VANCOUVER, Nov. 3, 2011 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased
to announce that it has received conditional approval from the TSX
Venture Exchange for the planned spin out of its Yukon assets into a
new company, which will be called Rackla Metals Inc. The implementation
of the spin out is subject to Radius shareholder approval, court
approval and Rackla Metals Inc. completing the listing requirements of
The shareholders' meeting of Radius to approve this arrangement will be
held on December 2nd, 2011, and a management proxy circular containing
full details of the spin out will be sent to the shareholders next
Simon Ridgway, the Chief Executive Officer of Radius, commented, "The
management and board of directors of Radius believe that the proposed
spin out will maximize the value to our shareholders of the
geographically diverse assets within Radius. Rackla Metals will focus
on Canadian exploration, while Radius will return to its roots as a
Central American play."
Spin Out Terms
The terms of the spin out provide that one common share and one warrant
in Rackla will be issued for every three Radius shares held. Each
Rackla warrant will entitle the holder to purchase one common share of
Rackla at $0.30 for a period of 18 months after listing of Rackla. An
application will be made to have the Rackla warrants listed for trading
on the TSX-V. Following completion of the spin out, Radius will hold a
19.9% ownership interest in Rackla Metals Inc.
Radius will retain ownership of all Latin American property and royalty
interests, including the HB project, the Tambor Project and the
geothermal licences in Guatemala, and also the Nicaraguan portfolio
currently under option to B2Gold Corp. It will also hold the Mexican
properties under option to Fortuna Silver Mines Inc. plus shares owned
in other listed companies acquired in relation to various Latin
American properties. Rackla Metals Inc. will hold all of the staked and
optioned properties of Radius located in the Yukon Territory including
the Sixty Mile district, the Rackla belt properties, the Ten Mile
property and various equity interests in other public companies
previously acquired by Radius pursuant to existing Yukon option
Radius has been exploring for gold in Latin America for nearly a
decade. It has assembled interests in a portfolio of promising gold
projects throughout the region, including carried stakes in two
small-scale developing gold projects, one in Guatemala being developed
by Dan Kappes of Kappes Cassiday and one in Nicaragua, and a number of
100% owned exploration plays, including the HB property in Guatemala.
The Company also holds a large land position in the Yukon Territory
which is the subject of the proposed spin out.
ON BEHALF OF THE BOARD
Director & Vice-President, Corporate Development
Investor relations: Jaclyn Ruptash / Ralph Rushton
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 86.6-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Some of the statements in this news release contain forward-looking
information that involves inherent risk and uncertainty affecting the
business of Radius Gold Inc. Actual results may differ materially from
those currently anticipated in such statement.
SOURCE Radius Gold Inc.
For further information:
on Radius and its holdings, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).