Funding secured to commence drilling at Plata Verde silver project with drilling team mobilized to field
news release
March 5, 2024
Funding secured to commence drilling at Plata Verde silver project
with drilling team mobilized to field
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 San Julian”), 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 , have signed an option agreement in order to mobilize field teams and drill
equipment to the Plata Verde project. The option agreement replaces the exclusivity agreement signed
in July 2022 under which the companies had been co -operating on exploration. The new agreement
provides for an initial investment of US$250,000 to mobilize drilling and field teams, and a second
investment of US$250,000 will be made on the day the drilling commences, with further funding
provided as approved by the technical committee under the terms of the option agreement.
Bruce Smith, Radius Gold President and CEO , commented: “We were pleased to deploy the joint
geological team to initiate our maiden drilling program at Plata Verde. This project has many of the
qualities that companies look for when assessing the potential to make a discovery. Plata Verde is located
in a prolific silver mining district, it has never been drill -tested and has demonstrated significant silver
mineralization in surface and underground rock chip sampling , excellent recoveries in metallurgical
testing and has a history of bulk-tonnage production. Fresnillo is one of the largest silver producers in the
world and has significant expertise in Mexico and the Sierra Madre, and with a joint team to define the
exploration program, we have the best chance to make a discovery.”
Plata Verde Project
The Plata Verde project located in Chihuahua, Mexico, was re-discovered by Radius Gold, and is a historic,
large-scale, underground, bulk tonnage silver mining operation. Plata Verde is located east of the historic
Batopilas silver mining district (1708 to 1920) which reputedly produced over 300 million ounces of silver
from high grade veins and structures. In 2022 and 2023, Radius and Fresnillo completed a geophysical,
rock channel sampling and metallurgical program , and a new road was constructed to enable access to
the property.
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Option Agreement Summary
• Minera San Julian would spend over a four year period a minimum cumulative amount of US$
4,762,000 million on exploration activities at the Plata Verde Project.
• Minera San Julian would make option payments to Geonorte totaling US$ 2,825,000, which
includes US$825,000 to cover underlying property agreements.
• Minera San Julian would have the right to earn a 70% interest in the Plata Verde Project.
• If the option is exercised, a new company (NewCo) would be set up to own the Plata Verde Project,
Newco would be owned 70% by Minera San Julian and 30% by Geonorte.
• Any additional funding required by NewCo would be provided by Minera San Julian and Geonorte
in proportion to their respective ownership interests in NewCo.
• Should either party’s interest fall below 10% interest in NewCo that interest would convert to a
2% NSR.
• Each party will have the right of first refusal to acquire the other party’s shares in NewCo if the
other party receives a firm offer for its interest in NewCo that the other party would propose to
accept.
Radius Gold Inc.
Radius has a portfolio of projects located in Mexico and Guatemala which it continues to advance, utilizing
partnerships where appropriate to retain the Company’s treasury. At the same time, management is
seeking out additional investment and project acquisition opportunities across the globe. Radius is a
member of the Gold Group of companies, led by Simon Ridgway. You may find more information 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: [email protected]
Website: www.radiusgold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news release constitute forward -looking statements within the meaning of
Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-
looking statements and include, without limitation, statements about the Company’s plans for its properties. Often,
but not always, these forward looking statements can be identified by the use of words such as “estimate”,
“estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”,
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“gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”,
or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative
variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially different from any results,
performance or achievements expressed or implied by forward -looking statements. Such uncertainties and factors
include, among others, changes in general economic conditions and financial markets; the Company or any joint
venture partner not having the financial ability to meet its exploration and development goals; risks associated with
the results of exploration and development activiti es, estimation of mineral resources and the geology, grade and
continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in
the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on
SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in forward-looking statements, there may
be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to: that the Company’s stated goals and the planned exploration and
development activities at its properties will be achieved; that there will be no material adverse change affecting the
Company or its properties; and such other assumptions as set out herein. Forward -looking statements are made as
of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as
a result of new information, future events or results or otherwise, except as required by law. There can be no
assurance 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 should not place undue reliance on
forward-looking statements.