Radius Plans Spin Out of Yukon Assets
Published : May 27, 2011
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Keywords :   Canada | Gold | Guatemala | Market | Nicaragua |

VANCOUVER, May 27, 2011 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that the Board of Directors of the Company has unanimously approved a spin out transaction (the "Spin Out") whereby Radius will transfer all of its Yukon and Alaskan property assets and $1.0 million in cash to a new company ("Newco") in return for Newco shares and warrants, the majority of which will then be distributed to Radius shareholders by way of a plan of arrangement.  The implementation of the Spin Out is subject to, among other things, Radius shareholder approval, court approval and TSX Venture Exchange ("Exchange") approval, including Exchange approval of the listing of the common shares of Newco on the Exchange.

The objective of the Spin Out is to maximize shareholder value by allowing the market to independently value geographically separate property portfolios. The Spin Out will result in two strategically positioned companies, one focused on Latin America and the other focused on the Yukon.

Asset Split

Radius will retain ownership of all Latin American property and royalty interests, including the HB Project and geothermal licences in Guatemala, and its Nicaraguan portfolio currently under option to B2Gold Corp., plus shares owned in other companies acquired in relation to the Latin American properties.  Newco will hold all of the staked and optioned properties of Radius located in the Yukon and Alaska, including the Sixty Mile district and Rackla Belt properties, and shares owned in other companies acquired pursuant to existing Yukon option agreements.

Spin Out Terms

The Spin Out will result in Radius shareholders receiving Newco common shares and warrants based on the number of Radius shares held. Radius will retain an approximately 19.9% ownership interest in Newco.  An application will be made to have the Newco warrants listed on the Exchange and listing will be subject to meeting the Exchange listing requirements.

Radius shareholder approval will be sought at a shareholders' meeting expected to be held in the fall of 2011. An Information Circular containing full details of the Spin Out will be sent to Radius shareholders prior to the meeting.

Simon Ridgway, the Chief Executive Officer of Radius, stated:  "The management and Board of Directors of Radius believe that the proposed separation of assets should facilitate independent financing and exploration strategies, resulting in an excellent opportunity for shareholders to maximize the value of their Radius holdings."

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 a number of 100% owned exploration plays, including the HB property in Guatemala and several properties in the Rackla Belt and Sixty Mile placer gold district in the Yukon.

ON BEHALF OF THE BOARD
     "Simon Ridgway"
Simon Ridgway, President & CEO

Investor relations:  Ralph Rushton / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 79.9-million

Forward-Looking Statement

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation, statements about the expected benefits of the proposed Spin Out, the completion of the Spin Out, the receipt of shareholder and regulatory approvals for the Spin Out and statements regarding Newco, are forward looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the receipt of the necessary shareholder and regulatory approvals for the Spin Out, risks associated with mineral exploration, fluctuations in commodity price, economic conditions and title matters. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

For further information:

on Radius and its properties, please call toll free 1-888-627-9378 or visit our new web site (www.radiusgold.com)

Data and Statistics for these countries : Canada | Guatemala | Nicaragua | All
Gold and Silver Prices for these countries : Canada | Guatemala | Nicaragua | All

Radius Gold Inc.

DEVELOPMENT STAGE
CODE : RDU.V
ISIN : CA7504681007
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Radius Gold is a gold exploration company based in Canada.

Radius Gold holds various exploration projects in Guatemala, in Nicaragua and in Peru.

Its main asset in development is TAMBOR in Guatemala and its main exploration properties are EL PAVON, TREBOL and LA PATRIOTA in Nicaragua, BANDERAS and HB in Guatemala, 60 MILE in Canada, TLACOLULA in Mexico and RUBI PROJECT in Peru.

Radius Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 17.3 millions as of today (US$ 13.9 millions, € 12.1 millions).

Its stock quote reached its highest recent level on November 21, 2003 at CA$ 2.03, and its lowest recent point on December 05, 2008 at CA$ 0.04.

Radius Gold has 86 675 617 shares outstanding.

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Nominations of Radius Gold Inc.
5/8/2007Appoints New VP Exploration
Project news of Radius Gold Inc.
8/31/2012sells Interest in Guatemala Gold Property
8/14/2012Radius Gold closes sale of Nicaraguan Projects to B2Gold
5/9/2011(Banderas)Provides Update on Eastern Guatemala Gold/Silver District
3/19/2008(San Pedro) Options Its San Pedro Gold Project to Vannessa Ventures
2/28/2008(Estrella De Oro) Provides an Update on its Nicaragua Exploration Programs
2/11/2008(Tambor)Metallurgical Tests on Tambor Sample Achieve Gold Recoveries...
10/22/2007(Tambor)Tambor Exploration Adit Returns Additional Intercept of 65.6...
9/6/2007(Tambor)Tambor Exploration Adit Returns 74.5g/t Gold over 3.4m
7/18/2007Exploration Adit at Radius's Tambor Gold Project Intersects ...
3/27/2007(Tambor)Begins Underground Exploration at Tambor
Corporate news of Radius Gold Inc.
6/14/2016Radius Gold Provides Property and Investments Update
5/11/2016Radius Gold Comments on Media Reports of Temporary Suspensio...
4/28/2016Radius Gold Announces Intention to Terminate SEC Reporting O...
2/1/2016Radius Gold Provides Update on Operations
4/23/2015Obtains Shareholder Approval of Proposed Change of Business
4/16/2015Focus Completes Sale of Royalty on Bayovar 12 Phosphate Proj...
4/16/2015Radius Completes Purchase of Royalty on Bayovar 12 Phosphate...
3/26/2015Early Warning Report
3/10/2015Focus Accelerates Purchase of 70% of JPQ, Owners of Bayovar ...
3/10/2015Radius Gold Acquires Option on Margarita Silver Property, Me...
2/25/2015Radius Gold provides update on proposed Change of Business
1/7/2015Radius Gold Proposes Change of Business to Investment Issuer
1/7/2015IIROC Trading Halt - RDU
11/6/2014Early Warning Report
9/2/2014Radius Commences Drilling at Blue Hill Gold Project, Idaho
7/14/2014Radius Options Blue Hill Gold Project, Idaho From Otis Gold ...
10/8/2013Begins Drilling at Santa Brigida Silver-Gold Project, Mexico
5/24/2012Extends Warrants
12/3/2011Radius Gold Announces Shareholder Approval for Spin-Out
7/13/2011Defines Anomalous Au-Hg-Sb-As-Tl in Soil/Stream Sediment Sam...
7/7/2011Completes $3.66 Million Private Placement
6/6/2011Drilling has commenced at Radius' Sixty Mile Project, Yukon ...
5/27/2011Plans Spin Out of Yukon Assets
5/16/2011Samples 58.26 g/t Au and 1,937 g/t Ag over 5.1 m at Pino Zon...
4/12/2011Exploration Underway at Radius' Sixty Mile Project, Yukon Te...
11/1/2010Exercises Option on Sixty Mile Claims, Yukon
5/9/2008Starts Drilling in Nicaragua
4/7/2008 Provides an Exploration Update
11/14/2007 Acquires Sediment-Hosted Gold Project in Peru
10/17/2007Update on Nicaragua Exploration Programs
9/25/2007Commences Exploration at the Rubi gold - silver Property, Pe...
8/30/2007President, Simon Ridgway, Interviewed by WallSt.net
8/28/2007signs option to acquire the Rubi gold - silver property, Per...
5/29/2007announces initial sampling results from its Trébol property,...
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