| ||Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU): Ralph Rushton, Director of Radius Gold, is pleased to announce that the Company has optioned its portfolio of geothermal concessions in Guatemala to a private geothermal power company, Molten Power Corp. ("Molten"). Molten will be the operator of the geothermal exploration project.|
Simon Ridgway, the President of Radius, commented: "We're delighted to be working with Molten on the exploration and development of our geothermal concessions. With the tremendous interest in carbon-neutral, renewable energy, I'm pleased that our exploration programs may be able to contribute to the development of clean energy sources in Central America."
Under the terms of the option, and subject to satisfactory technical and legal due diligence by Molten, Molten shall have the exclusive right to earn a 100% interest in the concessions from Radius by issuing 2 million shares in staged tranches according to the following schedule:
|On signing the definitive option agreement: ||400,000 shares
|On 1st anniversary of signing the definitive agreement date: ||500,000 shares
|On 2nd anniversary of signing the definitive agreement date: ||500,000 shares
|On 3rd anniversary of signing the definitive agreement date: ||600,000 shares
| Cumulative Total ||2,000,000 shares
Molten shall also issue to Radius warrants to purchase up to 1,000,000 shares exercisable for a period of five years from the date of the definitive agreement at a price of $3.00 per share.
Radius also retains a two percent (2%) royalty of the Gross Revenue for the sale of geothermal electric power from the first power generation facility built on each geothermal licence. Molten may, at its discretion, purchase at any time prior to the commencement of the commercial operation date one half (1/2) of the 2% royalty from any geothermal license for the sum of CAD$30,000/MW nameplate capacity of the first power generation facility built on each geothermal licence. Any expansion of the nameplate capacity on any of the licenses is not subject to royalty payments.
About Molten Power Corp
Molten is a Vancouver based geothermal power development company. Molten's mission is to create shareholder value through the acquisition, exploration, development and operation of geothermal power projects worldwide. Molten's current project areas of interest include the western USA, Philippines, Guatemala, western Turkey, Indonesia, Eastern Africa and Hawaii. For more information about Molten Power, please contact Mr. Gary R. Thompson at (403) 870-1166 or firstname.lastname@example.org.
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 two 100% owned exploration plays, the HB property in Guatemala and the Sixty Mile property in the Yukon Territory.
For further information on Radius and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).
ON BEHALF OF THE BOARD
Ralph Rushton, Director
Investor relations: Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 73.5-million
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.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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