Radius acquisition, financing and joint venture closed
Radius Explorations Ltd RDU
Shares issued 6,197,620 Jun 22 close $0.90
Thu 22 Jun 2000 News Release
Mr. Simon Ridgway reports
The Canadian Venture Exchange has accepted for filing the following
property acquisitions and financing transactions.
The company has closed the non-brokered private placement of 1,876,500
units at 80 cents per unit announced March 1, 2000, providing financing of
approximately $1.5-million. These finances will be used to continue
exploration work on the El Tambor prospect in Guatemala, to continue the
regional exploration programs continuing in Guatemala and Mexico, and for
general working capital. In addition, the company received $375,000 through
the exercise of warrants which were to expire on April 28,2000.
The company has also closed the financing and option agreement with Barrick
Gold Corporation covering the El Salitre gold prospect in central Mexico,
whereby Barrick has purchased 400,000 units of Radius at a price of $1.25
per unit for initial proceeds of $500,000. Each unit consists of one common
share of Radius and two share purchase warrants exercisable at $1.50 and
$2.50 for six and 12 months respectively.
The initial $500,000 and the potential additional financing of up to
$1.6-million, contingent on exercise of the Barrick warrants, will be spent
on jointly approved work programs on the El Salitre property. Radius will
be the operator of these programs.
Fieldwork on the property commenced on June 6 with the mobilization of the
geologic crew. Gold mineralization is associated with hot springs sinter
and can be traced for seven kilometres along a 35-kilometre-long graben
fault. A two- to three-month mapping and sampling program is aimed at
defining the mineralizing fault prior to drill testing. Preliminary data
from the program indicate the mineralization may be more extensive due to a
pervasive soil and volcanic ash layer that precludes visual detection. Test
pitting will be an important factor in the continuing study work. A minimum
2000-metre drill program in anticipated to begin in early September.
The company has been granted the right to acquire a 100-per-cent interest
in the El Tambor gold prospect located in Guatemala. The initial payments
have now been made to Tombstone Aruba AVV of $150,000 cash and 50,000
shares of Radius. The option agreement requires additional payments to
Tombstone totalling $150,000 cash and 150,000 shares of Radius over a
three-year period.
The El Tambor property hosts an epithermal gold zone related to a
hot-spring centre. Due diligence sampling by Radius at the Bridge zone has
defined a continuous gold zone grading 3.89 grams per tonne across 75
metres and 2.58 g/t across 65 metres. Recent ash cover, however, makes it
difficult to expand or interpret the mineralization in this area of the
property. Currently, work is focused on locating new zones on the property
but thick vegetation and soil cover hamper prospecting. Several anomalies
have been located and will require trenching and detailed sampling.
(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com |
