VANCOUVER, May 31 /PRNewswire-FirstCall/ -- Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has increased the size of the previously announced non-brokered private placement from 10 million units to a maximum of 13 million units at $0.35 per unit, for gross proceeds of just over $4.5 million. As previously disclosed 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 $0.50 exercisable for two years.
If at any time from four months and one day after the closing of the financing, the volume-weighted average trading price of the Company's common shares on the TSX Venture Exchange over a period of 20 consecutive trading days exceeds $0.75, the Company may, within five days after such an event, provide notice to the warrant holders that the warrants will expire early, namely, on the date which is 30 calendar days after the date of such notice to the warrant holders.
A finder's fee may be paid on a portion or all of the placement. The finder's fee will consist of 5% cash or shares, and 5% warrants, each such warrant entitling the holder to purchase one common share at $0.55 exercisable for one year.
The financing has been increased due to a significant expansion in the Company's land holdings in Guatemala. Simon Ridgway, the President of Radius said: "We hold a very large land position in a very prospective belt of rocks. We need people on the ground and we need drills turning. This financing will allow us to do both, and do both aggressively"
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 two 100% owned exploration plays, the HB property in Guatemala and Sixty Mile property in the Yukon territory - with drilling campaigns for 2010 in the planning stages.
ON BEHALF OF THE BOARD "Ralph Rushton" Ralph Rushton, Director Investor relations: Ralph Rushton / Erin Ostrom Symbol: TSXV-RDU; OTCBB-RDUFF Shares Issued: 53.6-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Radius Gold Inc.
CONTACT: on Radius and its properties, please call toll free
1-888-627-9378 or visit our web site (http://www.radiusgold.com/)
