Overview, NicaraguaJoint Venture with B2Gold At the end of June 2009, Radius granted B2Gold Corp. ("B2Gold") an option to acquire an interest in its entire mineral property portfolio in Nicaragua. Radius began exploring in Nicaragua in 2003. In addition to discovering a number of exploration projects with potential to host gold resources, specifically the Trebol, Pavon and San Pedro exploration properties, Radius's technical team also compiled an extensive regional exploration data base covering much of the Central American country. The agreement with B2Gold consists of 3 parts: 1. Trebol, Pavon and San Pedro Radius has granted B2Gold an option to acquire a 60% interest in the Properties by expending a total of US$4 million on exploration of any one or more of the Properties within 4 years from the date of the agreement. When B2Gold has spent the US$4m, it will own a 60% interest in all of the Properties and a joint venture will be formed under which each party will contribute its pro rated share of the exploration costs. 2. Production from the Pavon Resource Property In 2005 Meridian Gold completed a 2 stage exploration drill program at the Pavon vein system. Meridian outlined a conceptual gold resource on specific parts of the Pavon vein system which are being contemplated separately to the Properties described above. B2Gold has an option to review the conceptual gold resource outlined by Meridian Gold. If B2Gold feels that there is potential to mine any or all of the resource, it will have an option to put the property into production within a time frame of 3 years. After production is achieved, ownership of the Pavon Resource Property will be transferred 100% to B2Gold and Radius will receive 40% of the net cash flow generated from the operation. 3. The Regional Exploration Projects Radius has assembled an extensive data base of regional geological, geochemical and geophysical data covering much of Nicaragua. It has agreed to provide this to B2Gold, on an exclusive basis. If as a result of reviewing the regional data, B2Gold identifies a prospect or project for acquisition and exploration on ground that is not covered by an existing concession, Radius will apply for a concession over the area and that area will then be designated a "project area". Following the granting of a concession, B2Gold will have the option to earn a 70% interest in any such designated project area by expending US$2 million on exploration of it within 3 years from the date of the granting of the concession. Once B2Gold has spent US$2 million exploring the designated project, it will be vested with a 70% interest in the project and a joint venture will be formed About B2Gold B2Gold Corp. is a Vancouver based gold producer with mining operations in Nicaragua and a strong portfolio of mining, development and exploration assets in Colombia, Nicaragua and Northeastern Russia. | |
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