Gold Bag Inc subsidiary to acquire all outstanding shares of Metallum Resources Plc

Gold Bag, Inc, which operates as Focus Gold Corp, Monday announced its newly created, wholly-owned subsidiary, Focus Celtic Gold Corporation, will purchase all outstanding shares of Metallum Resources, PLC.  
Metallum Resources is a gold and base metals explorer with a focus in Northern Ireland, Republic of Ireland and Scotland. Metallum, founded in 2006, is an unlisted public company incorporated under the laws of England and Wales.

With the acquisition of Metallum, the company will acquire 100% ownership of thirty one exploration licenses covering in excess of 388,000 hectares. The licenses consist of fourteen licenses in Northern Ireland, sixteen licenses in Republic of Ireland and one license in Scotland, the Fore Burn target.

The licenses variously target gold, silver, copper, base metals and geothermal energy resources. Additional potential exists to explore for platinum group elements, nickel and uranium within the existing licenses.

The Metallum licenses target clearly-defined objectives across Scotland, Northern Ireland and Republic of Ireland with direct analogies to known high grade gold and base metals deposits in Canada and Republic of Ireland.

Metallum acquired its licenses in Northern Ireland by exploiting data from the UK Government's £6.5m TELLUS ultra-high resolution aeromagnetic geochemical and geophysical surveys. Several Metallum licenses are adjacent to the SA Resources (Dalradian) licenses (2.8 million ounce gold indicated and inferred resources).

The Metallum and SA Resources (Dalradian) licenses together cover the entire outcrop of the highly prospective Tyrone Igneous Group. Upon closing, Focus Celtic Gold will commence geophysics and drill programs on selected gold/silver targets on its Scottish and Northern Ireland properties.

In addition, Metallum has a number of base metal targets on its Northern Ireland and Republic of Ireland properties. Metallum's team has already discovered outcropping "Galena" veins (lead/zinc ore) in Clogher Valley. Ireland is one of the richest base metal provinces in the world hosting three of the world's highest grade lead/zinc mines. Focus Celtic Gold will commence an exploration drilling program on identified targets in 2011.

Under the terms of the Agreement, the company will purchase all of Metallum's outstanding shares (currently 73,812,457 shares) at a price of GBP £0.10 per share through the issuance of Gold Bag common shares.

The closing of the Agreement is subject to Metallum's shareholder approval and certain other conditions. Gold Bag is required to have, for investment in Focus Celtic Gold, US$2,000,000 in working capital at the time of closing. Upon closing, Metallum Chairman, Neill Arthur, will manage Focus Celtic Gold.

28 feb 2011