(TheNewswire)
March 5, 2024 – TheNewswire - Vancouver, British Columbia – Radius Gold Inc. (TSXV: RDU)(“Radius” or the “Company”) is pleased to announce that Minera San Julian, S.A. de C.V. (“Minera SanJulian”), a wholly owned subsidiary of Fresnillo plc(“Fresnillo”) and Geometales del Norte-Geonorte, S.A. de C.V.(“Geonorte”), a wholly owned subsidiary of Radius Gold, havesigned an option agreement in order to mobilize field teams and drillequipment to the Plata Verde project. The option agreement replacesthe exclusivity agreement signed in July 2022 under which thecompanies had been co-operating on exploration. The new agreementprovides for an initial investment of US$250,000 to mobilize drillingand field teams, and a second investment of US$250,000 will be made onthe day the drilling commences, with further funding provided asapproved by the technical committee under the terms of the optionagreement.
Bruce Smith, Radius Gold Presidentand CEO, commented: “We were pleased to deploy the joint geologicalteam to initiate our maiden drilling program at Plata Verde. Thisproject has many of the qualities that companies look for whenassessing the potential to make a discovery. Plata Verde is located ina prolific silver mining district, it has never been drill-tested andhas demonstrated significant silver mineralization in surface andunderground rock chip sampling, excellent recoveries in metallurgicaltesting and has a history of bulk-tonnage production . Fresnillo is one of the largest silverproducers in the world and has significant expertise in Mexico and theSierra Madre, and with a joint team to define the exploration program,we have the best chance to make a discovery.”
Plata Verde Project
The Plata Verde project located in Chihuahua, Mexico,was re-discovered by Radius Gold, and is a historic, large-scale,underground, bulk tonnage silver mining operation. Plata Verde islocated east of the historic Batopilas silver mining district (1708 to1920) which reputedly produced over 300 million ounces of silver fromhigh grade veins and structures. In 2022 and 2023, Radius andFresnillo completed a geophysical, rock channel sampling andmetallurgical program, and a new road was constructed to enable accessto the property.
Option Agreement Summary
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Minera San Julian would spend over a four year period aminimum cumulative amount of US$ 4,762,000 million on explorationactivities at the Plata Verde Project.
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Minera San Julian would make option payments toGeonorte totaling US$2,825,000, which includes US$825,000 to coverunderlying property agreements.
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Minera San Julian would have the right to earn a 70%interest in the Plata Verde Project.
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If the option is exercised, a new company (NewCo) wouldbe set up to own the Plata Verde Project, Newco would be owned 70% byMinera San Julian and 30% by Geonorte.
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Any additional funding required by NewCo would beprovided by Minera San Julian and Geonorte in proportion to theirrespective ownership interests in NewCo.
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Should either party’s interest fall below 10%interest in NewCo that interest would convert to a 2% NSR.
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Each party will have the right of first refusal toacquire the other party’s shares in NewCo if the other partyreceives a firm offer for its interest in NewCo that the other partywould propose to accept.
Radius Gold Inc.
Radius has a portfolio of projects located in Mexicoand Guatemala which it continues to advance, utilizing partnershipswhere appropriate to retain the Company’s treasury. At the sametime, management is seeking out additional investment and projectacquisition opportunities across the globe. Radius is a member ofthe Gold Group of companies, led by Simon Ridgway. You may find moreinformation on Radius Gold at www.radiusgold.com or www.sedarplus.ca .
ON BEHALF OF THE BOARD
Simon Ridgway
Executive Chairman
Symbol: TSXV-RDU
Contact: Bruce Smith
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Tel: 604-801-5432; Toll free 1-888-627-9378; Fax:604-662-8829
Email: info@goldgroup.com
Website: www.radiusgold.com
Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX VentureExchange) acceptsresponsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements includedherein, other than statements of historical fact, are forward- lookingstatements and include, without limitation, statements about the Company’s plans for itsproperties . Often, but not always, these forwardlooking statements can be identified by the use of words such as“estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”,“gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statementsthat events, “could” or “should” occur or be achieved andsimilar expressions, including negative variations.
Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any results, performance or achievementsexpressed or implied by forward-looking statements. Such uncertaintiesand factors include, among others, changes in general economicconditions and financial markets; the Company or any joint venturepartner not having the financial ability to meet its exploration anddevelopment goals; risks associated with the results of explorationand development activities, estimation of mineral resources and thegeology, grade and continuity of mineral deposits; unanticipated costsand expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators andavailable under the Company’s profile on SEDAR+ at www.sedarplus.ca. Althoughthe Company has attempted to identify important factors that couldcause actual actions, events or results to differ materially fromthose described in forward-looking statements, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended.
Forward-looking statements contained herein are basedon the assumptions, beliefs, expectations and opinions ofmanagement, including but not limitedto: that the Company’s stated goals and the planned exploration anddevelopment activities at its properties will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptionsas set out herein. Forward-looking statements are made as of the datehereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors shouldnot place undue reliance on forward-looking statements.
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