VANCOUVER, Oct. 15 /CNW/ - Ralph Rushton, a Director of Radius Gold Inc. (TSX-V: RDU), is pleased to report that the TSX Venture Exchange has approved the Ten Mile Creek option to Solomon Resources Limited ("Solomon") (see Radius press release dated September 22, 2009). As per the terms of the agreement, Solomon has now issued 500,000 common shares in its capital stock to Radius.
Solomon can earn a 51% interest in the property by spending $2.5m on exploration and making staged cash and share payments of $500,000 cash and 1 million shares over 3 years, according to the following schedule:
- Issuing to Radius 500,000 shares upon signing and TSX approval of the
- Paying $100,000 in cash and issuing 100,000 common shares of Solomon
to Radius on May 21st, 2010, and committing to spend $350,000 during
the 2010 exploration season;
- Paying $150,000 cash and issuing 150,000 common shares of Solomon to
Radius on May 21st, 2011, and committing to spend $650,000 during the
2011 exploration season;
- Paying $250,000 cash plus issuing 250,000 common shares of Solomon on
May 21st, 2012, and committing to spend $1,500,000 during the 2012
On completion of the earn-in, a 51:49 joint venture would be formed going forward. The joint venture would cover all costs related to the project on a pro rated basis.
Ten Mile Creek is an active placer-gold-producing creek in the Yukon with significant historic production. The headwaters of Ten Mile drain an area underlain by an intrusive complex of probable Cretaceous age. Work by previous operators in the area identified anomalous gold values in stream sediment, soil and rock samples. The area has never been drill tested.
The scientific and technical information in this release was prepared under the supervision of David Cass, Radius Gold's Vice-President of Exploration, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a Qualified Person in accordance with National Instrument 43-101.
Radius Gold Inc. has been exploring for gold in Central America for nearly a decade, and management is currently assembling a portfolio of royalties on promising gold projects across the Americas. In Guatemala, under joint venture with Kappes Cassidy, Radius is developing a small, high grade gold mining operation on the Tambor project. Radius recently optioned the Nueva California project in Peru for 1-million shares in Focus Ventures and royalty interests in any future production from the project. In Nicaragua, B2Gold is exploring Radius's extensive land holdings and investigating early gold production opportunities from the Pavon project.
ON BEHALF OF THE BOARD
Director & VP, Corporate Development
Investor relations: Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.5-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Radius Gold Inc.
For further information: For further information: on Radius Gold Inc. and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com)