Radius Gold Closes $1.25 Million Raise for Peru Copper, Silver

Radius Gold Inc. (TSXV: RDU) said on August 28, 2026 that it closed a non-brokered private placement of 10,400,000 units at $0.12 per unit for gross proceeds of $1,248,000, with proceeds earmarked for exploration at its Tierra Roja copper and Jonco silver projects in Peru.

Radius Gold Inc. (TSXV: RDU) has closed the non-brokered private placement it flagged earlier, issuing 10,400,000 units at $0.12 apiece for gross proceeds of $1,248,000. The Vancouver-based explorer said the money is destined for field work at two early-stage assets in Peru — the Tierra Roja copper project and the Jonco silver project — plus general working capital.

Each unit bundles one common share with one full warrant, exercisable at $0.20 for one year from closing. That is the structure junior explorers reach for when the equity market is grudging: pay for today's drilling with shares, and hand buyers an option that only pays off if the drilling works. The placement remains subject to final approval by the TSX Venture Exchange, and the securities carry a resale restriction until December 28, 2026 — a four-month hold that keeps the new paper off the market through the rest of the year.

What the company actually banks, and what the warrants promise later

The headline number is $1,248,000, but the company paid finder's fees on part of the financing: $23,760 in cash and 198,000 warrants on the same terms as the unit warrants. Netting the cash fee against gross proceeds leaves roughly $1,224,240 of usable cash before other closing costs — an illustrative figure derived from the two disclosed numbers rather than a reported net proceeds total.

The warrants are the more interesting line. Full warrant coverage means every share sold comes with the right to buy another, and the strike at $0.20 sits about 66.7% above the $0.12 unit price, on our own arithmetic. If every unit warrant were exercised, that would deliver a further $2,080,000; adding the 198,000 finder's warrants takes the theoretical total to about $2,119,600. Those are illustrative calculations, not guidance — warrants expire worthless if the shares never get near the strike within the one-year window.

The dilution arithmetic is straightforward in units even if the percentage is not disclosable here. The financing puts 10,400,000 new shares into the count immediately. There are 10,598,000 warrants outstanding from the deal in total, so full exercise would add up to 20,998,000 shares over the next twelve months. Existing holders are being asked to accept that in exchange for a funded field season.

Two Peru projects, one small budget

The stated use of proceeds — exploration at Tierra Roja and Jonco, and general working capital — tells you what kind of program this is. A little over a million dollars, split across a copper target and a silver target and shared with corporate overhead, does not buy a large multi-rig drill campaign. It buys the earlier steps: mapping, geochemistry, geophysics, permitting work, access agreements, and possibly a modest number of holes on whichever target is furthest advanced.

That matters for how investors should read the next twelve months. On a budget this size, the value inflection is a result, not a resource. If Tierra Roja returns copper intercepts worth following up, or Jonco produces silver grades that justify a bigger program, Radius has a story to take back to the market — and, conveniently, a warrant strike at $0.20 that would start to look reachable. If the field work is inconclusive, the company is back at the financing window with a lower share price and a weaker hand.

The commodity split is also deliberate. Copper and silver are the two metals where explorers currently get the warmest reception from generalist money, and a company with "Gold" in its name pointing a raise at a copper project and a silver project is telling you where it thinks the demand for exploration news is. The details of the closing were disclosed via INN Precious Metals.

An insider took part, which triggers the related-party plumbing

One of the placees is an insider of the company. In Canadian markets that makes the subscription a related-party transaction, which brings disclosure and exemption requirements with it rather than a prohibition. For minority holders the practical read is mixed but generally constructive: insiders buying at the same $0.12 as outside money, and accepting the same four-month resale restriction, is a cleaner signal than insiders sitting out a discounted raise.

Two procedural items are still open. Final TSX Venture Exchange approval is pending, which is routine for a closed non-brokered placement but not yet done. And the December 28, 2026 resale restriction means the shares issued this week cannot be sold into the market before then, a detail worth holding onto for anyone modelling supply on the stock into the new year.

How the shares are trading around the close

Radius Gold's U.S. over-the-counter line, RDUFF, was quoted at 0.12 as of 13:52 GMT on Friday, August 28, 2026, up 4.55% from the prior close of 0.11, with a day range of 0.11 to 0.12. That places the quote in line with the unit price of the financing — meaning buyers in the placement effectively paid the market and took the warrant as the sweetener.

The move came against a flat-to-mixed broad tape. The S&P 500 proxy SPY was at $771.84, up 0.10%; the Dow 30 proxy DIA at $536.31, up 0.20%; and the Nasdaq 100 proxy QQQ at $720.00, down 0.15%, all as of the same timestamp. A sub-nickel-move microcap explorer rarely tracks the indexes, and this one did not.

What to watch from here

Three checkpoints stand out. First, confirmation of final TSXV approval. Second, the first substantive technical news from Tierra Roja or Jonco — the item that determines whether the $0.20 warrants become an asset for the company or a footnote. Third, the calendar: the warrants run for one year from closing, and the resale hold lifts December 28, 2026. Both dates shape the supply of stock and the company's next funding decision.

Key facts

• Gross proceeds: $1,248,000 from 10,400,000 units at $0.12
• Warrant terms: One full warrant per unit at $0.20, one-year term
• RDUFF quote: 0.12, +4.55% as of 13:52 GMT, Aug 28, 2026
• Resale restriction: Securities held until December 28, 2026

Frequently asked questions

How much did Radius Gold raise and on what terms?

Radius Gold closed a non-brokered private placement of 10,400,000 units at $0.12 per unit for gross proceeds of $1,248,000. Each unit consists of one common share and one warrant allowing the purchase of an additional share at $0.20 for one year following the closing. The company paid finder's fees of $23,760 in cash and 198,000 warrants on identical terms.

Where will the money be spent?

The company said proceeds are intended to fund exploration programs at its Tierra Roja copper project and Jonco silver project, both in Peru, and for general working capital. With just over a million dollars split across two projects and corporate costs, the program is likely to emphasise early-stage field work rather than a large multi-rig drilling campaign.

How dilutive is the financing?

The placement immediately adds 10,400,000 shares. Including the 198,000 finder's warrants, there are 10,598,000 warrants outstanding from the deal, so full exercise within the one-year term would add up to about 20,998,000 shares in total. The percentage dilution depends on the existing share count, which was not disclosed in the announcement.

What does the $0.20 warrant strike imply?

The exercise price sits roughly 66.7% above the $0.12 unit price, based on those two figures. If every warrant were exercised, the company would receive about $2,119,600 more — an illustrative calculation, not guidance. Warrants only get exercised if the share price approaches or exceeds the strike before the one-year term expires.

Why does the insider participation matter?

One placee is an insider of the company, which makes the subscription a related-party transaction under Canadian rules and brings additional disclosure and exemption requirements. It is not prohibited. For outside shareholders, an insider subscribing at the same $0.12 price and accepting the same resale restriction is generally read as an alignment signal.

When can the new shares be sold?

Securities issued in the placement are subject to a resale restriction until December 28, 2026, roughly four months from the August 28, 2026 closing. That keeps the newly issued shares off the market through the remainder of the year. The placement also remains subject to final approval by the TSX Venture Exchange.

Sources

• Radius Gold Completes $1.2 Million Private Placement Financing — INN Precious Metals

Photo: Neneqo Fotógrafo · Pexels Licence — source