Vancouver — A wholly owned subsidiary of Gold Fields (GOLD-Q) will add $2 million to Radius Explorations‘ (RDU-V) coffers by way of a non-brokered private placement.
Gold Fields will purchase 1,904,762 units of Radius for $1.05 each. A unit will consist of one common share and one share purchase warrant exercisable at $1.25 for one year. The closing price of Radius shares on May 31 was $0.95.
Proceeds from the financing will be used to fund exploration work on the junior’s Guatemalan projects along the Motagua gold belt. Radius is cashing up as it prepares to begin a first phase of drilling on its wholly owned Tambor gold project.
Radius acquired the right to a 100% interest in the 66-sq.-km property in late 1999. Since then, the company has conducted regional geochemical sampling and follow-up trenching in an area that has seen intense structural deformation but little historical gold exploration.
The junior has outlined at least five shear-hosted, low-angle oxide gold zones in an area measuring 6 km by 2.5 km. Three of these, the Sastra, Lupita-Chorro and Bridge prospects, will be tested with an initial 6-to-8-hole, 2,500-metre drill program.
Radius has also applied for concessions covering more than 200 km of strike length adjacent to the Motagua fault. The fault is a major crustal shear zone that bisects central Guatemala, separating a younger volcanic belt to the south from older basement rocks in the north.
As a result of this investment, Gold Fields will hold a 12.5% interest in Radius and will be entitled to appoint one member to the company’s board. Gold Fields is a major gold-mining company with operations in South Africa and Ghana. It produces 4 million oz. gold per year from 70 million oz. of reserves.
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