VANCOUVER, Nov. 9 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has granted to Wesgold Minerals Inc. an option to earn a 60% interest in Radius' 100% owned Snowcap project in central Yukon Territory. Wesgold is a private B.C. company which intends to apply for a listing on the TSX Venture Exchange.
In order to exercise the option, Wesgold must incur an aggregate of $1,000,000 in exploration expenditures on the property and issue to Radius a total of 1,000,000 Wesgold shares according to the following schedule:
Due date Shares Expenditures
On signing 200,000 -
Dec. 31, 2009 - $ 100,000
On public listing of Wesgold 200,000 -
Oct. 30, 2010 200,000 200,000
Oct. 30, 2011 200,000 300,000
Oct. 30, 2012 200,000 400,000
1,000,000 $ 1,000,000
"Optioning this newly acquired property to Wesgold provides excellent leverage to our shareholders," said Simon Ridgway, President of Radius. "Wesgold is going to complete an aggressive exploration program with skilled personnel at no cost to Radius, while providing us with a significant retained interest."
It is a further condition of the agreement that Wesgold obtain a public listing on the TSX Venture Exchange by May 1, 2010. Once Wesgold has completed its share payments and exploration expenditures, Wesgold and Radius will enter into a 60/40 joint venture to further explore and develop the property.
Wesgold intends to carry out a low-level, high resolution, multi-sensor airborne geophysical survey to map lithological units, structure, and alteration zones at Snowcap. In addition, Wesgold will carry out deep soil sampling to confirm and enhance gold and mercury soil anomalies identified in the 1980's that occur close to a complex sequence of chalcedonic tuffs and phreatic breccias with sinter clasts associated with Tertiary felsic volcanic centres along a 15 kilometre long structural trend. Both Radius and Wesgold consider the known geological and geochemical setting as highly favourable for the location of low-sulfidation, structurally controlled, epithermal gold mineralization.
David Cass, Radius's Vice-President of Exploration, is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is the Company's Qualified Person as defined by National Instrument 43-101. Mr. Cass is responsible for the accuracy of the technical information in this news release.
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 in South and Central America. In Guatemala, under joint venture with Kappes Cassidy, Radius is developing a small, high grade gold mining operation on the Tambor project. In Nicaragua, B2Gold is exploring Radius' extensive land holdings and investigating early gold production opportunities from the Pavon 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.
ON BEHALF OF THE BOARD
Vice-President, Corporate Development
Contact: 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)