VANCOUVER,
Aug. 31, 2012 /PRNewswire/ - Radius
Gold Inc. (TSX-V: RDU) hereby announces the sale of its remaining
interest in Exmingua S.A., the Guatemala based company that holds 100% of the
Tambor Gold Project. Kappes, Cassiday & Associates ("KCA") has
acquired the remaining interest from Radius, giving KCA a 100%
interest in and to the Project. In consideration, KCA will repay to
Radius approximately US$400,000 owing
to the Company ($100,000 on signing,
and approximately $300,000 once KCA
has commenced shipment of gold produced from the property).
Also upon commercial production, KCA will make
quarterly payments to Radius based on the then price of gold and
the number of ounces produced from the property. Radius remains
optimistic that commercial production will be achieved at Tambor
and the Company will be reimbursed for the investment it has made
in the region since discovering gold at Tambor in the year
2000.
Ralph Rushton,
the President of Radius, said: "The sale of our interest in the
Tambor Project is part of our corporate strategy to divest
problematic assets, allowing the Company to concentrate capital and
expertise on areas less conflicted regarding development in the
region."
About Radius
Radius has been exploring for gold in
Latin America for over a decade.
More recently the Company has focused on selling non-core assets,
thereby raising the capital needed to succeed in making a discovery
with potential to give investors the return desired from a mineral
exploration company.
ON BEHALF OF THE BOARD
"Simon Ridgway"
Chairman and CEO
Investor relations: Jaclyn
Ruptash
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 86.6-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.