Radius Gold Inc. Sets Spin Out Ratio, Appoints New Director
27.07.2011 | CNW
VANCOUVER, July 27, 2011 /CNW/ - Radius Gold Inc. (TSXV: RDU) announces that its Board of Directors has determined that the ratio of securities to be issued under the proposed Spin Out transaction announced on May 27, 2011 will be one common share and one full warrant in Newco for every three Radius shares held. Each Newco warrant will entitle the holder to purchase one common share of Newco at $0.50 for a period of 18 months after listing of Newco. Following completion of the Spin Out, Radius will hold 19.9% of the issued shares and warrants of Newco.It is proposed that Newco will hold all of Radius's existing Yukon projects and $1.0-million in cash. The implementation of the Spin Out is subject to, among other things, Radius shareholder approval, court approval and TSX Venture Exchange approval. The shareholders' meeting will be held in October 2011.
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.
William Katzin Appointed to Board of Directors
The Board has also unanimously approved the appointment of Mr. William Katzin as a Director of Radius. Mr. Katzin is a graduate of the University of Cape Town, South Africa with a Bachelor of Commerce and Law degree. He is a member of the Institute of Chartered Accountants of British Columbia. He has been a partner in private practice with a Vancouver firm of Chartered Accountants since 1986 and has experience working with resource and exploration companies.
The Company has granted an incentive stock option to Mr. Katzin to purchase up to 150,000 common shares exercisable for ten years at a price of $0.81 per share.
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: 86.5-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.
For further information:
on Radius and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com)