Medgold Resources Corp. announced that it has entered into a strategic alliance agreement with Radius Gold Inc. whereby Radius will have the right to option one of Medgold's properties located in Portugal. As well, Radius has agreed to participate in Medgold's current private placement financing as to $500,000.

For a period of 18 months, Radius may select one of Medgold's Portuguese properties in which Radius will be granted the option to earn a 51% interest by spending $3.0 million on exploration and development of that property. Upon exercise of the option, a joint venture will be formed between Medgold and Radius to further develop the property.