As previously reported, in conjunction with a series of proposed transactions between Firstgold Corp. and the Xi'an, China headquartered Northwest Non-Ferrous International Investment Company Limited ("Northwest"), the parties sought to obtain necessary regulatory approvals including the filing of a joint application by Northwest and Firstgold with the Committee on Foreign Investment in the United States ("CFIUS") on October 6, 2009. On November 6, 2009 Firstgold and Northwest were informed by CFIUS that additional time was required to complete their review of the Application pursuant to applicable authority and invoked an additional 45-day period in which to perform a full investigation of the Application. Pursuant to discussions between CFIUS and representatives of the Applicants, CFIUS made its determination to disapprove the Application and determined that no mitigation scenarios could sufficiently resolve the identified national security issues.

On December 21, 2009 Northwest requested to withdraw the CFIUS Application which terminated the CFIUS review process. In conjunction with this action, Northwest indicated it would not proceed with the proposed transactions with Firstgold and moved to unwind the Binding Offer Letter which included a request for reimbursement of the $1,000,000 previously advanced to Firstgold and its secured lenders.

In light of these recent and unexpected developments, all parties to the transactions, including Firstgold's secured lenders, are assessing their positions and future courses of action.

http://biz.yahoo.com/e/091224/fgoc.pk8-k_a.html