News out this morning
Radius extends Plata Verde exclusivity deal with Minera
2023-07-19 09:54 ET - News Release
Mr. Bruce Smith reports
RADIUS GOLD SIGNS AGREEMENT TO EXTEND PLATA VERDE EXCLUSIVITY AGREEMENT WITH FRESNILLO PLC FOR 6 MONTHS AND CONTINUED PROJECT FUNDING
Radius Gold Inc.'s wholly owned subsidiary, Geometales del Norte-Geonorte SA de CV, has extended the term of its exclusivity agreement with Minera San Julian SA de CV, a wholly owned subsidiary of Fresnillo PLC, for Radius's 100-per-cent-owned Plata Verde project in Chihuahua, Mexico. The amended agreement provides Minera San Julian a six-month extension to its exclusivity period from July 7, 2023, to Jan. 7, 2024, to negotiate a definitive agreement that would include an option agreement to earn a 70-per-cent interest in the Plata Verde project. The amended agreement also provides for interim financing by Minera San Julian of $206,000 (U.S.). The initial exclusivity agreement with Minera San Julian was announced in the company's news release dated July 12, 2022.
Bruce Smith, president and chief executive officer of Radius Gold, commented: "To date, Fresnillo has been advancing technically and spending significant funds in the field in the last nine months that included road building, drill pads, geological work and initial metallurgical testing that yielded excellent silver recoveries from Plata Verde. This amended agreement provides the framework for both parties to negotiate a definitive agreement while continuing to fund the project. The Plata Verde project has never been drill tested, and based on historical work and current data, the Radius team believes that the project has potential for a large-scale silver discovery."
Highlights of the amended exclusivity agreement are summarized below:
- Geonorte extends the exclusivity period with Minera San Julian to evaluate the project and negotiate a right to earn a 70-per-cent interest in the Plata Verde as part of a definitive agreement.
- Amended exclusivity agreement is in effect from July 7, 2023, until the earlier of Jan. 7, 2024, or the date of signing a definitive agreement.
- Minera San Julian has the right to extend the exclusivity period for six additional months beyond Jan. 7, 2024, provided that Minera San Julian has made the payment of $206,000 (U.S.) as mentioned above to Geonorte as well as an additional advance of $500,000 (U.S.) to finance initial drill testing.
Technical information
Mr. Smith, MSc (geology), a member of the Australian Institute of Geoscientists, is Radius's 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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