Volcanic Gold Mines Inc. and Radius Gold Inc. announced that they have modified the Option Agreement signed in 2020 to include the Motagua Norte project in exchange for the Banderas project. 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 and Motagua Norte projects if Volcanic spends USD 7 million on exploration of the properties within 48 months from March 2021, being the date drilling permits were granted for the Holly project.

Volcanic has invested USD 4.29 million in exploration on Holly, and under the modified Option, a minimum of USD 2.0 million will be directed at the exploration and drilling of Motagua Norte. Volcanic's geological team spent considerable time and resources evaluating Radius's 340,000 ha regional applications in eastern Guatemala and identified the Motagua Norte prospect as high grade orogenic gold systems 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, Radius is a "non-arm's length party" to Volcanic 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.