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."
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
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.
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.