Vista Gold Corp. Announces Agreements to Purchase Properties Adjacent to the Guadalupe de los Reyes Project in Mexico to Consolidate Vista's Land Position and Increase Vista's Estimated Gold and Silver Resources
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to announce that it and Grandcru Resources Corporation have signed an agreement for Vista to acquire Grandcru's interest in two gold/silver mineral properties adjacent to Vista's Guadalupe de los Reyes project in Sinaloa, Mexico, subject to receipt of all necessary regulatory and other approvals.
Under the terms of the agreement, Vista will (a) pay Grandcru US$425,000 less any amounts payable in back taxes on the mining concessions, and pay a private investment group known as the San Miguel Group US$75,000, and (b) issue to Grandcru and the San Miguel Group, in aggregate, common shares of Vista with a value of US$1,000,000 on closing. In addition, Vista has reached agreement with Goldcorp Inc. and its Mexican subsidiary, Desarrollos Mineros San Luis, S.A. de C.V. (together, "San Luis"), and with the San Miguel Group to complete the acquisition of their respective interests at the same time as the closing occurs with Grandcru. Vista will pay a 2% net smelter returns royalty ("NSR") on all minerals produced payable to the San Miguel Group on the mining concessions known as the San Miguel Concessions. Vista will pay San Luis a 1% NSR on mining concessions known as the San Luis Concessions and the San Miguel Concessions, and 2% to 3% NSR depending on the gold price on Vista's mining concessions known as the Gaitan Concessions. At gold prices below US$499.99 per ounce, the royalty payable to San Luis on the Gaitan Concessions will be 2% and at or above US$500 per ounce, the royalty will be 3%. Certain of the San Luis Concessions are subject to a pre-existing underlying royalty of 3% NSR payable to Sanluis Corporacion, S.A. de C.V.
As previously announced by Vista on September 29, 2003, a resource study on the portion of the Guadalupe de los Reyes property held by Vista was completed on July 17, 2003, by Pincock, Allen & Holt Ltd., of Lakewood, Colorado, an independent consulting firm, in accordance with Canadian National Instrument 43-101 guidelines under the supervision of Leonel Lopez and Mark G. Stevens, independent qualified persons, and titled "Technical Report for the Guadalupe de Los Reyes Gold-Silver Project, State of Sinaloa, Western Mexico" and filed on SEDAR under Vista Gold Corp. The results of the study indicated that at a cutoff grade of 0.5 g/t gold, the portion of the property held by Vista contains 6.3 million tonnes grading 1.36 g/t gold and 23.0 g/t silver for an estimated 277,600 ounces of gold and 4.7 million ounces of silver in the indicated resources(1) category, and 3.8 million tonnes grading 2.01 g/t gold and 65.6 g/t silver for an estimated 247,850 ounces of gold and 8.1 million ounces of silver in the inferred resources(2) category.
A resource analysis on the portion of the Guadalupe de los Reyes property that Grandcru holds an interest in was completed for Grandcru on April 11, 2005, by Pincock Allen & Holt Ltd. of Lakewood, Colorado, in accordance with Canadian National Instrument 43-101 guidelines under the supervision of Leonel Lopez and Mark G. Stevens, independent qualified persons, and titled "Technical Report, Los Reyes, Gold-Silver Project, State of Sinaloa, Western Mexico" and filed on SEDAR under Grandcru Resources Corporation. The results of the study indicated that at a cutoff grade of 0.5 g/t gold, the portion of the property covered by Grandcru's option contains 3.7 million tonnes grading 1.73 g/t gold and 30.4 g/t silver for an estimated 207,000 ounces of gold and 3.6 million ounces of silver in the indicated resources(1) category, and 1.0 million tonnes grading 2.05 g/t gold and 39.4 g/t silver for an estimated 68,000 ounces of gold and 1.3 million ounces of silver in the inferred resources(2) category.
Based on the two studies noted above, at a cutoff grade of 0.5 g/t gold, the combined gold and silver resources, which are the total estimated gold and silver resources in the Guadalupe de los Reyes district, are as shown in the following table:
Guadalupe de los Reyes Project Mineral Resource Estimates
(Resource estimates have been adjusted to reflect material removed from
old underground workings)
Gold Contained Silver Contained
Metric Grade Gold Grade Silver
Tonnes (g/t) Ounces (g/t) Ounces
Indicated(1) 10,061,000 1.50 484,600 25.7 8,300,000
Inferred (2) 4,876,000 2.02 315,850 60.0 9,400,000
1) Cautionary Note to U.S. Investors concerning estimates of Indicated
Resources: This document uses the term "indicated resources". We advise
U.S. investors that while this term is recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not
recognize it. U.S. investors are cautioned not to assume that any part or
all of mineral deposits in this category will ever be converted into
reserves.
2) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This document uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission does not
recognize it. "Inferred resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the
basis of a feasibility study or other economic study. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally minable.
The consolidation of the mineral rights in this historic mining district will allow Vista to conduct a comprehensive exploration and development program. The resource estimates demonstrate potentially economic gold and silver grades and expansion of the resource base could make the project attractive to put into production.
The Guadalupe de los Reyes project is situated in the western side of the Sierra Madre Occidental Province, a late Cretaceous to Tertiary age volcanic sequence that extends for hundreds of kilometers. This geologic province encloses a number of historically productive gold and silver deposits including Guadalupe de los Reyes and others, such as Hostotipaquillo, Bolanos, Guanajuato, La Cienega, Tayoltita, Topia, Batopilas, and Dolores.
Mineralization in the project area has been found in nine target areas along a series of nine northwesterly trending structural zones in andesites of Tertiary age of the Lower Volcanic Sequence.
Mineralization occurs in westward dipping structural zones that range from a few meters to several tens of meters in thickness. Some of these targets have bulk tonnage potential, which may be amenable to open-pit mining, such as El Zapote, San Miguel, Guadalupe Mine (Laija and West), Tahonitas, Noche Buena, and El Orito zones. The El Zapote zone has received the most extensive exploration to date.
Vista plans to explore the property in a staged approach beginning with a compilation and review of the several data sets followed by geologic mapping, sampling and where appropriate, geophysical coverage of the whole property package. Vista's data review is intended to identify potential extensions of known mineralization and structural zones that are targets for new areas of mineralization. Vista then will evaluate and rank mineralized zones and prospective areas to define drill targets.
Fred Earnest, Vista's President and COO, stated, "This acquisition marks an intensification of Vista's efforts in Mexico. As we build the Paredones Amarillos project, planned for completion by the last quarter 2009, it makes sense for us to undertake further developments in Mexico. The consolidation of the mineral properties at Guadalupe de los Reyes, while adding to Vista's estimated gold and silver resource base, more importantly results in a land package that we believe will generate significant exploration opportunities and also is potentially attractive for development of the project into an operating mine."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the expectation that higher gold prices would significantly increase their value. Vista has recently completed a preliminary feasibility study on the Paredones Amarillos project in Mexico that indicated positive results at gold prices lower than those now prevailing. Vista plans to confirm these results with definitive feasibility studies in 2008. Vista is undertaking programs to advance the Paredones Amarillos project, including the purchase of long delivery equipment items, so that construction can begin during the second half of 2009. The results of a preliminary assessment completed in 2007 on the Mt. Todd project in Australia were encouraging and additional technical studies are underway with a definitive feasibility study planned for completion by the end of 2008. Vista's other holdings include the Guadalupe de los Reyes project in Mexico, Yellow Pine project in Idaho, Awak Mas project in Indonesia, Long Valley project in California, and Amayapampa project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934 and forward-looking information within the meaning of applicable Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as completion of the pending acquisition as announced herein of the gold/silver mineral properties in the Guadalupe de los Reyes area, estimates of gold and silver mineralization at the Guadalupe de los Reyes property, potential for economic gold and silver grades, potential to add to gold and silver resource estimates at the property, potential for open-pit mining at certain targets in the property, Vista's plans for exploration of the property including compilation and review of data and identification of drill targets, exploration and development opportunities at the Guadalupe de los Reyes property, potential extensions of known mineralization and identification of structural zones that are targets for new mineralization at the property, potential for development of an operating mine at the property, plans for development of the Paredones Amarillos property including anticipated time for commencement of production, schedule for anticipated production decision at the Mt. Todd property, results of preliminary economic assessments and preliminary feasibility studies, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; uncertainty of being able to raise capital on favorable terms or at all; and external risks relating to the economy and credit markets in general; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Luzon Minerals Ltd. Elects Not to Exercise Option to Purchase Amayapampa Gold Project in Bolivia
Vista Gold Corp. (TSX & Amex: VGZ) announced today that Luzon Minerals Ltd. has decided not to exercise its option to acquire from Vista the Amayapampa Gold Project in Bolivia, citing its inability to advance the project with its current financial and personnel resources. Luzon had an option to acquire Vista's interest in the project from Vista pursuant to an option agreement dated March 13, 2007 (see Vista's press release dated March 14, 2007). Vista and Luzon have entered into an agreement regarding the termination of the option agreement and the terms on which Luzon's outstanding obligations with respect to the project will be satisfied.
Mike Richings, Vista's Executive Chairman and CEO, commented on the news: "We have been concerned about the slow progress at the Amayapampa project during these times of high gold prices and recognized that continued delay in placing the project into production might not be well received by the local community. Vista plans to continue to advance the project while seeking a partner or buyer with the financial and personnel resources to manage and develop the project and commence commercial gold production in the shortest time possible. Vista plans to engage consultants and commence a work program to upgrade the scoping study completed by Luzon (initially filed on SEDAR under Luzon Minerals Ltd. and subsequently by Vista on October 18, 2006) to a feasibility study. We remain confident that the project is an attractive project at today's gold prices. Employee training, which Luzon had started, utilizing the services of professional trainers, will continue and the workers will be provided opportunities to participate in the on-site activities related to the proposed work program as plans for the program are developed."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as plans to advance the Amaypampa Project including plans for commencement of a work program to upgrade the scoping study to a feasibility study for the Project and performance or results of any such feasibility study, plans to seek a potential partner or buyer to manage or develop the Amayapampa Project, timing for commencement of commercial production at the Project, anticipated profitability of the Project, continuation of employee training at the Project, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Third Quarter Financial Results
Vista Gold Corp. (TSX & Amex: VGZ) announced today its financial results for the three and nine months ended September 30, 2007, as filed on November 9, 2007, with the US Securities and Exchange Commission and with the relevant securities commissions in Canada in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended September 30, 2007 of US$2.2 million or US$0.07 per share compared to a consolidated net loss of US$1.4 million or US$0.05 per share for the same period in 2006. The Corporation's consolidated net loss for the nine-month period ended September 30, 2007 was US$6.2 million or US$0.19 per share compared to a consolidated net loss of US$3.4 million or US$0.14 per share for the same period in 2006. For both the three and nine-month periods, the increases in the consolidated losses of US$0.8 million and US$2.8 million from the respective prior periods are primarily the result of costs related to the completion on May 10, 2007, of the Arrangement involving the Corporation, Allied Nevada Gold Corp. and Carl and Janet Pescio. The transaction resulted in the acquisition by Allied Nevada of the Corporation's Nevada properties and the Nevada mineral assets of Carl and Janet Pescio. These costs amounted to US$0.5 million and US$2.9 million for the respective periods.
Cash used in operations was US$1.0 million for the three-month period ended September 30, 2007, compared to US$1.1 million for the same period in 2006. The decrease of US$0.1 million is the result of an increase in accounts receivable of US$0.2 million, an increase in supplies inventory, prepaids and other of US$0.8 million and an aggregate increase of non-cash items of US$0.3 million, partially offset by a decrease in accounts payable, accrued liabilities and other expenses of US$0.3 million; and an increase in the consolidated net loss of US$0.8 million.
Cash used in operations was US$3.9 million for the nine-month period ended September 30, 2007, compared to US$3.3 million for the same period in 2006. The increase of US$0.6 million is mostly the result of an increase in the Corporation's net loss for the same 2006 period of US$2.8 million, which is partially offset by an aggregate increase of non-cash items of US$2.2 million.
Net cash used for investing activities increased to US$1.3 million for the three-month period ended September 30, 2007 from US$1.0 million for the same period in 2006. The increase of US$0.3 million mostly reflects an increase of US$0.3 million for additions to mineral properties. The US$1.3 million invested for the three-month period ended September 30, 2007 was mostly attributable to: the Corporation's Mt. Todd project in Australia -- US$0.8 million on an intensive exploration program with the objective of confirming and better defining the resource base and to obtain samples for metallurgical testing; the Corporation's Paredones Amarillos project in Mexico and other projects -- US$0.5 million on pre-feasibility and pre-development work and annual option payments. As stated in the Corporation's recent press release dated November 6, 2007, the Board approved the funding for the initial development of the Paredones Amarillos project; management anticipates that this will result in extensive investment in that property in the ensuing months.
Net cash used for investing activities increased to US$29.6 million for the nine-month period ended September 30, 2007 from US$3.2 million for the same period in 2006. The increase of US$26.3 million mostly reflects the US$24.5 million cash transferred to Allied Nevada in conjunction with the Plan of Arrangement representing the Corporation's payment of US$25 million, less US$0.5 million in loans repaid to the Corporation by Allied Nevada, pursuant to the terms of the Arrangement Agreement. In return for the payment and transfer of assets to Allied Nevada, the Corporation received 26,933,055 shares of Allied Nevada, of which 25,403,207 shares were distributed to the Corporation's shareholders and 1,529,848 shares are being retained by the Corporation to facilitate the tax payments, if any, payable in respect of the Arrangement. Although management has been informed that based on latest tax determinations the Corporation is not subject to a tax withholding requirement with respect to any gain deemed realized on the distribution, the Corporation will not know what its ultimate tax liability, if any, will be until its corporate income tax returns are completed for the year ending December 31, 2007. Of the remaining US$5.0 million invested in the nine-month period ended September 30, 2007, US$4.6 million was spent on upgrading of mineral properties. The majority of the US$4.6 million was spent on: Mt. Todd -- US$3.7 million on an extensive drilling program and other land costs, Paredones Amarillos and other projects -- US$0.9 million on pre-development work and pre-feasibility work.
Net cash provided by financing activities increased to US$1.9 million for the three-month period ended September 30, 2007, from US$1.1 million for the same period in 2006. Net cash provided by financing activities decreased to US$3.4 million for the nine-month period ended September 30, 2007, from US$26.4 million for the same period in 2006. Warrants exercised during the three-month period ended September 30, 2007 produced cash proceeds of US$1.4 million, as compared to US$0.8 million for the same period in 2006. For the three-month period, the increase relates to warrant exercises pertaining to the September 2005 private placement warrants that expired on September 23, 2007. Warrants exercised during the nine-month period ended September 30, 2007 produced cash proceeds of US$2.9 million, as compared to US$25.6 million for the same period in 2006. For the nine-month period, the decrease relates to the acceleration in May 2006 of the expiry of the warrants issued in the Corporation's February 2003 private placement and the warrants issued in the Corporation's September 2004 private placement.
Stock option exercises produced cash of US$0.5 million during the three-month period ended September 30, 2007 as compared to US$0.3 million for the same period in 2006. Stock option exercises produced cash of US$0.5 million during the nine-month period ended September 30, 2007 as compared to US$0.8 million for the same period in 2006.
At September 30, 2007, the Corporation's total assets were US$55.7 million compared to US$92.7 million at December 31, 2006, representing a decrease of US$37.0 million. Part of this decrease of US$18.6 million was attributed to the mineral properties transferred to Allied Nevada Gold Corp.; the remaining decrease was primarily made up of the reduction in working capital. At September 30, 2007, the Corporation had working capital of US$27.9 million compared to US$49.7 million at December 31, 2006, representing a decrease of US$21.8 million. This decrease relates to a decrease in cash balances from year end due to the transfer of US$25 million to Allied Nevada net of US$0.5 million in loans repaid to the Corporation by Allied Nevada pursuant to the terms of the Arrangement Agreement.
The principal component of working capital at both September 30, 2007 and December 31, 2006, is cash and cash equivalents of US$18.6 million and US$48.7 million, respectively. Other components include supplies inventory, prepaids and other (September 30, 2007 -- US$0.5 million; December 31, 2006 -- US$0.3 million), marketable securities (September 30, 2007 -- US$9.0 million; December 31, 2006 -- US$0.8 million) and accounts receivable (September 30, 2007 -- US$0.4 million; December 31, 2006 -- US$0.6 million). Included in the marketable securities at the end of September 30, 2007, is the value of US$7.6 million for the Allied Nevada Gold Corp. shares held by the Corporation. At September 30, 2007, the Corporation had no outstanding debt to banks or financial institutions.
The selected financial data including the results of operations for the three-month and nine-month periods ended September 30, 2007 compared to the same periods in 2006, and the financial position as at September 30, 2007 compared to December 31, 2006 is summarized in the following table:
Selected Financial Three Months Ended Nine Months Ended
Data September 30, September 30,
2007 2006 2007 2006
U.S. $000's, except
loss per share
Results of operations
Net loss $(2,200) $(1,361) $(6,204) $(3,395)
Basic and diluted loss
per share (0.07) (0.05) (0.19) (0.14)
Net cash used in
operations (956) (1,113) (3,922) (3,259)
Net cash used in
investing activities (1,301) (960) (29,588) (3,239)
Net cash provided by
financing activities 1,902 1,082 3,414 26,372
Financial position September December
30, 31,
2007 2006
Current assets $28,456 $50,430
Total assets 55,746 92,731
Current liabilities 549 732
Total liabilities 574 5,604
Shareholders' equity 55,172 87,127
Working capital 27,907 49,698
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and the Guadalupe de los Reyes Projects in Mexico, the Mt. Todd Project in Australia, the Yellow Pine Project in Idaho, the Awak Mas Project in Indonesia, the Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934 and forward-looking information within the meaning of applicable securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as results of drilling programs and prospects for exploration and confirmation and definition of resources at the Mt. Todd project, potential development of the Paredones Amarillos project including anticipated investments to be made in the project, and timing for such investments, the performance of and results of the planned bankable feasibility study for the Paredones Amarillos Project, receipt of required environmental and other permits for the project, timing for starting and completion of drilling and testing programs, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and the securities commissions in Canada. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Board of Directors and Corporate Personnel Changes; Decision to Fund Initial Development of Paredones Amarillos Project, Mexico
Vista Gold Corp. (Amex: VGZ; TSX) announces that it is with regret that the Corporation's Board of Directors accepted the resignation of Robert A. Quartermain from the Board of Directors effective today. Mr. Quartermain cited pressing business requirements at Silver Standard Resources, Inc., where he is President and a director; as his reason for resigning; but announced that he will continue to assist the Corporation over the next 12 months as Special Advisor to the Board of Directors. On behalf of the Corporation, the Board of Directors expressed its appreciation for the services rendered to the Corporation by Mr. Quartermain during his tenure on the Board.
As a new independent director, the Board approved the appointment of Tracy A. Stevenson to the Board of Directors. Mr. Stevenson is a senior mining executive who worked for Rio Tinto plc and related companies for 26 years where he served in senior positions in information technology, finance, planning and business development and has been involved with many major exploration, development, and financing projects. Mr. Stevenson has served as Global Head of Information and Technology and Global Head of Business Process Improvement for Rio Tinto plc, Senior Vice President Finance and Control at Kennecott Corporation, and Executive Vice President Financial Services and Strategy at Comalco Limited. Mr. Stevenson holds a B.Sc. Accounting from the University of Utah, is a CPA and spent four years with a predecessor to the firm PriceWaterhouseCoopers LLP.
The Board also approved the appointment of Michael B. Richings (Chief Executive Officer) to the additional position of Executive Chairman of the Board of Directors, the appointment of Frederick H. Earnest (President and Chief Operating Officer) to the Board of Directors and the promotion of Kenneth W. Deter (Manager of Engineering and Metallurgy) to Vice President, Engineering and Metallurgy.
In other matters, the Board approved funding for the initial development of the Paredones Amarillos project in Mexico, such funding to include the purchase of items with long delivery times as they are identified. Vista completed a preliminary feasibility study in September 2005 (see Vista's press release of September 26, 2005), which was updated in June 2007 (see Vista's press release of June 21, 2007) to reflect 1st quarter 2007 cost parameters. As previously reported by Vista, the updated study indicated that the Paredones Amarillos project could be developed to produce an average of 113,000 ounces of gold per year for a 12.5 year production life at an average cash cost of US$358 per ounce with an initial investment of US$110 million. The project would consist of an open-pit mine with a flotation concentrator that would produce a concentrate from which gold would be recovered on-site. The study estimated the internal rate of return before taxes to be 12.5% at a gold price of US$550 per ounce. At gold prices of around US$650 per ounce, the return on investment before taxes is estimated at 23.8%. The Corporation is currently preparing a definitive feasibility study for the project reflecting an anticipated increased production rate to 130,000-150,000 ounces of gold per year. The Corporation plans to commence construction on the project in the second half of 2008.
The pre-feasibility study prepared in September 2005 is entitled "Technical Report, Paredones Amarillos Project, Baja California Sur, Mexico" and dated September 23, 2005. The June 2007 update of the technical report is entitled "Updated Technical Report, Paredones Amarillos Project, Baja California Sur, Mexico" and dated June 20, 2007. Mr. Neil Prenn, P. Eng. of Mine Development Associates of Reno, Nevada, an independent qualified person, prepared the technical reports referred to in this press release.
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as potential development of the Paredones Amarillos project including anticipated timing of commencement of construction of the project, availability of funding for development of the Paredones Amarillos project and estimates of cash costs and required capital investment for the project, estimates of production life, rates of production and internal rates of return if production is commenced at the Paredones Amarillos project, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks relating to delays and occurrence of additional costs in connection with the feasibility study underway at the Paredones Amarillos project; uncertainty of feasibility study results and estimates on which such results are based; risks relating to delays in commencement and completion of construction at the Paredones Amarillos project; risks of shortages of equipment or supplies; risks of inability to achieve anticipated production volume or manage cost increases; risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; uncertainty of being able to raise capital on favorable terms or at all; and external risks relating to the economy and credit markets in general; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez, +1-720-981-1185, for Vista Gold Corp.
Web site: http://www.vistagold.com/
Vista Gold Corp. Reports Progress at Paredones Amarillos Project
Vista Gold Corp. (Amex: VGZ; TSX) announced today that it has selected the following consulting firms to assist in preparation of a definitive feasibility study for its Paredones Amarillos Project in Baja California, Mexico. Research Development Inc. of Lakewood, Colorado, is to complete the confirmatory metallurgical testing program and define the process flow sheet. Mine Development Associates of Reno, Nevada, is to update the mineral resource estimate, determine proven and probable reserves, prepare the mine plan and estimate the mine capital and operating costs. KD Engineering of Tucson, Arizona, will be responsible for processing engineering/design, infrastructure engineering/design and estimating the processing capital and operating costs. Golder Associates, Inc. of Tucson, Arizona, is to manage geotechnical investigations and test work, provide guidance for the design of structural foundations, determine the most suitable method for disposal of the barren mill flotation tailings with the mine waste rock and design the tailings storage facility including preparing the associated capital and operating cost estimates. SRK Consulting (US), Inc. ("SRK") will be responsible for the pit slope stability determinations and has been retained to determine the optimum source of water for the project including the use of municipal waste water and desalinized or partially desalinized sea water. As previously announced (see press release of August 13, 2007), SRK was engaged to manage the preparation of the definitive feasibility study as well as undertake an economic analysis of the project and compile the final report.
As also mentioned in the August 13 press release, Corporacion Ambiental de Mexico, S.A. de C.V. ("CAM") has been retained to manage the environmental permitting activities for the project. CAM is a full-service environmental firm headquartered in Mexico City with experience in mining project permitting in Baja California. CAM recently reported to Vista that the environmental and change of land use permits issued to Echo Bay Mines when it held the project are still valid. The Corporation has presented all of the studies and permitting documents for its proposed metallurgical core drilling program and anticipates that it will receive the required permits. When the permits are received, Vista plans to expedite the start of drilling and the related confirmatory metallurgical test program, which is expected to be completed in the first quarter of 2008.
Fred Earnest, President and COO commented, "Vista is pleased to have this team of consultants selected for the preparation of the Paredones Amarillos Definitive Feasibility Study. Each company selected to participate in this study has demonstrated strength in their area of expertise. We believe that the combined experience of this team of consultants will result in a quality feasibility study."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as the performance of and results of the planned bankable feasibility study for the Paredones Amarillos Project, receipt of required environmental and other permits for the project, timing for starting and completion of drilling and testing programs, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission and the securities commissions in Canada. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Receives Exploration Licenses and Announces Drill Results at Mt. Todd Project, Australia, and Reviews Cash Position
Vista Gold Corp. (Amex: VGZ; TSX: VGZ) announced today that it has received four exploration licenses ("ELs") covering about 110,633 hectares primarily to the north- northeast of Vista's Mt. Todd gold mine in the Northern Territory, Australia. The ELs had been held in reserve status by the Northern Territory government prior to Vista acquiring the project. Vista's management believes exploration potential for gold and other minerals on these licenses to be good, and a program to systematically evaluate the mineral potential of this land is underway. Earlier work by past operators has identified Mt. Todd-type low- grade mineralization in a zone trending north-northeast of Mt. Todd and scattered prospects throughout the area covered by the ELs. Additionally, historical drill results indicate the presence of vein-type high-grade intercepts at various locations in the area covered by the ELs.
Vista has received initial gold assays for all of the 19 core drill holes completed at Mt. Todd earlier this year. Results for the first six core drill holes (one of which was abandoned due to difficult drilling conditions) were issued in Vista's press release dated May 30, 2007. Check assaying and assaying for other metals, including copper, is ongoing. The objectives of the program are to obtain information that supports the conversion of inferred gold resources to measured and indicated resources, to explore for additional resources on strike and down dip, to aid in the determination of the copper content of the deposit and to obtain samples for metallurgical testing.
The drilling program began February 1, 2007, and concluded on June 6, 2007, with 25 holes completed (including the one hole abandoned) for 9,883 meters of drilling, under the overall supervision of Robert Perry, CPG, Vista's Vice President of Exploration. Mr. Perry is a qualified person for the purposes of Canadian National Instrument 43-101. The drill holes covered an area of 1,600 meters by 300 meters. Drill hole spacing of the holes drilled in this program varied from 30 to 300 meters, but spacing between these holes and holes drilled by previous operators was less than 50 meters. The core drilling was done by Titeline Drilling PL of Australia, and the assaying for gold is being done by Northern Australian Labs in Pine Creek, Northern Territory, Australia, with check assaying by ALS Chemex of Australia. ALS Chemex of Australia and NT Environmental Laboratories Pty. Ltd. of Darwin, Northern Territory, Australia are doing multi-element analyses including copper. All holes were angle holes drilled to intersect mineralization at close to right angles; however, due to physical constraints and the complex nature of the deposit, true thickness of the drilled intervals cannot be assumed from the measured intercepts. Sampling and assaying methods are being conducted in accordance with the CIM Mineral Exploration Best Practices Guidelines. All samples taken were nominally one meter in length.
The initial gold assays for holes not previously reported in Vista's May 30, 2007, press release include the following highlights:
Drill Hole Interval Intercept Assay Including Intercept Assay
(m) (m) (g/t) (m) (m) (g/t)
VB07-007 98-107 9 1.16
144-151 7 1.40
171-178 7 1.14
187-195.9 8.9 3.16
225-328 103 1.38 227-230 3 6.72
243-246 3 4.81
309-316 7 2.22
VB07-008 17.3-20 2.7 1.89
39.3-44 4.7 1.27
53-56 3 1.32
92-95 3 1.37
158-175 17 1.68
191.8-210 18.2 2.08
251-254 3 2.16
302.9-316 13.1 2.23
344-348 4 2.64
369-373 4 1.93
386-407 21 3.36 398-399.2 1.2 32.17
514-420 5 1.32
431-471 40 2.62 436.9-441.1 4.2 3.38
451-455.1 4.1 2.97
467-468 1 47.67
483-487 4 1.63
VB07-009 11-14 3 1.63
127-134 7 1.38
195-205 10 1.18
216-218 2 5.75
245-332 87 1.21
358-390 32 1.40
408.9-412 3.1 4.72
VB07-010 71-75 4 2.14
82-85 3 3.95
122-125 3 1.33
208-211 3 2.44
230-233 3 1.09
241-244 3 1.62
295-300 5 1.91
313-437 124 2.26 358-366 8 10.1
386-389 3 7.79
VB07-012 10-13 3 1.69
160-167 7 1.24
200-203 3 1.63
218-221 3 1.16
VB07-013 202-209 7 1.19
316-340 24 1.28
372-381 9 1.09
VB07-014 19-24 5 1.32
81-85 4 2.26
109-113 4 1.16
125-136 11 1.97
170.7-174 3.3 1.49
355-362 7 1.45
401-413 12 2.08
429-433 4 2.26
439-444 5 1.15
451-456 5 3.68
500.1-504 3.9 2.12
513-526 13 2.2
VB07-015 22-57.2 35.2 1.68 52-57.2 5.2 4.83
71-275 204 1.91 132-136 4 9.46
225.9-229 3.1 7.63
257-257.9 0.9 32.23
VB07-016 259.9-266 6.1 2.02
290-295 5 1.04
VB07-017 110-113 3 2.04
126-130 4 1.57
219-223 4 3.24
282-293 11 2.96
301-324 23 1.27
331-337 6 1.09
375-378.3 3.3 1.69
VB07-018 173-180 7 1.08
194-198 4 1.37
211-216 5 1.08
245-382.1 137.1 2.27 256-264 8 6.74
289-295 6 4.29
327-335 8 3.89
352-355 3 7.68
379-382.1 3.1 8.97
404-408.1 4.1 1.45
415.9-429 13.1 1.58
474-483.9 9.9 1.7
VB07-019 125-129 4 2.16
VB07-020 96-100 4 1.07
173-176 3 1.19
188-191 3 2.01
VB07-021 39-74 35 1.57
98-108 10 1.64
200-233 33 2.72 208-216 8 7.00
249-260 11 1.16
272-306 34 1.24
VB07-022 65-72 7 2.83
81-108 27 2.30 81-85 4 7.67
200-203 3 3.19
254-260 6 1.01
413-417 4 3.27
450-456 6 2.05
482-485 3 6.62
VB07-023 69-72 3 2.13
79-86 7 1.14
187-191 4 1.48
VB07-024 275-279 4 1.74
VB07-025 26-31 5 3.04
109-120 11 1.17
127-130 3 1.21
223-238 15 1.58
359-363 4 1.57
The data, including sampling and assaying, has been verified by Mr. Perry by inspection of computer assay data print outs and visual inspection of drill core for purposes of this news release.
A description of the geology, mineralization and other information on the project can be found in the report "Preliminary Economic Assessment Mt. Todd Gold Project, Northern Territory, Australia" dated December 29, 2006, which has been filed on SEDAR by Vista.
Metallurgical samples have been selected from the new core samples and sent to Resource Development, Inc. of Wheat Ridge, Colorado, for additional metallurgical test work, which Vista expects to be completed later this year. Vista plans to use the results from the metallurgical testing and a new resource estimate resulting from the current drilling program to generate a preliminary feasibility study towards the end of this year.
Fred Earnest, President and COO of Vista stated, "The results of the 2007 drilling program are very encouraging, and all the intercepts are within the depth reached in the preliminary open pit design in the Preliminary Economic Assessment. The recent drill results contain long intervals of mineralization including hole VB07-015 that contains an intercept of over 200 meters containing 1.91 g/t gold. We plan to use the results of this drill program together with other historic information we have obtained to prepare a new resource estimate later this year."
On a separate topic, Vista notes that some Canadian-based mining companies have recently reported exposure to cash positions invested in Asset-Backed Commercial Paper ("ABCP") programs. Vista has approximately US$ 18 million in cash and cash equivalents, all of which are held in high-grade money market funds in Vista's bank accounts at a major U.S. bank. Vista has been informed by its bank that these money market funds do not directly invest in sub-prime or investment-grade domestic mortgages or single-seller ABCP programs from either prime or sub-prime mortgage originators and that all holdings of its money market funds present minimal credit risk. All of Vista's cash and cash equivalents are invested in products carrying the highest possible investment grade as determined by leading rating agencies.
About Vista Gold Corp.
Since 2001, Vista has acquired a number of proven gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as results of drilling programs and prospects for exploration and conversion of resources at the Mt. Todd project, the performance of and results of feasibility studies, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, credit status and liquidity of Vista's cash and cash-equivalent investments, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; uncertainty of being able to raise capital on favorable terms or at all; and external risks relating to the economy and credit markets in general; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward- looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp
CONTACT: Connie Martinez, +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Begins Bankable Feasibility Study for Paredones Amarillos Project
Vista Gold Corp. (Amex: VGZ; TSX) announced today that it has engaged SRK Consulting (US), Inc. to manage the preparation of a bankable feasibility study for its Paredones Amarillos Project in Baja California, Mexico. SRK is engaged to define the scope of work for the various consultants' studies, review and audit their work, undertake an economic analysis of the project, and compile and edit the final report. Fred Earnest, President and COO commented, "We believe that SRK's role in coordinating and reviewing the work of other qualified consultants will allow us to capitalize on the collective experience of many respected experts and will result in a quality feasibility study. We are pleased to have a company with SRK's technical expertise on our team."
In other news related to the Paredones Amarillos Project, Vista announced that Arturo Montano Munguia has been named as the Project Development Manager for the Paredones Amarillos Project. Mr. Montano is a Mexican national with over 30 years of mining industry experience with North American and Mexican mining companies. Mr. Earnest noted, "In the short time that Arturo has been part of our team, he has quickly assessed the current project status and begun laying the foundation for the execution of our development strategy for the Paredones Amarillos Project." Under Mr. Montano's direction, Vista has retained Corporacion Ambiental de Mexico, S.A. de C.V. ("CAM") to manage the environmental permitting activities for the Paredones Amarillos Project. CAM is a full-service environmental firm headquartered in Mexico City with experience in mining project permitting in Baja California.
Mike Richings, CEO of Vista stated that, "We believe these are key first steps taken by Vista toward the development of the Paredones Amarillos Project. During the coming months we plan to award contracts for detailed mine planning, process design, tailings impoundment design and other studies related to the feasibility design and evaluation process."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of proven gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at current gold prices. Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as the performance of and results of the planned bankable feasibility study for the Paredones Amarillos Project, Vista's future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez, +1-720-981-1185, for Vista Gold Corp.
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Second Quarter Financial Results
Vista Gold Corp. (Amex: VGZ; TSX) announced today its financial results for the quarter and six months ended June 30, 2007, as filed on August 9, 2007, with the US Securities and Exchange Commission and the relevant securities commissions in Canada in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended June 30, 2007, of US$3.2 million or US$0.10 per share compared to a consolidated net loss of US$0.9 million or US$0.04 per share for the same period in 2006. The Corporation's consolidated net loss for the six-month period ended June 30, 2007, was US$4.0 million or US$0.13 per share compared to a consolidated net loss of US$2.0 million or US$0.09 per share for the same period in 2006. The increased losses for the three-month and six-month periods compared to the respective prior-year periods of US$2.3 million and US$2.0 million, are primarily the result of one-time costs of US$2.4 million related to the completion, on May 10, 2007, of the previously announced Arrangement involving the Corporation, Allied Nevada Gold Corp. and Carl and Janet Pescio. The transaction resulted in the acquisition by Allied Nevada of the Corporation's Nevada properties and the Nevada mineral assets of Carl and Janet Pescio.
Upon completion of the Arrangement on May 10, 2007, the Corporation transferred its Nevada properties, and US$25.0 million in cash net of US$0.6 million in loan repayments, Allied Nevada in return for 26,933,055 shares of Allied Nevada common stock. Also, pursuant to the Arrangement, the Corporation's shareholders exchanged each of their Vista Gold Corp. common shares and received, subject to applicable withholding taxes: (a) one new share of Vista Gold Corp., (b) 0.794 of a share of Allied Nevada common stock, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada. Of the 26,933,055 Allied Nevada shares issued to the Corporation, 25,403,207 shares were distributed to the Corporation's shareholders, less any applicable withholding taxes, and the Corporation retained 1,529,848 shares to facilitate the payment of any taxes payable by it in respect to the Arrangement. Holders of Vista Gold Corp. options exchanged their options for options to acquire Allied Nevada shares and options to acquire newly created Vista Gold Corp. shares, and holders of the Corporation's warrants had their warrants adjusted in accordance with the terms of the warrants.
At June 30, 2007, the Corporation's total assets were US$53.9 million compared to US$92.7 million at December 31, 2006, representing a decrease of US$38.8 million. The decrease of US$38.8 million was primarily due to US$43.1 million of assets transferred from the Corporation to Allied Nevada upon completion of the Arrangement. The US$43.1 million included cash of US$24.4 million (being the above US$25 million net of the US$0.6 million loan repayment) and other assets of US$18.7 million, offset by an increase in marketable securities of US$7.0 million which primarily reflects the fair market value of the 1,529,848 shares of Allied Nevada retained by the Corporation to facilitate payment of any taxes payable in respect to the Arrangement.
At June 30, 2007, the Corporation had working capital of US$27.5 million compared to US$49.7 million at December 31, 2006, representing a decrease of US$22.2 million. The principal component of working capital at both June 30, 2007, and December 31, 2006, is cash and cash equivalents of US$19.0 million and US$48.7 million, respectively. At June 30, 2007, we had no outstanding debt to banks or financial institutions.
Net cash used in operations was US$1,768,000 for the three-month period ended June 30, 2007, compared to US$1,105,000 for the same period in 2006. Cash used in operations was US$2,966,000 for the six-month period ended June 30, 2007, compared to US$2,146,000 for the same period in 2006.
Net cash used for investing activities increased to US$26.3 million for the three-month period ended June 30, 2007, compared to US$0.8 million for the same period in 2006. The increase of US$25.5 million mostly reflects the net US$24.4 million cash transferred to Allied Nevada Gold Corp in connection with the closing of the Arrangement. Net cash used for investing activities increased to US$28.3 million for the six-month period ended June 30, 2007, from US$2.3 million for the same period in 2006. The increase of US$26.0 million is mostly the result of the completion of the Arrangement as noted above.
Net cash provided by financing activities decreased to US$250,000 for the three-month period ended June 30, 2007, from US$19.8 million for the same period in 2006. Net cash provided by financing activities decreased to US$1.5 million for the six-month period ended June 30, 2007, from US$25.3 million for the same period in 2006. Warrants exercised during the three-month period ended June 30, 2007 produced cash proceeds of US$250,000 as compared to US$19.7 million for the same period in 2006. Warrants exercised during the six-month period ended June 30, 2007 produced cash proceeds of US$1.5 million as compared to US$24.8 million for the same period in 2006. For the both three and six-month periods, the decreases relate to the acceleration of the February 2003 warrants and the September 2004 warrants in May 2006. There were no accelerations of warrants during 2007.
The selected financial data including the results of operations for the three-month and six-month periods ended June 30, 2007 compared to 2006, and the financial positions as at June 30, 2007 compared to December 31, 2006, is summarized in the following table:
Selected Financial Data Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
U.S. $000's, except loss per share
Results of operations
Net loss $(3,228) $(926) $(4,004) $(2,034)
Basic and diluted loss per share (0.10) (0.04) (0.13) (0.09)
Net cash used in operations (1,768) (1,105) (2,966) (2,146)
Net cash used in investing
activities (26,290) (830) (28,287) (2,279)
Net cash provided by financing
activities 250 19,834 1,512 25,290
Financial position June 30, December 31,
2007 2006
Current assets $27,904 $50,430
Total assets 53,908 92,731
Current liabilities 415 732
Total liabilities 440 5,604
Shareholders' equity 53,468 87,127
Working capital 27,489 49,698
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining- related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Appointment of President and Chief Operating Officer
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to announce the promotion of Mr. Frederick H. Earnest to President and Chief Operating Officer effective August 1, 2007. Mr. Earnest and Gregory G. Marlier, Chief Financial Officer, will continue reporting to Mike Richings, Chief Executive Officer. Mr. Richings, who prior to the promotion of Mr. Earnest, also held the title of President, will focus his efforts on corporate planning and strategy. Mr. Earnest joined Vista in September 2006 as Senior Vice President, Project Development, and has over 20 years previous experience in the mining industry, including the management of the development and operation of gold mines. The management change reflects Vista's increasing emphasis on the development of its most advanced gold projects: Paredones Amarillos, Mt. Todd and Yellow Pine.
Mike Richings, Vista CEO, commented, "Since joining Vista, Fred has demonstrated excellent management and executive skills, appropriate to his new position. The increasing management demands of developing three major projects necessitate the change and will allow me to focus on potential growth and value-adding opportunities for the Corporation."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp. +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. President and CEO Discusses Strategy and Future Plans
Vista Gold Corp.'s (TSX & Amex: VGZ) President and CEO Michael Richings explains Vista's strategy and future plans:
"Vista recently announced (May 10, 2007) the completion of a transaction that resulted in the launch of a new publicly owned company, Allied Nevada Gold Corp. Since completion of this transaction, Vista's share price has been quite volatile and has generally traded in a price range lower than what we and our advisors had expected. Based on calls we have received and conversations I have had with investors, I am concerned that there may be some confusion concerning Vista, its assets and its strategy. I therefore wish to clarify our plans and strategy and to confirm that Vista intends to continue to provide value and leverage to the gold investor.
First, a little background on our strategy: in 2002, we started acquiring already discovered gold deposits and by 2006 we had under our control 13 projects, with substantial gold resources. The 11 project acquisitions made during this period were, in our view, at a very low cost, and our plan was to hold these in anticipation of higher gold prices. This strategy worked well and as the gold price increased, we added significant value to the Corporation which was reflected in a strong share price. However, we felt we could do better.
In early 2006, we took steps to place our Nevada assets into a new Nevada-based mining company -- Allied Nevada, which we felt would cause these assets to be more highly valued. At the same time, we had an opportunity to acquire one of the largest privately held packages of mining property interests in Nevada. We felt the combination of our assets, the new assets and an experienced management and board, would generate increased returns for our shareholders. When the transaction was completed, approximately 65% of the shares of Allied Nevada were distributed to Vista shareholders, approximately 4% of the Allied Nevada shares were retained by Vista, and approximately 31% of the Allied Nevada shares were paid as partial payment to the vendors of the property interests. Allied Nevada is well financed and managed, and its early trading has been consistent with our estimate of value. We anticipate significant returns for our shareholders who received Allied Nevada shares, as its resources are explored and developed.
In the almost 12 months it took us to complete the Allied Nevada transaction, the gold price has traded consistently over $600 per ounce and it has become evident to us that the leverage to gold price we had earlier achieved by holding the resources in the ground is no longer as high as it was. Furthermore, higher gold prices and increased competition make it more difficult to add value by the acquisition of quality resources at accretive prices. We have therefore modified our strategic plan.
Vista now holds seven gold properties (please see our website for a tabulation of properties, resources and reserves) and the mineral deposits on these properties are well defined, with approximately 71% of the estimated gold resources categorized as measured and indicated. Three of these are advanced and either preliminary feasibility studies (Paredones Amarillos) or preliminary assessments (Mt. Todd and Yellow Pine) have been completed. Based on the recently completed studies and evaluations for Paredones Amarillos, Mt. Todd and Yellow Pine (published on SEDAR and our website), we believe these projects are potentially economic to develop at current gold prices. We have therefore modified our plans to implement a staged development plan of these three advanced projects, which will include studies that will seek to eliminate economic and technical uncertainties about the development of these mines. We will continue to hold the remaining properties for higher gold prices and continue to seek the acquisition of new resources as opportunities arise.
One of the more important goals in implementing this strategic plan is to significantly reduce the uncertainties associated with these projects, in the anticipation that the reduction of these uncertainties will be reflected positively in our share price. Each of Vista's projects has the benefit of significant historic expenditures made by other companies on testing, engineering and evaluation, which information and experience Vista acquired along with the properties for, what we believe were, very modest investments. The most advanced project is the Paredones Amarillos in Mexico and we plan to advance this project so that in 2008 we can make the decision to construct and build the mine. If we decide to proceed with development and operation of all three of our advanced projects and assuming a favorable gold price, Vista could be a mid-size producer in the next five years.
Vista's management team has demonstrated over the past five years the ability to undertake, negotiate and complete a variety of transactions designed to add value for Vista's shareholders. In particular, the creation of Allied Nevada has provided Vista shareholders with excellent exposure to a well-run Nevada based mining company. The team will continue to seek out opportunities to generate increased shareholder value going forward."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have demonstrated that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans, potential project development, future share price and valuation, future gold prices, Vista's potential status as a producer, and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Updated Pre-Feasibility Study for the Paredones Amarillos Gold Project, Mexico
Vista Gold Corp. (Amex: VGZ; TSX: VGZ) ("Vista") is pleased to announce the results of an updated pre-feasibility study for the Paredones Amarillos gold project in Baja California Sur, Mexico. Vista undertook this study to confirm favorable project economics in light of the severe cost inflation which has occurred in the mining sector over the past few years, and in anticipation of making more significant expenditures on the project in 2007. The pre-feasibility study was originally completed for Vista on September 26, 2005, by Mine Development Associates (MDA) of Reno, Nevada, an independent consulting firm, in accordance with Canadian National Instrument 43-101 guidelines, under the supervision of Mr. Neil Prenn, P. Eng., a qualified person, as previously disclosed by Vista in a press release dated September 26, 2005. MDA was assisted in the study by Resource Development Incorporated (RDi) of Wheat Ridge, Colorado, in metallurgical testing, process redesign, and processing cost estimation, and by WLR Consulting (WLR) of Lakewood, Colorado, in mine design. The pre-feasibility study technical report entitled "Technical Report, Paredones Amarillos Project, Baja California Sur, Mexico" dated September 23, 2005, is available on SEDAR. The current pre-feasibility study prepared for Vista reflects mid-2007 costs and economic parameters and was completed on June 20, 2007, under the direction of Mr. Prenn, P. Eng. of MDA, with assistance from RDi.
Proven and probable mineral reserves, as reported in the September 26, 2005, press release, were determined in 2005 within a proposed open pit mine, which was designed employing a Lerchs-Grossmann optimization technique based on U.S. $400 per ounce gold price and costs prevailing in 2005. The updated study concluded that the mineral reserves are appropriate as the effects of cost inflation are more than offset by higher gold prices. The results, which have not been modified since 2005, are summarized in the following table.
Paredones Amarillos Mineral Reserve Estimate*
(0.38 g/t gold internal cutoff grade)
Classification Gold Grade Waste
Tonnes (Fire Assay Contained Tonnes Strip Ratio
(000's) g/t) Gold Ounces (000's) (Waste: Ore)
Proven(1) 11,699 1.11 419,000 -NA- -NA-
Probable(1) 37,247 0.97 1,158,000 -NA- -NA-
Totals(1) 48,946 1.00 1,577,000 170,292 3.48
* No dilution factor was applied to the mineral reserves estimated from
the block model and a 100% resource recovery factor was used.
(1) Cautionary Note to U.S. Investors concerning estimates of Proven and
Probable Reserves: The estimates of mineral reserves shown in this
table have been prepared in accordance with Canadian National
Instrument 43-101 ("NI 43-101"). The definitions of proven and
probable reserves used in NI 43-101 differ from the definitions in
U.S. Securities and Exchange Commission Industry Guide 7.
Accordingly, Vista's disclosure of mineral reserves herein may not be
comparable to information from U.S. companies subject to the reporting
and disclosure requirements of the U.S. Securities and Exchange
Commission.
The current updated study and the study in 2005 examined the technical and economic feasibility of developing the mineral reserve. Two alternatives were studied, a base case and an alternative with a shorter life but generating a higher return on investment. Both projects would employ an 11,000 tonne/day flotation/leach plant.
The base case would produce an average production of 113,000 ounces per year over a 12.5 year production life, at an average production cost of U.S. $10.39 per tonne or U.S. $358 per ounce. The pre-production capital costs are estimated to be U.S. $110 million and at a U.S. $550 per ounce gold price, the return on investment is estimated at 12.5%. At current gold prices of around U.S. $650 per ounce, the return on investment is estimated at 23.8% and net cash flow generated is estimated at U.S. $284 million on a pre-tax basis. The study also indicated the net cash flow on a pre-tax basis could increase by U.S. $55.5 million with an increase in gold price of U.S. $50 per ounce.
The alternative case which considered the development of a subset of the reserves (34.1 million tonnes compared to the total reserve of 48.9 million tonnes) would produce an average production of 117,000 ounces per year over a 9.5 year production life. The pre-production capital costs are estimated to be U.S. $108 million and production costs estimated to be U.S. $334 per ounce and the project would generate an estimated 17.4% return on investment at a gold price of U.S. $550 per ounce. At current prices of around U.S. $650 per ounce of gold, the return is estimated at 31.1% and the net cash flow generated is estimated at U.S. $236 million on a pre-tax basis.
No known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other issues are expected to materially affect the mineral resource and mineral reserve estimates.
Mike Richings, President and CEO, commented, "While costs have increased in the two years since the original study was prepared, these increases have been more than offset by the gold price increase. We believe that the results of the study are clearly favorable and give us the necessary encouragement to continue our investments on the project to complete a bankable feasibility study over the next 12 months."
Richings continued, "The potential pre-tax net cash flow generated by this project is significant at current gold prices. The implied potential value at Paredones Amarillos, together with the value of Vista's other projects including Mt. Todd and Yellow Pine, and considering other factors, would appear to support our goal of achieving a higher share price for VGZ."
The resource model used to estimate the mineral reserves was originally reported by Vista in a press release dated August 29, 2002, based on an independent technical report entitled "Technical Report for the Paredones Amarillos Project" dated August 20, 2002, prepared by Snowden Mining Industry Consultants of Vancouver, British Columbia, in compliance with Canadian National Instrument 43-101. In connection with the pre-feasibility study and the updated pre-feasibility study, Mr. Prenn, P. Eng. of MDA is of the opinion that it is reasonable to rely on this resource model for the purposes of the mineral resource and mineral reserve estimates. The mineral resources have been estimated using a three-dimensional block model and ordinary kriging. No additional drilling or sampling has occurred in the resource area since the mineral resource estimate was first completed in August of 2002. The mineral resource estimate above a 0.5 grams gold per tonne cut-off at the Paredones Amarillos Project is summarized below:
Paredones Amarillos Measured and Indicated Mineral Resource Estimate
(0.5 g/t gold cutoff)
Classification Tonnes Gold Grade Contained
(000's) (Fire Assay g/t) Gold Ounces
Measured resources(1) 11,498 1.17 431,000
Indicated resources(1) 44,170 1.02 1,451,000
Total measured and
indicated
resources(1)(2) 55,668 1.05 1,882,000
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured resources"
and "indicated resources". We advise U.S. investors that while these
terms are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
Mineral resources that are not "mineral reserves" do not have
demonstrated economic viability.
(2) Mineral reserves are included in this mineral resource estimate.
Paredones Amarillos Inferred Mineral Resource Estimate
(0.5 g/t gold cutoff)
Classification Tonnes Gold Grade Contained
(000's) (Fire Assay g/t) Gold Ounces
Inferred resources(1) 5,495 0.79 140,000
(1) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission does
not recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or prefeasibility
studies. U.S. investors are cautioned not to assume that any part or
all of an inferred resource exists or is economically or legally
mineable.
Mr. Prenn, P. Eng. of MDA, an independent qualified person supervised the preparation of the technical information in this press release.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary economic evaluations with encouraging results on some of the projects at today's gold prices, and these projects warrant further study. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Mike Richings or Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Mike Richings or Connie Martinez, +1-720-981-1185, both for
Vista Gold Corp.
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Gold Resource Estimate for the Awak Mas Gold Project, South Sulawesi, Indonesia
Vista Gold Corp. (Amex: VGZ; TSX: VGZ) is pleased to announce that, following the completion of drilling in late 2006, a new mineral resource analysis for the Awak Mas deposit on South Sulawesi Island, Indonesia, was completed on June 6, 2007, by Gustavson Associates, LLC of Boulder, Colorado, in accordance with Canadian National Instrument 43-101 standards under the direction of Mr. John Rozelle, an independent Qualified Person, utilizing standard industry software and resource estimation methodology. Based on the resource analysis report, the gold resources for the Awak Mas deposit, reported at a cutoff grade of 0.5 grams of gold per tonne are:
Grade
Tonnes (grams per Contained
(000s) tonne) Gold Ounces
Measured resources (1) 7,084 1.30 296,000
Indicated resources (1) 34,609 1.22 1,360,000
Measured and
indicated resources (1) 41,693 1.24 1,656,000
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This table uses the terms "measured resources" and "indicated resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Grade
Tonnes (grams per Contained
(000s) tonne) Gold Ounces
Inferred resources (2) 20,425 0.82 539,000
(2) Cautionary Note to U.S. Investors concerning estimates of Inferred Resources: This table uses the term "inferred resources". We advise U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.
The resource model for the Awak Mas deposit and the resource analysis report include the results of 97,426 meters in 803 drill holes (645 core and 158 reverse circulation drill holes), predominantly on nominal 50 meters by 50 meters drill spacing with infill to nominal 25 meters by 25 meters on two limited areas of the deposit, the Mapacing and Rante areas done by Battle Mountain Gold Company, Masmindo Mining Corporation, and Placer Dome Inc., and, in late 2006 by Vista. Assaying was done on nominally one-meter samples by Analabs and successors in name in Jakarta and the Intertek Caleb Brett Laboratory in Jakarta with Analabs using a 50-gram sample and Intertek a 100-gram sample for fire assaying with atomic absorption spectrophotometry finish. By reviewing the sampling and assaying procedures utilized for the different drilling programs, Gustavson and previous independent consultants verified that the procedures were consistent with industry standard practices. An independent check sampling and assaying program was done by a previous independent consultant and results were found to be acceptable. Battle Mountain Gold, Masmindo Mining and Vista all had duplicate and check assaying programs in place which were reviewed by Gustavson and previous consultants and found that the assaying quality control procedures met industry standard practices.
The Awak Mas deposit is situated on the southern side of the Central Sulawesi Metamorphic Belt within a 50 kilometer long, north-northeast trending fault-bounded block of basement metamorphic rocks and younger sediments. The deposit area is dominated by the late Cretaceous Latimojong Formation, consisting of phyllites, slates, basic to intermediate volcanics, limestone and schist representing a platform and/or fore arc trough flysch sequence, which has been intruded by late-stage plugs and stocks of diorite, monzonite and syenite. Gold mineralization is predominantly hosted within the flysch sequence, which typically dips between 15° and 50°, generally towards the north. Gold is associated with sulfur-poor, sodic-rich fluids introduced at a relatively late stage in the tectonic history. Most gold mineralization is associated with abundant quartz veining and silica-albite-pyrite alteration; however, the association of gold and quartz is not ubiquitous, with some vein zones appearing to be locally barren of mineralization. Gold mineralization is distinctly mesothermal in character, atypical of the more ubiquitous low temperature or epithermal precious metal mineralization within many island arc environments in Indonesia.
In general, the Awak Mas deposit is comprised of a series of five principal zones: the Upper and Lower Rante, Lematik, Ongan, and Mapacing that are both adjacent to and slightly overlap each other. The Upper Rante is approximately 440 meters wide by 775 meters long and 390 meters vertically. The Lower Rante is approximately 820 meters wide by 630 meters long and 400 meters vertically. The Ongan is approximately 380 meters wide by 540 meters long and 270 meters vertically. The Lematik is approximately 560 meters wide by 750 meters long and 420 meters vertically. The Mapacing is approximately 290 meters wide by 680 meters long and 220 meters vertically. Two main styles of mineralization are present. The first represents broad, shallow-dipping zones of sheeted and stockwork quartz veining and associated alteration that conform to the shear fabric, especially within the dark, graphitic mudstones. The other style consists of steeper dipping zones of quartz veining and breccias associated with high-angle faults cutting both the flyschoid cover sequence and basement metamorphics. Late-stage, north-northeast trending normal faults locally disrupt or offset mineralization. A surface layer of consolidated scree and colluvium averaging 3-4 meters (maximum 15 meters) in thickness veneers the deposit.
Vista has retained Gustavson to undertake a Canadian National Instrument 43-101 preliminary assessment of a potential development of the deposit using the results of the resource analysis contained in the current report and other technical information. Considerable historic technical work regarding metallurgy, process flow sheet, plant design and infrastructure has been previously completed and Vista has made this information available to Gustavson. In addition, Gustavson will undertake new preliminary mining plans and utilize, where appropriate, other consultants to generate new information or update the older work.
Mike Richings, Vista's President and CEO, commented, "Our recent drilling program and reinterpretation of the ore zones has resulted in an improved understanding of the deposit and a significantly higher deposit grade compared to our earlier estimate, as previously reported. The measured and indicated resources are currently estimated to be 15% higher grade than the earlier estimate at the same cut-off grade. This means that capital and operating costs will be proportionately lower and the overall project economics will be improved. We are embarking on a preliminary assessment to gain an understanding of the overall project economics at current gold prices and to provide direction for a bankable feasibility study. We are committed to advancing our most attractive projects to a production decision and also to completing technical and economic evaluations on all projects so that shareholders and potential investors can appreciate the value of our projects at current gold prices and the sensitivity of these to changes in gold prices." The earlier estimate referred to by Mr. Richings was reported by the Corporation in press releases dated; November 2, 2004; April 18, 2005; and September 20, 2006.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Announces Initial Drill Results for Mt. Todd, Australia, Project and Decision to Develop Advanced Projects
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") is pleased to announce initial results from a drill program underway at its Mt. Todd project in the Northern Territory, Australia. The Corporation is conducting a diamond core drilling program totalling approximately 10,000 meters in 26 holes. The objectives of the program are to obtain information that supports the conversion of inferred gold resources to measured and indicated resources, to explore for additional resources on strike and down dip, to aid in the determination of the copper content of the deposit and to obtain samples for metallurgical testing.
The drilling program began February 1, 2007, and is continuing under the overall supervision of Robert Perry, CPG, Vista's Vice President of Exploration. Mr. Perry is a qualified person for the purposes of Canadian National Instrument 43-101. The core drilling is being completed by Titeline Drilling PL of Australia, and the assaying for gold is being done by Northern Australian Labs in Pine Creek, Northern Territory, Australia, with check assaying by ALS Chemex of Alice Springs, Northern Territory, Australia. Multi-element analyses, including copper, are being done by ALS Chemex of Alice Springs and NT Environmental Laboratories Pty. Ltd. of Darwin, Northern Territory, Australia. All holes were angle holes drilled to intersect mineralization at close to right angles; however, due to physical constraints and the complex nature of the deposit, true thickness of the drilled intervals cannot be assumed from the measured intercepts. Sampling and assaying methods are being conducted in accordance with the CIM Mineral Exploration Best Practices Guidelines. All samples taken were one meter in length.
At present, 24 holes have been completed with gold assays received for six holes drilled within the outline of the known mineralization. The assays include the following highlights:
Drill Interval Intercept Assay Including Intercept Assay
Hole (m) (m) (g/t) (m) (m) (g/t)
VB07-001 205-377 172 1.66 251-266 19 2.56
282-318 36 2.12
322-343 21 2.74
VB07-002 432-485 53 1.00
VB07-003 Abandoned and re-drilled as VB07-005
VB07-004 121-315 194 1.07 130-136 6 1.81
191-202.9 11.9 3.76
246-253 7 3.80
283-290 7 2.26
VB07-005 22-27 5 2.17
94-98 4 2.30
138-143 5 1.77
150-156 6 1.17
268-274 6 2.54
302-327 25 2.72 313-318 5 7.36
334-363 29 2.01
VB07-006 157-162 5 2.68
200-211 11 2.21
246-264 18 2.92
276-282 6 3.52
378-420 42 1.45
VB07-011 101-123 22 1.01
190-197 7 2.85
232-239 7 1.18
The data, including sampling and assaying, has been verified by Robert Perry, CPG, Vista's qualified person for purposes of this news release.
A description of the geology, mineralization and other information on the project can be found in the report "Preliminary Economic Assessment Mt. Todd Gold Project, Northern Territory, Australia" dated December 29, 2006, which has been filed on SEDAR by Vista.
Following the successful completion of the recent arrangement which included Vista's transfer of its Nevada assets into a new Nevada pure gold company, Allied Nevada Gold Corp. (AMEX: ANV) Toronto, and the distribution of approximately 66% of the shares of the new company to Vista shareholders, Vista will be focussing its efforts on developing its four most advanced projects. Three of these projects (Paredones Amarillos, Mt. Todd and Yellow Pine) have had preliminary Canadian National Instrument 43-101 studies completed. Information on the results of these studies has been released earlier and indicates the development and operation of these properties could be potentially profitable with current gold prices. Vista's management believes that developing the Paredones Amarillos, Mt. Todd and Yellow Pine projects to the point where production decisions can be made could result in an increase in the market valuation of the Corporation. These development programs will involve the preparation of bankable feasibility studies, permitting and other steps to eliminate uncertainties about the economic and technical feasibility of the projects. The most advanced project is Paredones Amarillos and Vista plans to advance this project to a production decision by the third quarter of 2008.
Mike Richings, President and CEO, commented, "We are pleased with the drill results at Mt. Todd so far; the early holes are designed to supply the information that will allow the conversion of inferred gold resources into measured and indicated gold resources. These holes will also generate samples that we can assay for copper, which was not determined in previous work on a consistent basis. We believe, based on preliminary test work, copper is pervasive throughout the deposit and Vista's preliminary evaluation determined that a copper concentrate could be separated through flotation, which would also contain about half of the gold. We recognized from the outset that the Mt. Todd ore because of its hardness and other metallurgical characteristics would be difficult to process and the potential production of a copper concentrate at a relatively coarse grind might offer a lower cost solution. With respect to our decision to proceed to develop our most advanced projects, this is a logical step. Our ability to increase our valuation through acquisition of new projects is limited at current gold prices. If we compare our valuation against similar sized companies with similar projects, we have observed that companies with projects actively under development and closer to a production decision are generally accorded greater values by the market. Thus we believe that by proceeding to develop the most advanced of our projects to production decisions, the result could be a higher valuation for the Corporation. We will continue to examine opportunities to add resources at
reasonable prices and to look for other opportunities to extract value from our portfolio for the benefit of our shareholders, but at current gold prices it makes sense for us to add value through developing our best projects."
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt. Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com/
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Announces Determination of Fair Market Value of Shares of Allied Nevada Gold Corp.
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") announced today that its board of directors determined that the fair market value of each share of Allied Nevada Gold Corp. ("Allied Nevada") on May 10, 2007, the effective date of the previously announced plan of arrangement involving Vista, Allied Nevada and Carl and Janet Pescio (the "Arrangement"), was U.S.$4.6265. Although, this determination will not be binding on the U.S. Internal Revenue Service or the Canada Revenue Agency, it was necessary to, among other things, determine whether a deemed dividend arose for Canadian tax purposes in respect of the Arrangement. In light of this determination, Vista has concluded that no deemed dividend arose for Canadian tax purposes in respect of the Arrangement. Consequently, the shares of Allied Nevada withheld from certain shareholders of Vista at the closing of the Arrangement to satisfy potential withholding tax obligations if a deemed dividend for Canadian tax purposes arose, will be distributed to shareholders from whom they were withheld as soon as practicable.
As previously indicated in the management information and proxy circular of Vista dated October 11, 2006 (the "Circular"), Vista agreed to provide this information to its shareholders after the effective date of the Arrangement. For more information on this and other tax implications of the Arrangement, securityholders should review the Circular and consult with their own tax advisors.
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. Vista's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's business, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista, including anticipated consequences of the transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information on Vista, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces First Quarter Financial Results
Vista Gold Corp. (Amex: VGZ; TSX) announced today its financial results for the three months ended March 31, 2007, as filed on May 10, 2007, with the US Securities and Exchange Commission and with the relevant securities commissions in Canada in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended March 31, 2007, of US$776,000 or US$0.02 per share compared to a consolidated net loss of US$1,108,000 or US$0.05 per share for the same period in 2006. The decrease in the consolidated net loss of US$332,000 from the prior year is largely due to an increase in interest income of US$568,000 as well as increased gains on the disposal of marketable securities of US$163,000. These increases in income were partly offset by increases in exploration, property evaluation and holding costs of US$78,000, corporate administration and investor relations costs of US$216,000 and stock-based compensation costs of US$100,000.
Net cash used for operations was US$920,000 for the three-month period ended March 31, 2007, compared to US$1,041,000 for the same period in 2006. The decrease of US$121,000 is the result of an increase in cash used for accounts receivable of US$337,000, an increase in supplies inventory, prepaids and other of US$134,000 and an aggregate decrease of non-cash items of US$111,000, partially offset by a decrease in accounts payable and accrued liabilities of US$371,000 and a decrease in the consolidated net loss of US$332,000.
Net cash used for investing activities increased to US$2.0 million for the three-month period ended March 31, 2007, from US$1.4 million for the same period in 2006. The increase of US$0.6 million is primarily the result of an increase in the addition of mineral properties of US$1.4 million of which a significant portion is the result of the drilling program in progress at the Mt. Todd gold mine, which was acquired during 2006. This increase is partially offset by a decrease of US$1.0 million in acquisitions of mineral properties. This represents the funds that Vista Gold placed in escrow during the same period in 2006 in connection with the acquisition of the Mt. Todd gold mine, which was completed in June 2006. There were no comparable expenditures related to acquisitions during the 2007 period.
Net cash provided by financing activities decreased to US$1.0 million for the three-month period ended March 31, 2007, from US$5.5 million for the same period in 2006. Warrants exercised during the period ended March 31, 2007 produced cash proceeds of US$1.2 million as compared to US$2.0 million for the same period in 2006. Stock option exercises produced cash of US$17,000 during the period ended March 31, 2007 as compared to US$293,000 for the same period in 2006. In February 2006, we completed a private placement financing for net proceeds of US$3.21 million. There were no comparable transactions in the 2007 period. The increase of US$0.3 million for prepaid transaction costs for the period ended March 31, 2007 as compared to the same period in 2006 is due to costs incurred in connection with the proposed Arrangement transaction involving Vista Gold, Allied Nevada Gold Corp. and Carl and Janet Pescio, which closed on May 10, 2007 (see discussion below). With the completion of the Arrangement, these costs will offset any gain that we realize on the transaction.
At March 31, 2007, our total assets were US$94.0 million compared to US$92.7 million at December 31, 2006, representing an increase of US$1.3 million. At March 31, 2007, we had working capital of US$48.4 million compared to US$49.8 million at December 31, 2006, representing a decrease of US$1.4 million. This decrease relates to a decrease in cash balances from year end and an increase in liabilities.
The principal component of working capital at both March 31, 2007 and December 31, 2006, is cash and cash equivalents of US$46.8 million and US$48.7 million, respectively. Other components include supplies inventory, prepaids among other things (March 31, 2007 -- US$510,000; December 31, 2006 -- US$381,000), marketable securities (March 31, 2007 -- US$1,242,000; December 31, 2006 -- US$791,000) and other liquid assets (March 31, 2007 -- US$1,100,000; December 31, 2006 -- US$773,000). At March 31, 2007, we had no outstanding debt to banks or financial institutions.
The selected financial data including the results of operations for the three-month period ended March 31, 2007 compared to 2006, and the financial position as at March 31, 2007 compared to December 31, 2006 is summarized in the following table:
Selected Financial Data Three Months Ended March 31,
2007 2006
U.S. $000's, except loss per share
Results of operations
Net loss $(776) $ (1,108)
Basic and diluted loss per share (0.02) (0.05)
Net cash used in operations (920) (1,041)
Net cash used in investing activities (1,997) (1,449)
Net cash provided by financing activities 984 5,456
Financial position March 31, December 31,
2007 2006
Current assets $49,617 $50,643
Total assets 94,006 92,731
Current liabilities 1,168 893
Total liabilities 5,876 5,604
Shareholders' equity 88,130 87,127
Working capital 48,449 49,750
As previously announced, the Arrangement involving Vista Gold, Allied Nevada and Carl and Janet Pescio closed on May 10, 2007. The transaction resulted in the acquisition by Allied Nevada of our Nevada properties and the Nevada mineral assets of Carl and Janet Pescio. Of the 38,933,055 Allied Nevada shares issued as part of the transaction, 12,000,000 were issued to Carl and Janet Pescio as partial consideration for the acquisition of their Nevada mineral assets and 26,933,055 were issued to Vista in accordance with the Arrangement. Of the 26,933,055 Allied Nevada shares issued to Vista, 25,403,207 shares will be available for distribution to our shareholders, subject to applicable withholding taxes (as described in the management and information and proxy circular of Vista Gold dated October 11, 2006) and after we retain approximately 1.5 million shares to facilitate the payment of any taxes payable by us in respect of the Arrangement. Accordingly, for each share of Vista Gold that a shareholder owned immediately prior to the effective time of the Arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista Gold, (b) 0.794 of an Allied Nevada share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada. The new common shares of Vista Gold and Allied Nevada shares began trading on May 10, 2007, on the Toronto Stock Exchange and the American Stock Exchange.
At March 31, 2007, our working capital was US$48.4 million. Following Vista's transfer of US$25 million in cash to Allied Nevada in connection with the closing of the Arrangement, Vista's working capital is now approximately US$23 million (of which approximately US$20 million is cash).
The annual general meeting of the Corporation's shareholders was held on May 7, 2007. Re-elected to the Board of Directors for a one-year term were John M. Clark, W. Durand Eppler, C. Thomas Ogryzlo, Robert A. Quartermain and Michael B. Richings. PricewaterhouseCoopers LLP was re-appointed independent auditor.
Since 2001, Vista Gold Corp., based in Littleton, Colorado, has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. The Corporation's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's business, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which Vista operates; risks due to legal proceedings; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information on Vista, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold and Allied Nevada Announce Listing of New Shares
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") and Allied Nevada Gold Corp. (AMEX: ANV) Toronto ("Allied Nevada") announce that the new common shares of Vista and the shares of common stock of Allied Nevada ("Allied Nevada Shares") began trading today on the Toronto Stock Exchange (the "TSX") and the American Stock Exchange (the "AMEX"). The listings on the TSX and the AMEX result from the completion of the previously announced plan of arrangement involving Vista, Allied Nevada and Carl and Janet Pescio that closed earlier today. The completion of the transaction resulted in, among other things, the transfer of Vista's Nevada properties to Allied Nevada. Accordingly, shareholders should be aware that Vista no longer holds any interest in these Nevada properties and trading in the Vista shares on both exchanges is ex-distribution of the Allied Nevada Shares distributed pursuant to the arrangement.
As previously announced, for each share of Vista that a shareholder owned immediately prior to the effective time of the arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista, (b) 0.794 of an Allied Nevada Share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada. The amount of any cash payment in lieu of a fractional share is equal to the product of: (i) the fractional interest; multiplied by (ii) US$5.00.
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. The Company's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
About Allied Nevada Gold Corp.
Allied Nevada has a large land position in Nevada, providing a strong platform from which to aggressively pursue growth opportunities. Allied Nevada has more than 250 square miles of exploration and development properties, located in some of the most prolific gold mining trends in the State of Nevada. Allied Nevada's seasoned executive team is committed to the goal of maximizing the value of the company and rewarding shareholders for their confidence in the Allied Nevada business model. Allied Nevada's board of directors is chaired by Robert Buchan and includes executives with experience in legal, accounting, investment banking, exploration and operations.
For additional information on Allied Nevada, please refer to the company's public filings available at www.sec.gov/edgar.shtml and www.sedar.com. Allied Nevada is currently developing a website, which it expects to launch shortly.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista or Allied Nevada expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, on Allied Nevada's Annual Report on Form 10-K, and other documents filed with the U.S. Securities and Exchange Commission. Although Vista and Allied Nevada each has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista and Allied Nevada assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information on Vista, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com. For further information on Allied Nevada, please contact Hal Kirby or Scott Caldwell at (775) 358-4455.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185; or Hal
Kirby or Scott Caldwell, both of Allied Nevada Gold Corp., +1-775-358-4455
Web site: http://www.vistagold.com/
Vista Gold and Allied Nevada Announce Closing of Arrangement
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") and Allied Nevada Gold Corp. (AMEX: ANV) Toronto ("Allied Nevada") announce that the previously announced plan of arrangement involving Vista, Allied Nevada and Carl and Janet Pescio (the "Arrangement") closed today. The transaction resulted in the acquisition by Allied Nevada of Vista's Nevada properties and the Nevada mineral assets of Carl and Janet Pescio. Of the 38,933,055 shares of common stock ("Allied Nevada Shares") issued by Allied Nevada as part of the transaction, 12,000,000 were issued to Carl and Janet Pescio as partial consideration for the acquisition of their Nevada mineral assets and 26,933,055 were issued to Vista in accordance with the Arrangement. Of the 26,933,055 Allied Nevada Shares issued to Vista, 25,403,207 shares will be available for distribution to shareholders of Vista, subject to applicable withholding taxes (as described in the management information and proxy circular of Vista dated October 11, 2006) and after Vista retains approximately 1.5 million shares to facilitate the payment of any taxes payable by Vista in respect of the Arrangement. Accordingly, for each existing share of Vista that a shareholder owned immediately prior to the effective time of the Arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista, (b) 0.794 of an Allied Nevada Share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada.
Mike Richings, President and CEO of Vista, said, "We are pleased to have completed this transaction which will result in Vista and its shareholders owning 70% of a new Nevada gold mining company -- Allied Nevada Gold Corp. Vista has created Allied Nevada as a platform for a major new Nevada-focused mining company with a large land package, a pipeline of development projects and the Hycroft mine which is positioned for early resumption of gold production. We have assembled in Allied Nevada an excellent management team led by CEO Scott Caldwell and a board of directors chaired by Robert Buchan. Vista believes that it has provided sufficient working capital to launch the new company on a path to provide Vista shareholders with additional value and an investment in a well-run company with exposure to what many believe is one of the best locations in the world to explore, develop and mine for gold. Following the closing, Vista expects that it will continue to provide its shareholders with excellent leverage to the gold price through its remaining seven gold projects. During the next year, Vista plans to advance the Paredones Amarillos project to a production decision and to continue to develop our other advanced projects including Mt Todd, Yellow Pine and Awak Mas. We also continue to look for ways to add to our existing gold resource base."
"Allied Nevada was formed by combining the exciting land packages assembled by Vista and Carl Pescio. Allied Nevada shareholders will benefit from the vision of Mike Richings and the rest of Vista's Board of Directors and management, and Carl Pescio's talent for identifying and acquiring exploration properties in Nevada," said Scott Caldwell, President and CEO of Allied Nevada. "With these exciting assets, a strong board of directors and a seasoned management team, I am confident that Allied Nevada will be successful in rewarding our shareholders for their commitment to the company."
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. The Company's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
About Allied Nevada Gold Corp.
Allied Nevada has a large land position in Nevada, providing a strong platform from which to aggressively pursue growth opportunities. Allied Nevada has more than 250 square miles of exploration and development properties, located in some of the most prolific gold mining trends in the State of Nevada.
Allied Nevada plans to focus in the short term on three main fronts:
1. Exploration at the Hycroft mine on oxide and sulphide targets
2. Reopening the Hycroft mine
3. A comprehensive review of its current exploration portfolio to
identify further opportunities to increase shareholder value.
Allied Nevada's seasoned executive team is committed to the goal of maximizing the value of the company and rewarding shareholders for their confidence in the Allied Nevada business model. The executive team that has been assembled includes:
Scott Caldwell, President and Chief Executive Officer, is a mining engineer with more than 30 years of experience in the mining industry. Scott was most recently the Chief Operating Officer of Kinross Gold Corporation and has extensive experience in Nevada and internationally. Hal Kirby, Vice President and Chief Financial Officer, is a certified public accountant with more than 15 years of experience in the mining industry. Hal was most recently the Vice President and Controller of Kinross Gold Corporation. Mike Doyle, Vice President of Technical Services, is a geologist with more than 30 years of experience in the mining industry. Mike was previously the Vice President of Operations for Kinross Gold Corporation and prior to that was the Vice President and General Manager of the Round Mountain gold mine in Nevada.
Allied Nevada's board of directors is chaired by Robert Buchan and includes executives with experience in legal, accounting, investment banking, exploration and operations.
For additional information on Allied Nevada, please refer to the company's public filings available at www.sedar.com and www.sec.gov/edgar.html. Allied Nevada is currently developing a website, which it expects to launch shortly.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista or Allied Nevada expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining- related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, on Allied Nevada's Annual Report on Form 10-K, and other documents filed with the U.S. Securities and Exchange Commission. Although Vista and Allied Nevada each has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista and Allied Nevada assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information on Vista, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com. For further information on Allied Nevada, please contact Hal Kirby or Scott Caldwell at (775) 358-4455.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185; or Hal
Kirby or Scott Caldwell, both of Allied Nevada, +1-775-358-4455
Web site: http://www.vistagold.com/
Vista Gold Announces Number of Shares to be Distributed as Part of Arrangement
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") announced today that it will receive a total of 26,933,055 shares of common stock of Allied Nevada Gold Corp. ("Allied Nevada Shares") as part of the previously announced arrangement involving Vista, Allied Nevada Gold Corp., and Carl and Janet Pescio (the "Arrangement"). Of these 26,933,055 Allied Nevada Shares, 25,403,207 shares will be available for distribution to shareholders of Vista, subject to applicable withholding taxes (as described in the management information and proxy circular of Vista dated October 11, 2006) and after Vista retains approximately 1.5 million shares to facilitate the payment of any taxes payable by Vista in respect of the Arrangement. Accordingly, assuming there is no change in the number of the issued and outstanding shares of Vista between the date hereof and the effective time of the Arrangement, for each existing share of Vista that a shareholder owns immediately prior to the effective time of the Arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista, (b) 0.794 of a Allied Nevada Share and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada.
As previously announced, the distribution to shareholders who are not residents in Canada may be subject to withholding taxes, which cannot be determined until after the closing of the Arrangement. Consequently, Vista will withhold 10% of all Allied Nevada Shares distributable to shareholders who are not residents in Canada, to meet any shareholder withholding tax requirements. Withholding taxes, if any, will be paid from the proceeds of selling Allied Nevada Shares withheld by Vista from distribution to Vista shareholders. Once sufficient net proceeds have been realized to meet any withholding tax requirements, the remaining Allied Nevada Shares, if any, will be distributed to the shareholders who are not residents in Canada who had their Allied Nevada Shares withheld.
Vista hereby notifies all shareholders that any deemed dividend that arises as part of the Arrangement is designated to be an eligible dividend for Canadian tax purposes.
About Vista Gold Corp.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The Company's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Mt. Todd project in Australia, the Amayapampa project in Bolivia and the Awak Mas project in Indonesia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Announces Effective Time for Completion of Arrangement
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") announced today, that as previously announced, the arrangement involving Vista, Allied Nevada Gold Corp., and Carl and Janet Pescio, is expected to close on May 10, 2007. The effective time of the arrangement is expected to be 12:01 a.m. (Pacific time) on May 10, 2007. For greater clarity, all shareholders of Vista at 12:01 a.m. (Pacific time) on the closing date of the arrangement will participate in the arrangement. Accordingly, in order to participate in the arrangement you must own shares of Vista at the close of trading on the day before the closing date.
About Vista Gold Corp.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The Company's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Mt. Todd project in Australia, the Amayapampa project in Bolivia and the Awak Mas project in Indonesia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Announces Expected Closing Date for Completion of Arrangement
Vista Gold Corp. (Amex: VGZ; TSX) ("Vista") announced today that the U.S. Securities and Exchange Commission has completed the review process with respect to the registration of Allied Nevada Gold Corp. common stock ("Allied Nevada Shares") under the U.S. Securities Exchange Act of 1934. The previously announced arrangement involving Vista, Allied Nevada Gold Corp. ("Allied Nevada"), and Carl and Janet Pescio, is expected to close on May 10, 2007. All shareholders of Vista on the closing date of the arrangement will participate in the arrangement. If you are a shareholder and you have not reviewed the management information and proxy circular of Vista dated October 11, 2006 (the "Circular"), which provides detailed information on the arrangement, including information of certain tax consequences of the arrangement, you should download a copy of the Circular from SEDAR at www.sedar.com.
Letters of Transmittal were mailed to registered shareholders of Vista on October 20, 2006. If you are a registered shareholder and have not received a Letter of Transmittal, contact the Depositary, Computershare Investor Services Inc., at 1 (800) 564-6253 or download a copy from SEDAR at www.sedar.com. If you hold your shares through a broker or intermediary, you should carefully follow the instructions of such broker or intermediary in order to submit your shares. Completed Letters of Transmittal, along with certificates representing your shares, must be submitted in accordance with the Letters of Transmittal to receive certificates representing new shares of Vista and Allied Nevada Shares and a check for any cash payment to which the registered shareholder is entitled to under the arrangement, all subject to applicable withholding taxes.
Vista will issue a press release prior to the closing of the arrangement that will disclose the number of Allied Nevada Shares that will be distributed by Vista to shareholders of Vista as part of the arrangement. The number of Allied Nevada Shares to be distributed by Vista will be a pro rata portion of (a) the number of Allied Nevada Shares received by Vista as part of the arrangement less (b) the number of Allied Nevada Shares retained by Vista to facilitate the payment of any taxes payable by Vista in respect of the arrangement. The exact number of Allied Nevada Shares (i) issuable to Vista under the arrangement and (ii) to be retained by Vista to facilitate the payment of any taxes payable by Vista in respect of the arrangement will not be determined until immediately prior to the closing. In addition, any distribution to shareholders may be subject to withholding taxes (as described in the Circular) which amount will be paid from the proceeds of selling Allied Nevada Shares withheld by Vista from distribution to Vista shareholders.
In addition, after closing Vista will advise the holders of warrants, as required under the notice provisions of the warrants, of the adjustment made to the warrants as part of the arrangement.
About Vista Gold Corp.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The Company's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Mt. Todd project in Australia, the Amayapampa project in Bolivia and the Awak Mas project in Indonesia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
First Call Analyst:
FCMN Contact:
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Year-End Financial Results
Vista Gold Corp. (AMEX: VGZ) Toronto announced today its financial results for the year ended December 31, 2006, as filed on March 15, 2007, with the U.S. Securities and Exchange Commission in Vista's Annual Report on Form 10-K. For the year ended December 31, 2006, Vista reported a consolidated net loss of US$4.2 million or US$0.16 per share compared to the 2005 consolidated net loss of US$4.6 million or US$0.24 per share. The decrease of US$0.4 million in the net loss for 2006 is primarily due to increased interest income of US$1.0 million resulting from an increase in interest earned on Vista's liquid bank account and the Hycroft restricted cash account, partially offset by increased corporate administration and investor relations costs of US$0.6 million.
Vista received net cash from financing activities of US$54.3 million in 2006 compared to US$7.9 million in 2005. The US$54.3 million in 2006 consisted primarily of net proceeds of US$3.2 million from a February, 2006 equity private placement; net proceeds from exercises of warrants aggregating US$22.7 million; and net proceeds of US$29.4 million from a public offering of common shares in November 2006.
Net cash used in investing activities in 2006 was US$4.2 million compared to US$8.4 million in 2005. The decrease of US$4.2 million can be attributed to a decrease of US$5.6 million for the acquisitions of subsidiaries net of cash, reflecting the cash expended as partial consideration for the acquisition of the Mt. Todd gold mine for US$1.3 million in 2006, compared to expenditures during 2005 of US$1.6 million for the acquisition of the Awak Mas project and US$5.3 million cash expended as partial consideration for the acquisition of F.W. Lewis, Inc. properties. This decrease is offset by an increase in property expenditures during 2006 of US$1.1 million. Net cash used for operations in both 2006 and 2005 was US$3.4 million. The unused cash received from financing activities in 2006 is on hand as working capital.
Vista's financial position included current assets at December 31, 2006, of US$50.6 million compared to US$3.1 million at December 31, 2005 and total assets of US$92.7 million at December 31, 2006, compared to US$38.0 million at December 31, 2005. Total liabilities at December 31, 2006, were US$5.6 million compared to US$4.6 million at December 31, 2005; these liabilities included US$4.7 million in 2006 and US$4.1 million in 2005 for accrued reclamation and closure costs at the Hycroft mine which are offset by US$5.3 million in 2006 and US$5.1 million in 2005 in a restricted cash account which is included in total assets. Shareholders' equity was US$87.1 million at December 31, 2006, compared to US$33.4 million at December 31, 2005. Vista's working capital as of December 31, 2006, was US$49.8 million which increased by US$47.2 million from US$2.6 million as of December 31, 2005.
Of Vista's current working capital, Vista anticipates investing US$25 million in common stock of Allied Nevada Gold Corp. ("Allied Nevada") in connection with the previously announced arrangement transaction involving Vista, Allied Nevada and Carl and Janet Pescio (the "Pescios"). Allied Nevada will use US$15 million of this investment as partial consideration for the purchase of the Pescios' Nevada mineral assets. As part of the transaction, Vista shareholders will exchange each of their Vista common shares and will receive, subject to applicable withholding taxes, (i) one new Vista common share and (ii) a pro rata portion of (A) the number of Allied Nevada common shares received by Vista as part of the arrangement less (B) the number of Allied Nevada shares retained by Vista to facilitate payment of any taxes payable in respect of the arrangement. Holders of Vista options will exchange their options for options to acquire Allied Nevada shares and options to acquire newly created Vista shares, and holders of Vista warrants will have their warrants adjusted in accordance with the terms of the warrants. In November 2006, Vista received the securityholder and court approvals required as conditions for completion of the transaction. Subject to receipt of the remaining required approvals, as well as completion of the registration of Allied Nevada's common shares under the United States Securities Exchange Act of 1934, the transaction is currently expected to close in the first quarter or early second quarter of 2007.
Selected Financial Data
Years ended December 31
U.S. $ 000's, except loss per share 2006 2005
Results of operations
Net loss $(4,171) $(4,584)
Basic and diluted loss per share $(0.16) $(0.24)
Net cash used in operations $(3,431) $(3,379)
Net cash used in investing activities (4,177) (8,448)
Net cash provided by financing activities 54,279 7,938
Financial position
Current assets $50,643 3,094
Total assets 92,731 37,999
Current liabilities 893 452
Total liabilities 5,604 4,596
Shareholders' equity 87,127 33,403
Working capital $49,750 $2,642
The annual general meeting of Vista's shareholders has been scheduled for Monday, May 7, 2007, at 10:00 a.m., Vancouver time, at the offices of Borden Ladner Gervais LLP, located at Suite 1200, 200 Burrard Street, Vancouver, British Columbia, Canada.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. Vista's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F. W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Amayapampa project in Bolivia, the Awak Mas project in Indonesia and the Mt. Todd project in Australia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein including risks that Vista may be unable to obtain required third party approvals; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier, of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Announces New Agreement With Luzon Minerals Ltd. for Option to Purchase Amayapampa Project, Bolivia
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") announced today that, subject to receipt of all necessary regulatory and other approvals, it has entered into a new agreement with Luzon Minerals Ltd. (CDNX: LZN-V) ("Luzon") with respect to the Amayapampa Project. Under the terms of the new agreement, Vista has granted to Luzon an exclusive option to purchase 90% of Vista's interest in the Amayapampa Project for a term of 18 months and subject to the exercise of the option to purchase, a right of first offer over Vista's remaining 10% interest. This agreement replaces all prior agreements between Vista and Luzon with respect to Amayapampa Project.
In consideration for the option to purchase and the right of first offer, Luzon has agreed to complete a National Instrument 43-101 compliant feasibility study by September 14, 2007, and to arrange for 100% of the Project's financing required for the construction, development and commencement of commercial mining operations at the levels recommended in the feasibility study (including all working capital), by no later than September 14, 2008. Vista may extend the delivery deadline for the feasibility study for a further six months under certain circumstances and for further consideration of US$20,000 per month to be paid by Luzon to Vista.
In addition, Vista will retain a 10% of the net proceeds interest in the Project which shall be "carried" to the point of commencement of commercial production and Luzon will grant Vista a production royalty. The net smelter return royalty will be 2.5% when gold is less than US$500 per ounce and 3.5% when gold is at or above US$500 per ounce. If the feasibility study indicates proven and probable reserves at the Amayapampa Project are greater than 685,252 ounces of gold, then the net smelter return royalties on production above 548,202 ounces of gold shall be reduced to 1.0% when gold is less than US$500 per ounce and 2.0% when the gold price is at or above US$500 per ounce.
Luzon's ability to exercise the option to purchase is subject to Luzon satisfying a number of conditions set out in the new agreement. Subject to Luzon's right to extend the term of the agreement in certain circumstances, the agreement will terminate on September 14, 2008, unless the option to purchase has been exercised by Luzon prior to such date.
Vista, based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. Vista's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Amayapampa project in Bolivia, the Awak Mas project in Indonesia, and the Mt. Todd project in Australia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; and uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Announces Extension of Deadline for Completion of Arrangement and Preparation of Updated Resource Estimate for Awak Mas Gold Project, Indonesia
Vista Gold Corp. (AMEX: VGZ) Toronto ("Vista") announced today that the deadline for completion of the previously announced arrangement involving Vista, Allied Nevada Gold Corp. ("Allied Nevada") and Carl and Janet Pescio has been extended to April 30, 2007. The arrangement, if completed, will result in Vista transferring its existing Nevada properties to Allied Nevada, which will concurrently acquire the Nevada mineral assets of Carl and Janet Pescio. The closing of the transaction is subject to the satisfaction or waiver of a number of conditions customary in a transaction of this nature. Among the conditions is the registration of Allied Nevada's common stock under the U.S. Securities Exchange Act of 1934. To this end, Allied Nevada filed a registration statement on Form 10 with the U.S. Securities and Exchange Commission, has amended the registration statement in response to the Commission's comment and is currently awaiting the Commission's response. The registration will not be complete until the comment process has concluded, which Vista currently anticipates will occur during the first quarter of 2007, with the transaction expected to close shortly thereafter.
In other news, Vista has retained Gustavson Associates LLC ("Gustavson") of Boulder, Colorado, to prepare an updated resource estimate on the Vista's Awak Mas deposit on South Sulawesi Island in Indonesia in accordance with Canadian National Instrument 43-101 standards. The new resource estimate will incorporate the results of the drilling program completed by Vista at the project late last year, which consisted of 13 core holes totaling 8,440 feet of drilling. Vista intends to complete a feasibility study on the project during 2007.
About Vista Gold Corp.
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The Company's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Mt. Todd project in Australia, the Amayapampa project in Bolivia and the Awak Mas project in Indonesia.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein including risks that Vista may be unable to obtain required third party approvals; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Gregory G. Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Results From a Preliminary Assessment of Its Mt. Todd Gold Project, Northern Territory, Australia
Vista Gold Corp. (AMEX: VGZ) Toronto is pleased to announce results from a preliminary assessment at its Mt. Todd project in Northern Territory, Australia, that was completed on December 29, 2006, by Gustavson Associates LLC ("Gustavson") of Boulder, Colorado, in accordance with Canadian National Instrument 43-101 standards under the direction of John W. Rozelle, P.G., an independent qualified person. This preliminary assessment entitled "Preliminary Economic Assessment Mt. Todd Gold Project, Northern Territory, Australia" dated December 29, 2006, has been filed on SEDAR by Vista.
The Mt. Todd project is 50 kilometers north of Katherine, and approximately 250 kilometers southeast of Darwin. Based on a review of project files, Vista management believes that approximately 24.6 million tonnes grading 1.05 grams per tonne gold and containing 826,000 ounces of gold were extracted between 1996 and the termination of mining in 2000. Processing was by a combination of heap-leach production from oxide ore and cyanidation of sulfide ore. The remaining mineral resource consists of sulfide mineralization lying below and along strike of the existing open pit.
Gustavson had estimated mineral resources in a report entitled "Report NI 43-101 Technical Report on the Mount Todd Gold Project, Northern Territory, Australia" dated June 26, 2006, in compliance with NI 43-101 standards, the results of which were previously reported by Vista in a press release dated June 26, 2006. Based on the June 2006 report, the gold resources for the Batman deposit, reported at a cutoff grade of 0.5 grams of gold per tonne and shown in metric units are:
Tonnes Grade Contained Gold
(000s) (grams per tonne) Ounces
Measured resources (1) 18,421 0.97 576,130
Indicated resources (1) 37,957 0.97 1,181,620
Measured and indicated
resources (1) 56,378 0.97 1,757,750
Inferred resources (2) 50,053 0.93 1,503,194
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured resources"
and "indicated resources". We advise U.S. investors that while these
terms are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
(2) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission does
not recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally mineable.
In undertaking the preliminary assessment, Gustavson considered the economic and technical parameters associated with development of the mineral resources by open-pit mining. The study included a conceptual process flowsheet developed by Resource Development Inc. of Wheat Ridge, Colorado, which is based on preliminary testwork and includes a flotation circuit to recover a bulk sulfide concentrate, and further flotation to separate a copper sulfide concentrate that would contain about one-half of the gold and which would be shipped to a smelter. A pyrite concentrate containing about one-half of the gold would also be produced and this concentrate would be cyanide leached to recover the gold. The cyanide in the sulfide residue would be neutralized, following which the residue would be filtered to dry it, and then placed on a lined pad. MWH Australia Pty Ltd ("MWH") designed conceptual tailing disposal facilities, including utilizing the existing tailing facility, and estimated capital costs for these facilities. MWH also completed a closure study and cost estimate for closing the mine and facilities following resumption of production.
In the preliminary assessment, Gustavson assumed a 30,000 metric tonne-per-day (10.65 million metric tonne-per-year) ore production rate, resulting in a ten-year operating life. Overall gold recovery is estimated at 87% and copper recovery at 70%. Using a gold price of US$600 per ounce and a copper price of US$2.00 per pound, the mineable resources are as shown in the following table in metric units.
PRELIMINARY ASSESSMENT STUDY
Classification of Mineable Resources (US$600 per oz Au and US$2.00 per lb
Copper Designed Pit)
December 2006
Class Ore Average Contained Total Total Stripping
Tonnes Gold Gold Waste Tonnes Ratio
(x 1000) Grade (oz) Tonnes (x 1000) (W:O)
(gm/t) (x 1000)
Measured
resources (1) 20,521.1 0.902 595,036 -NA- -NA- -NA-
Indicated
resources (1) 41,182.9 0.908 1,202,307 -NA- -NA- -NA-
Inferred
resources (2) 45,947.5 0.923 1,363,645 -NA- -NA- -NA-
187,118 294,769 1.74
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured resources"
and "indicated resources". We advise U.S. investors that while these
terms are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
(2) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This table uses the term "inferred resources". We advise
U.S. investors that while this term is recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission does
not recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. U.S. investors are
cautioned not to assume that any part or all of an inferred resource
exists or is economically or legally mineable.
Startup capital is estimated at US$264 million. Mining costs are estimated at US$1.21 per tonne of material mined, processing costs are estimated at US$6.48 per tonne of ore processed and general and administrative costs are estimated at US$0.14 per tonne processed.
Gustavson prepared cash flow economic analyses and sensitivity studies for gold prices of US$500, US$600, and US$700 per ounce and plus and minus 20 percent for operating and capital costs. According to the Gustavson study, at long-term average gold prices over US$532 per ounce, the project appears to be viable. The base case of US$600 per gold ounce has an approximate pre-tax Discounted Cash Flow Rate of Return (DCFROR) of 17 percent. Net cash flow is estimated at US$178 million.
The "preliminary assessment" is preliminary in nature and includes inferred mineral resources (43% inferred and 57% measured and indicated) that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Mike Richings, President and CEO, commented, "The results of the Gustavson study confirm our original concept that with appropriate proven technology, Mt. Todd could be developed under current economic conditions. During 2007, we have planned a substantial program of drilling and engineering which we believe will add substantially to the value of the project. Our drilling program will have two goals: to convert inferred resources in the Batman pit area to measured and indicated, and to add new resources to the project. Our review of the Gustavson study shows the reason that the inferred resources in the pit are classified as inferred rather than measured and indicated is because the drill hole sampling density is insufficient. The 2007 drilling program commencing in February is designed to increase the sampling density and upgrade inferred resources to measured and indicated resources. The study also shows that the potential to extend the resources along strike is good and again the 2007 program will be an initial test of this potential. The samples obtained from the drilling will also be used to gather geotechnical data for pit wall design, to waste rock characterization and for metallurgical testwork to optimize the process flow sheet. If the results of the drilling and engineering program are favorable, we expect this information will lead to an updated feasibility study and the estimation of mineable reserves."
With regard to some of Vista's other projects, Mr. Richings noted, "Vista will be undertaking substantial programs at each of its four most advanced development projects in 2007. These programs will include infrastructure engineering at Paredones Amarillos, additional engineering and field work at Yellow Pine, a feasibility study on the development of Awak Mas and the work at Mt. Todd described above. These four projects are clearly attractive developments at current gold prices and we believe that our planned programs will add substantial value to these projects and accordingly, to Vista."
Further, Mr. Richings said, "The uncertainty over the timing of the proposed arrangement involving the creation of Allied Nevada Gold Corp., which, as previously announced, has taken longer than expected due to the complicated regulatory process, has made it difficult for the market to fully the appreciate the full value of Vista. However, we believe our shareholders will see the full value of this strategy when the proposed arrangement is complete, through the creation of one of the best gold exploration and development opportunities in Nevada in Allied Nevada, with Vista shareholders still retaining a superior option on the price of gold in Vista with its portfolio of large advanced gold development projects."
Vista Gold Corp., based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The Corporation's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de Los Reyes projects in Mexico, the Amayapampa project in Bolivia, the Awak Mas project in Indonesia, and the Mt. Todd project in Australia.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of Vista's or Allied Nevada's businesses, operations, plans and other such matters are forward-looking statements. When used in this press release, the words "estimate", "plan", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista and Allied Nevada, including anticipated consequences of the contemplated transaction described herein, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that Vista's or Allied Nevada's acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; potential effects on Vista's or Allied Nevada's operations of environmental regulations in the countries in which they operate; risks due to legal proceedings; uncertainty of being able to raise capital on favorable terms or at all; and risks that may affect Vista's ability to complete the contemplated transaction described herein including risks that Vista may be unable to obtain required third party approvals; as well as those factors discussed in Vista's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents filed with the U.S. Securities and Exchange Commission. Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Vista assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
