Radius options Nicaragua properties to B2GoldRadius Gold options Nicaragua properties to B2Gold
2009-06-29 09:59 ET - News Release
Also News Release (C-BTO) B2Gold Corp
Mr. Simon Ridgway of Radius reports
B2GOLD OPTIONS RADIUS'S NICARAGUAN PROJECT PORTFOLIO
Radius Gold Inc. has granted B2Gold Corp. an option to acquire an interest in its mineral property portfolio in Nicaragua.
Simon Ridgway, the president of Radius, said: "We are delighted to have reached a comprehensive option agreement with B2Gold that will ensure that our property portfolio is explored and developed by an experienced group with current mining operations in Nicaragua. If B2Gold decides to develop the conceptual gold resource defined by Meridian Gold on our Pavon project, Radius will receive 40 per cent of the net cash flow from production."
Radius began exploring in Nicaragua in 2003. In addition to discovering a number of exploration projects with potential to host gold resources; specifically the Trebol, Pavon and San Pedro exploration properties, Radius's technical team also compiled an extensive regional exploration database covering much of the Central American country. The agreement with B2Gold consists of three parts.
Trebol, Pavon and San Pedro
Radius has granted B2Gold an option to acquire a 60-per-cent interest in the properties by expending a total of $4-million (U.S.) on exploration of any one or more of the properties within four years from the date of the agreement. When B2Gold has spent the $4-million (U.S.), it will own a 60-per-cent interest in all of the properties and a joint venture will be formed in under which each party will contribute its prorated share of the exploration costs.
Production from the Pavon resource property
In 2005 Meridian Gold completed a two-stage exploration drill program at the Pavon vein system. Internal company work by Meridian led to the outlining of a conceptual gold resource on specific parts of the Pavon vein system which are being contemplated separately to the properties described above.
Under the Pavon resource property agreement, B2Gold will have an option to review the conceptual gold resource outlined by Meridian Gold. If B2Gold feels that there is potential to mine any or all of the resource, it will have an option to put the property into production within a time frame of three years. After production is achieved, ownership of the Pavon resource property will be transferred 100 per cent to B2Gold and Radius will receive 40 per cent of the net cash flow generated from the operation.
The regional exploration projects
Radius has assembled an extensive database of regional geological, geochemical and geophysical data covering much of Nicaragua. It has agreed to provide this to B2Gold, on an exclusive basis. If as a result of reviewing the regional data, B2Gold identifies a prospect or project for acquisition and exploration on ground that is not covered by an existing concession, Radius will apply for a concession over the area and that area will then be designated a project area.
Following the granting of a concession, B2Gold will have the option to earn a 70-per-cent interest in any such designated project area by expending $2-million (U.S.) on exploration of it within three years from the date of the granting of the concession. Once B2Gold has spent $2-million (U.S.) exploring the designated project, it will be vested with a 70-per-cent interest in the project and a joint venture will be formed.
Qualified person
The technical information in this release was prepared under the supervision of David Cass, Radius'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.