Carpathian Gold Inc. announced Thursday that it has agreed to acquire a ball mill and crushers for its Riacho dos Machados gold project in Minas Gerais, Brazil. The investment will cost Carpathian a sum consideration of US$9 million for the equipment and technical information. Carpathian said the investment will be funded from its financial resources.

The acquired Plant is new and is presently in original manufacturers’ shipping containers having originally been commissioned by another mining company for a project that was not developed. Closing of the acquisition is expected to take place on or about January 31st 2011.

This acquisition secures a key component for the development of the RDM Gold Project and will not only provide a savings to the overall capital expenditures of the Project, but more importantly will save a substantial amount of lead-time compared to the purchasing of a similar Plant, which would normally require up to 16 months of delivery time. In addition, the purchase achieves an important step towards Carpathian’s objective of seeing the Project in production in 2012.

The crushing and grinding plant has a capacity of up to 9,000 tons per day. The acquisition includes two HP500 cone crushers, a 9300kW grinding mill, motors, ancillary equipment, spare parts, and detailed technical information and engineered drawings.

Although the current Project studies call for a 7,000 ton per day facility, the Plant’s additional capacity will facilitate increased processing rates of potential ore expansion from future underground operations, open pit extensions and for the discovery of any new satellite deposits.

The Carpathian Corporation is an exploration and development company whose immediate business interest is to develop gold production in the near term at its 100% owned Riacho dos Machados Gold Project in Brazil. Currently, the Feasibility Study for the RDM Gold Project is being completed.

As the RDM Gold Project is being developed to the production phase, Carpathian will advance its exploration and development plans for its 100% owned Rovina Valley Au-Cu Project located in Romania. When the Rovina Project is brought into production, this will elevate the firm’s gold output resulting in it becoming a substantial mid-tier gold producer.

The Riacho dos Machados Gold Project is targeted to produce in the order of 100,000 ounces of gold per annum, with the initiation of construction during the first half of 2011 and anticipated production startup in late 2012.