AUGUSTA, Ga., May 16, 2007 (PRIME NEWSWIRE) -- Demobag Brands, Inc. (Pink Sheets:DMGB) today announced that the corporate reorganization with Global Strategies, Inc. has been terminated and that it has undertaken a restructuring with Tian Yuan Mining Company in China. The Company completed a 1 for 10 reverse stock split and changed its name to China Gold Resource, Inc. R Capital Partners rescinded and terminated the agreement with Global Strategies when they failed to meet their financial requirements under the agreement.
M. Richard Cutler, President of R Capital Partners, reported, "Unfortunately Demobag Brands was unable to meet its contractual obligations in connection with the acquisition of the company. We continue to be a strong believer in the Demobag product line and wish them success. We are, however, thrilled to undertake a new venture with Tian Yuan Mining and China Gold Resource in what has been and will be a very lucrative mining operation in China."
The newly combined Company will continue the business of Tian Yuan Mining Company in China, located in the Gansu Province, which is about four hours flight from the famous city of Xi'an. The Company will provide additional information about its operations in the near future in other press releases.
Forward-Looking Statements: Certain information and statements included in this release are intended to constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements