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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:
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On
signing the definitive option agreement:
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400,000
shares
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On 1st
anniversary of signing the definitive agreement date:
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500,000
shares
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On 2nd
anniversary of signing the definitive agreement date:
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500,000
shares
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On 3rd
anniversary of signing the definitive agreement date:
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600,000
shares
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Cumulative
Total
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2,000,000 shares
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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.
Royalty
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 gary.thompson@moltenpower.com.
About Radius
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"
Ralph Rushton, Director
Investor relations: Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 73.5-million
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