In September 2023, a new exploration funding commitment from Volcanic Gold to earn 60% interest in Motagua Norte via Option Agreement and granting of Cirilo 1 exploration license
On September 18, 2022, Volcanic Gold Mines and Radius Gold announced that they modified the Option Agreement signed in 2020 (see Volcanic Gold News Release September 3, 2020) to include Radius’s Motagua Norte project in exchange for the Banderas project as Volcanic has been unable to access the Banderas property due to social issues. The work that the Volcanic team has completed to date has demonstrated that Motagua Norte is a high-grade orogenic gold system with compelling drill targets.
- Under the modified Option Agreement, Volcanic has an option to earn a 60% interest in the Holly project and the Motagua Norte projects by spending US$7M on exploration on the properties within 48 months from March 2021, that being the date drilling permits were granted for the Holly project.
- To date Volcanic has invested US$4.5 in exploration on Holly and Motagua properties, and a further US$2.5 will need to be spend for the earn-in. Under the modified Option, a minimum of $2.0M of that will be directed at the exploration and drilling of Motagua Norte properties.
- Volcanic’s geological team spent considerable time and resources evaluating Radius’s regional applications in eastern Guatemala and has identified the Motagua Norte prospect as a high grade orogenic gold system with compelling drill targets.
The modified Option Agreement is subject to approval by the TSX Venture Exchange. As Volcanic and Radius have a common director and two common officers, Volcanic is a “non-arm’s length party” to Radius within the meaning of TSX Venture Exchange Policy 5.9. The modified option agreement is not, however, a “related party transaction” as defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore the requirements of the Exchange’s Policy 5.9 and MI 61-101 do not apply. For more information, please see News Release: Volcanic Gold Mines and Radius Gold announce modification to Option Agreement to include the Motagua Norte project, September 18, 2023.
Motagua Norte project:
86 km² land position
- 13.5 km² Cirilo 1 exploration license granted, Sept 2023.
- 72.68 km² under application for exploration licences.
- Over 1000 rock chip sample proprietary geochemical data base.
- Excellent access to infrastructure.
- Sparsely populated semi-arid zone
About Motagua Norte
- Multiple vein-sets along 25 km trend in a Schistose belt associated with regional structures.
- High grade float and sub-crop samples to 692 g/t gold and 298 g/t silver.
- Large high-grade surface gold-silver footprint –
- several drill targets defined.