Radius Gold Inc. (TSXV: RDU) has announced a corporate update regarding the status of its core gold-silver assets while simultaneously launching a capital raise to fund active exploration programs in Peru. The company is proposing a non-brokered private placement of up to 10 million units at a price of $0.12 per unit. Each unit will consist of one common share and a warrant, which allows holders to acquire an additional share at $0.20 for a period of 12 months. This financing aims to generate up to $1.2 million in gross proceeds to support upcoming work at the Tierra Roja copper project and the Jonco silver project.

The update provided clarity on the status of the Amalia project in Mexico and the Holly project in Guatemala. At Amalia, where Radius holds a 35% interest, the company notes that no material work has occurred since late 2022. While Pan American Silver previously conducted extensive drilling, which successfully identified multiple high-grade discovery zones, the project remains at a standstill as the company engages in ongoing discussions with its partner to determine the best path forward for the asset.

The Holly project in Guatemala, in which Radius maintains a 40% joint venture interest, faces distinct operational hurdles. Although the site hosts an Inferred Mineral Resource of 1.32 million tonnes at 6.46 g/t gold and 256 g/t silver, the project is currently impacted by a loss of social license. Despite earlier high-grade drill results and efforts by partner Volcanic Gold Mines to engage with the local community, the company acknowledges that the loss of this license has stalled development. Both partners remain committed to dialogue with local stakeholders to address these concerns and eventually unlock the value of this epithermal system.

Moving forward, the company is prioritizing its Peruvian assets while keeping options open for its existing portfolio.

"Management remains committed to evaluating all strategic options to realize shareholder value from its entire portfolio, including monetizing some of the above assets."

— Simon Ridgway, CEO and Chairman

Completion of the financing is currently subject to approval from the TSX Venture Exchange.

Read the full announcement: Radius Gold Provides Portfolio Update on High-Grade Amalia and Holly Gold-Silver Projects and Announces Financing