Motagua Norte- Guatemala
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On September 18, 2022, Radius Gold and Volcanic Gold Mines announced that they modified the Option Agreement signed in 2020 (see Radius News Release September 3, 2020) to include Radius’s Motagua Norte project in exchange for the Banderas project. The work that the Volcanic team has completed to date has demonstrated that Motagua Norte is a high-grade orogenic gold system with compelling drill targets.
Highlights
- Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly and Motagua Norte projects if Volcanic spends US$7M on exploration of the properties within 48 months from March 2021, being the date drilling permits were granted for the Holly project.
- Volcanic has invested ~US$4.29M in exploration on Holly, and under the modified Option, a minimum of $2.0M will be directed at the exploration and drilling of Motagua Norte.
- Volcanic’s geological team spent considerable time and resources evaluating Radius’s 340,000 ha regional applications in eastern Guatemala and identified the Motagua Norte prospect as high grade orogenic gold system with compelling drill targets.
The modified Option Agreement is subject to approval by the TSX Venture Exchange. As Radius and Volcanic have a common director and two common officers, Volcanic is a “non-arm’s length party” to Radius within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not, however, a “related party transaction” as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore the requirements of the Exchange’s Policy 5.9 and MI 61-101 do not apply. For more information, please see News Release: Radius Gold and Volcanic Gold Mines announce modification to Option Agreement to include the Motagua Norte project, September 18, 2023.
