Radius Gold executes formal Option Agreement for 100% of the Jonco Silver Project, Peru
Radius formalized a silver option on its Jonco deposit, advancing its Peru portfolio expansion into the execution phase.
Radius Gold Inc. has executed a formal Option Agreement with Minera Joncijirca S.A.C. to acquire a 100% interest in the Jonco Silver Project in central Peru. This transaction formalizes a previously announced binding Letter of Intent from February 2026.
The earn-in structure requires staged cash payments totaling US$4.15 million, US$7.0 million in exploration expenditures, and the issuance of 250,000 common shares over a five-year period. Initial payments of US$50,000 and 50,000 shares have already been issued, with the shares subject to a regulatory resale restriction until November 10, 2026.
The vendor retains a 2% Net Smelter Return (NSR) royalty, reducible to 1.5% via a US$1.0 million payment. An existing 1.25% NSR held by Compañía de Minas Buenaventura S.A.A. remains on two concessions. The project covers 3,830 hectares and hosts historic drill intercepts indicating a large-scale polymetallic silver-gold-lead-zinc system.
Radius Gold Inc. (RDU) executed a formal agreement, a procedural step following the February 2026 announcement. This action does not introduce new financial terms, unexpected milestones, or material changes to the asset's valuation. The market was already aware of the option structure, payment schedule, and royalty terms, making the news incremental and expected.
The primary impact is operational: Radius can now proceed with surface exploration and target refinement while awaiting drilling permits. No immediate dilution beyond the already-announced 250,000 shares is triggered, and the initial 50,000 shares are restricted until November 2026.
Radius Gold Inc. (RDU) is a mineral exploration and development company focused on gold, silver, copper, and base metals across the Americas. The company holds a 100% interest in the Tierra Roja Copper Project in Peru, which is in an advanced permitting stage with environmental and archaeological permits secured. The project is awaiting final surface access authorization to commence drilling.
In Peru, Radius also holds an option for 100% ownership of the Jonco Silver Project, covering 3,830 hectares. The property hosts a large-scale polymetallic Ag-Au-Pb-Zn system associated with dacite flow domes and diatreme breccias, with historic drilling showing high-grade silver intercepts.
In Mexico, Radius owns 35% of the Amalia Gold-Silver Project. Exploration at the site was halted by partner Pan American Silver in 2022, and Radius is currently negotiating to resume work. Meanwhile, the company owns 60% of the Holly Gold-Silver Project in Guatemala, which holds an inferred resource of 1.32 Mt @ 6.46 g/t Au and 256 g/t Ag. A mining permit has been granted for the property.