VANCOUVER, Nov. 4 /PRNewswire/ - Radius Gold Inc. (TSX-V:
RDU): Ralph Rushton, Director
of Radius Gold, is pleased to announce that the Company has
optioned its portfolio of geothermal concessions in Guatemala to a private geothermal power
company, Molten Power Corp. ("Molten"). Molten will be the operator
of the geothermal exploration project.
Simon Ridgway,
the President of Radius, commented: "We're delighted to be working
with Molten on the exploration and development of our geothermal
concessions. With the tremendous interest in carbon-neutral,
renewable energy, I'm pleased that our exploration programs may be
able to contribute to the development of clean energy sources in
Central America."
Under the terms of the option, and subject to
satisfactory technical and legal due diligence by Molten, Molten
shall have the exclusive right to earn a 100% interest in the
concessions from Radius by issuing 2 million shares in staged
tranches according to the following schedule:
| On signing the definitive option
agreement: |
400,000 shares |
| On 1st anniversary of signing the definitive
agreement date: |
500,000 shares |
| On 2nd anniversary of signing the definitive
agreement date: |
500,000 shares |
| On 3rd anniversary of signing the definitive
agreement date: |
600,000 shares |
| |
Cumulative Total |
2,000,000 shares |
Molten shall also issue to Radius warrants to
purchase up to 1,000,000 shares exercisable for a period of five
years from the date of the definitive agreement at a price of
$3.00 per share.
Royalty
Radius also retains a two percent (2%) royalty
of the Gross Revenue for the sale of geothermal electric power from
the first power generation facility built on each geothermal
licence. Molten may, at its discretion, purchase at any time
prior to the commencement of the commercial operation date one half
(1/2) of the 2% royalty from any geothermal license for the sum of
CAD$30,000/MW nameplate capacity of
the first power generation facility built on each geothermal
licence. Any expansion of the nameplate capacity on any of
the licenses is not subject to royalty payments.
About Molten Power Corp
Molten is a Vancouver based geothermal power development
company. Molten's mission is to create shareholder value through
the acquisition, exploration, development and operation of
geothermal power projects worldwide. Molten's current project areas
of interest include the western USA, Philippines, Guatemala, western Turkey, Indonesia, Eastern
Africa and Hawaii.
About Radius
Radius has been exploring for gold in
Latin America for nearly a decade,
and has assembled interests in a portfolio of promising gold
projects throughout the region, including carried stakes in two
small-scale developing gold projects in Guatemala and Nicaragua. Radius also has two 100% owned
exploration plays, the HB property in Guatemala and the Sixty Mile property in the
Yukon Territory.
ON BEHALF OF THE BOARD
"Ralph Rushton"
Ralph Rushton, Director
Investor relations: Ralph
Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 73.5-million
Forward-Looking
Statement
Some of the statements in this news release contain
forward-looking information that involves inherent risk and
uncertainty affecting the business of Radius Gold Inc.
Actual results may differ materially from those currently
anticipated in such statement.
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.
Copyright v. 4 PR Newswire
