Radius Gold and Volcanic Gold Mines announce modification to Option Agreement to include the Motagua Norte project
news release
September 18, 2023
Radius Gold and Volcanic Gold Mines announce modification to Option
Agreement to include the Motagua Norte project
Vancouver, British Columbia – Radius Gold Inc. (TSXV: RDU) (“Radius” or the “Company”) and Volcanic
Gold Mines Inc. (“Volcanic”) are pleased to announce that they have modified the Option Agreement
signed in 2020 (see Radius News Release September 3, 2020) to include Radius’s Motagua Norte project
in exchange for the Banderas project. The work that the Volcanic team has completed to date has
demonstrated that Motagua Norte is a high grade orogenic gold system with compelling drill targets.
Highlights
• Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly
and Motagua Norte projects if Volcanic spends US$7M on exploration of the properties within
48 months from March 2021, being the date drilling permits were granted for the Holly project.
• Volcanic has invested ~US$4.29 M in exploration on Holly, and under the modified Option, a
minimum of $2.0M will be directed at the exploration and drilling of Motagua Norte.
• Volcanic’s geological team spent considerable time and resources evaluating Radius’s 340,000
ha regional applications in eastern Guatemala and identified the Motagua Norte prospect as high
grade orogenic gold system with compelling drill targets.
The modified Option Agreement is subject to approval by the TSX Venture Exchange. As Radius and
Volcanic have a common director and two common officers, Volcanic is a “non -arm’s length party” to
Radius within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not,
however, a “related party transaction” as defined in Multilateral Instrument 61 -101, Protection of
Minority Security Holders in Special Transactions (“MI 61 -101”) and therefore the requirements of the
Exchange’s Policy 5.9 and MI 61-101 do not apply.
Technical Information
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Radius’ Qualified
Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Smith
has 28 years of mineral exploration experience and has prepared and approved the technical information
contained in this news release.
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Radius Gold Inc.
Radius has a portfolio of projects located in Mexico and Guatemala which it continues to advance, utilizing
partnerships where appropriate in order 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
Bruce Smith
President and CEO
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 the Investment Industry Regulatory Organization of Canada 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 results of exploration work and future
plans at the Company’s projects. 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”, “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, whether the planned exploration work at the Company’s projects will proceed as intended;
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 activities, 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
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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.