VANCOUVER, July 27, 2011 /PRNewswire/ - Radius Gold Inc.
(TSXV: RDU) announces that its Board of Directors has determined
that the ratio of securities to be issued under the proposed Spin
Out transaction announced on May 27,
2011 will be one common share and one full warrant in Newco
for every three Radius shares held. Each Newco warrant will entitle
the holder to purchase one common share of Newco at $0.50 for a period of 18 months after listing of
Newco. Following completion of the Spin Out, Radius will hold
19.9% of the issued shares and warrants of Newco.
It is proposed that Newco will hold all of
Radius's existing Yukon projects
and $1.0-million in cash. The
implementation of the Spin Out is subject to, among other things,
Radius shareholder approval, court approval and TSX Venture
Exchange approval. The shareholders' meeting will be held in
October 2011.
The objective of the Spin Out is to maximize
shareholder value by allowing the market to independently value
geographically separate property portfolios. The Spin Out will
result in two strategically positioned companies, one focused on
Latin America and the other
focused on the Yukon.
William Katzin Appointed to Board of
Directors
The Board has also unanimously approved the
appointment of Mr. William Katzin as
a Director of Radius. Mr. Katzin is a graduate of the
University of Cape Town, South
Africa with a Bachelor of Commerce and Law degree. He is a
member of the Institute of Chartered Accountants of British Columbia. He has been a partner in
private practice with a Vancouver
firm of Chartered Accountants since 1986 and has experience working
with resource and exploration companies.
The Company has granted an incentive stock
option to Mr. Katzin to purchase up to 150,000 common shares
exercisable for ten years at a price of $0.81 per share.
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
a number of 100% owned exploration plays, including the HB property
in Guatemala and several
properties in the Rackla Belt and Sixty Mile placer gold district
in the Yukon.
ON BEHALF OF THE BOARD
"Simon Ridgway"
Simon Ridgway, President &
CEO
Investor relations: Ralph
Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 86.5-million
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 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.
SOURCE Radius Gold Inc.