Radius Gold Secures NSR Royalty Agreement for Tlacolula Concession

Radius Gold ( (TSE:RDU) ) just unveiled an announcement.

Radius Gold Inc. has entered into a net smelter returns (NSR) royalty guarantee agreement with JRC Ingenieria y Construcción SAC for the Tlacolula mineral concession in Mexico, which is near the San José gold-silver mine. This agreement grants Radius a 2.0% NSR on future metal production from the property, with a buydown provision available. The Tlacolula property, known for its high-grade epithermal gold-silver mineralized system, presents a compelling exploration target. This strategic move enhances Radius Gold’s position in the mining sector and potentially increases its revenue from future mining operations.

Spark’s Take on TSE:RDU Stock

According to Spark, TipRanks’ AI Analyst, TSE:RDU is a Neutral.

Radius Gold’s overall stock score is mainly driven by its challenging financial situation with no revenue and persistent negative cash flows, reflecting high operational risk. Technical analysis shows some positive momentum, but the valuation remains a concern due to negative earnings, leading to an overall cautious view.

To see Spark’s full report on TSE:RDU stock, click here.

More about Radius Gold

Radius Gold Inc. is a company operating in the mining industry, focusing on exploration and development of mineral properties. The company holds a portfolio of net smelter return (NSR) royalties and resource projects with significant potential, including interests in gold and silver mining projects in Mexico, Guatemala, and Peru.

Average Trading Volume: 157,192

Technical Sentiment Signal: Sell

Current Market Cap: C$13.43M

Learn more about RDU stock on TipRanks’ Stock Analysis page.