Jun. 1, 2011 (Canada NewsWire Group) --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, June 1, 2011 /CNW/ - Radius Gold Inc. (TSXV: RDU) is pleased to announce that the Company has negotiated, subject to stock exchange approval, a non-brokered private placement of up to 5.0 million units at $0.60 per unit, for gross proceeds of up to $3.0 million. Each unit will consist of one common share and one-half of a warrant, each whole warrant entitling the holder to purchase one additional common share at $0.75 exercisable for one year from closing.
The Company has agreed to allocate a portion of the financing to subscribers found by Axemen Resource Capital Ltd., an Exempt Market Dealer, and may agree to similar allocations to other exempt market or investment dealers. The Company will pay finder's fees equal to 5% of subscription amounts found, payable in cash or units, plus issue finder's warrants in an amount equal to 5% of units purchased, with each such finder's warrant to be exercisable into one common share of the Company at a price of $0.75 for one year from closing.
The net proceeds of the financing will be used for exploration of the Company's properties in Central America, and for general working capital purposes.
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
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available
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.
on Radius and its properties, please call toll free 1-888-627-9378 or visit our new web site (www.radiusgold.com).