VANCOUVER, Nov. 3, 2011 /PRNewswire/ - Radius Gold Inc.
(TSX-V: RDU) is pleased to announce that it has received
conditional approval from the TSX Venture Exchange for the planned
spin out of its Yukon assets into
a new company, which will be called Rackla Metals Inc. The
implementation of the spin out is subject to Radius shareholder
approval, court approval and Rackla Metals Inc. completing the
listing requirements of the TSX-V.
The shareholders' meeting of Radius to approve
this arrangement will be held on December
2nd, 2011, and a management proxy circular containing full
details of the spin out will be sent to the shareholders next
week.
Simon Ridgway,
the Chief Executive Officer of Radius, commented, "The management
and board of directors of Radius believe that the proposed spin out
will maximize the value to our shareholders of the geographically
diverse assets within Radius. Rackla Metals will focus on Canadian
exploration, while Radius will return to its roots as a Central
American play."
Spin Out Terms
The terms of the spin out provide that one
common share and one warrant in Rackla will be issued for every
three Radius shares held. Each Rackla warrant will entitle
the holder to purchase one common share of Rackla at $0.30 for a period of 18 months after listing of
Rackla. An application will be made to have the Rackla
warrants listed for trading on the TSX-V. Following
completion of the spin out, Radius will hold a 19.9% ownership
interest in Rackla Metals Inc.
Asset Split
Radius will retain ownership of all Latin
American property and royalty interests, including the HB project,
the Tambor Project and the geothermal licences in Guatemala, and also the Nicaraguan portfolio
currently under option to B2Gold Corp. It will also hold the
Mexican properties under option to Fortuna Silver Mines Inc. plus
shares owned in other listed companies acquired in relation to
various Latin American properties. Rackla Metals Inc. will hold all
of the staked and optioned properties of Radius located in the
Yukon Territory including the
Sixty Mile district, the Rackla belt properties, the Ten Mile
property and various equity interests in other public companies
previously acquired by Radius pursuant to existing Yukon option agreements.
About Radius
Radius has been exploring for gold in
Latin America for nearly a
decade. It has assembled interests in a portfolio of
promising gold projects throughout the region, including carried
stakes in two small-scale developing gold projects, one in
Guatemala being developed by
Dan Kappes of Kappes Cassiday and
one in Nicaragua, and a number of
100% owned exploration plays, including the HB property in
Guatemala. The Company also
holds a large land position in the Yukon
Territory which is the subject of the proposed spin out.
ON BEHALF OF THE BOARD
"Ralph Rushton"
Ralph Rushton,
Director & Vice-President, Corporate Development
Investor relations: Jaclyn
Ruptash / Ralph Rushton
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.
