Radius Gold Inc. (RDU) has formalized a definitive option agreement to acquire 100% of the Jonco Silver Project in central Peru. This agreement follows a binding letter of intent announced in February 2026. By executing this contract with Minera Joncijirca S.A.C., the company secures the rights to advance the 3,830-hectare project through a five-year earn-in period.

The transaction structure requires Radius to make total cash payments of US$4.15 million, fund US$7.0 million in exploration expenditures, and issue 250,000 common shares on a staged schedule. The TSX Venture Exchange has already accepted the agreement, and Radius has issued an initial 50,000 shares alongside a US$50,000 cash payment to the vendor. Upon the exercise of the option, the vendor will retain a 2% net smelter return royalty, though the company can reduce this by 0.5% through a one-time US$1.0 million payment.

Jonco hosts a large-scale polymetallic silver-gold-lead-zinc system associated with dacite flow domes and diatreme breccias. The project features multiple drill and geophysical targets with a history of 3,195 meters of drilling. These historical results offer a foundation for the company as it moves to refine targets. The acquisition fits the broader corporate strategy of identifying polymetallic targets throughout the Americas and securing them via staged options rather than immediate, large-scale direct purchases. This approach allows the team to utilize existing geological data to accelerate exploration and prioritize development areas.

Moving forward, the primary catalysts for the project involve the commencement of surface exploration and detailed target refinement. These efforts are expected to support the company’s ongoing focus on high-quality exploration opportunities in the region. The project is currently subject to a 1.25% royalty held by Compañía de Minas Buenaventura S.A.A. on two of the seven total concessions.

Shares of Radius Gold are currently trading at $0.155, representing a 3.33% increase on the day.

Read the full announcement: Radius Gold executes formal Option Agreement for 100% of the Jonco Silver Project, Peru