Cap Power
    Mark Thorburn
    416 646-1941