Vista Gold Corp. Acquires Hycroft Mine Royalty and Ownership Interest in 53 Properties in Nevada and Colorado
Vista Gold Corp. (Amex: VGZ; TSX) announces that on December 13, a subsidiary of Vista acquired all of the outstanding shares of F.W. Lewis, Inc., the assets of which include 55 mineral properties in Nevada and Colorado. The acquisition was made by exercise of a purchase option originally held by Century Gold LLC of Spring Creek, Nevada. Century Gold assigned the option to Vista pursuant to an assignment and assumption agreement effective December 9, 2005. Under the terms of the assignment agreement, Vista paid Century Gold U.S. $150,000 in cash and also reimbursed it for the U.S. $250,000 it paid the owners of F.W. Lewis, Inc. toward the option exercise price of U.S. $5.1 million. In addition, subject to regulatory approval, Vista has agreed to issue to Century Gold 250,000 common shares of Vista. To complete the exercise of the option, Vista paid the owners of F.W. Lewis, Inc., the remaining U.S. $4.85 million of the outstanding purchase price. Century Gold will retain a 100% interest in two properties and a 50% interest in two other properties. The 53 properties to be retained by Vista include a total of 9,280 acres of patented and 11,616 acres of unpatented mineral claims, the majority having gold, silver or copper discoveries or old mines located on the properties.
F.W. Lewis, Inc. owns a production royalty interest in the Hycroft Mine. The production royalty (applying to approximately 70% of the reported reserves) was 5% Net Smelter Return (NSR) on gold and 7.5% NSR on other minerals, including silver. The production royalty on gold escalated on ore over 0.05 ounces per ton (opt) to a maximum of 10% NSR on ore grades over 0.14 opt. The Hycroft Mine has been leased by a subsidiary of Vista and the production royalty payable to F.W. Lewis, Inc. will no longer apply by virtue of this acquisition. Vista (or predecessor companies) operated the Hycroft Mine, producing 1,075,000 ounces of gold from 1987 to 1998, when operations were suspended due to low gold prices. In September 2004, Vista reported results of an updated feasibility study for the Hycroft Mine by Mine Development Associates (MDA) of Reno, Nevada, an independent consulting firm, in accordance with Canadian National Instrument 43-101 guidelines. The study was filed on SEDAR on September 22, 2004. As reported by Vista, the study estimated mineral reserves using a U.S. $375 gold price at 32.4 million tons at 0.0175 opt of gold, for 566,500 ounces of contained gold. Also, as reported in the study but not separately reported by Vista, it was estimated that from the 566,500 ounces of contained gold, 358,000 ounces could be produced together with 1,433,000 ounces of silver.
Included in the package (100% retained by Vista) is a property in the Battle Mountain, Nevada Mining District, adjacent to and on trend with Newmont's Phoenix-Fortitude property, although similar mineralization cannot be assured. This property is subject to pre-existing agreements with Madison Minerals Inc. (formerly Madison Enterprises Corp.) and Great American Minerals Exploration (Nevada), LLC. These agreements involve payments of U.S. $3,000 per month minimum royalty payments to F.W. Lewis, Inc., minimum exploration commitments of U.S. $250,000 per year, and an option to purchase the property for U.S. $2.0 million payable by December 31, 2007, with a retained 5% gross royalty on gold and a 4% NSR royalty on other metals, and with annual advance minimum royalty payments of U.S. $60,000 commencing on exercise of the purchase option. Madison and Great American also have an option to purchase the royalties from F.W. Lewis, Inc. for U.S. $4.0 million in the first year following the date of exercise of the purchase option and escalating by U.S. $500,000 each year thereafter.
Mike Richings, Vista President and CEO, commented, "We are very pleased to have purchased the Hycroft royalty and ownership interest. It is no secret that we believe the Lewis royalty has deterred major mining companies from entering into an arrangement to explore the deep, high-grade potential of the Hycroft deposit. Additionally, we anticipate that the purchase of the Lewis interest at Hycroft will significantly improve the overall economics of restarting operations at the Hycroft mine. At recent prices of $500 and $8 per ounce for gold and silver, respectively, the royalty would be worth US$6.9 million on 70% of the potential production of 358,000 ounces of gold and 1,433,000 ounces of silver from the reported mineral reserves. We are currently updating last year's National Instrument 43-101 study to reflect today's higher gold prices, the increased measured and indicated resource estimate (reported August 4, 2005) and current cost data. We also look forward to the opportunities that this excellent package of exploration properties will afford to Vista to increase value for our shareholders."
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, in addition to the properties newly acquired with the acquisition of F.W. Lewis, Inc., the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects and 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 and the Awak Mas project in Indonesia.
Cautionary Note to U.S. Investors concerning estimates of Proven and Probable Reserves: Estimates of mineral reserves herein have been prepared in accordance with Canadian National Instrument 43-101. The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Accordingly, the Corporation's disclosure of mineral reserves herein may not be comparable to information from U.S. companies subject to the SEC's reporting and disclosure requirements.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Third Quarter Financial Results
Vista Gold Corp. (Amex: VGZ; TSX) announced today its financial results for the quarter and nine months ended September 30, 2005, as filed on November 14, 2005, with the US Securities and Exchange Commission in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended September 30, 2005, of US$1.0 million or US$0.05 per share compared to a consolidated net loss of US$1.0 million or US$0.07 per share for the same period in 2004. The Corporation's consolidated net loss for the nine-month period ended September 30, 2005, was US$3.4 million or US$0.19 per share compared to a consolidated net loss of US$3.6 million or US$0.23 per share for the same period in 2004. The net losses for the three-month and nine-month periods were minimally different from those for the prior-year periods, primarily reflecting slight decreases in exploration, property evaluation and holding costs, and slight increases in corporate administration and investor relations costs in each of the three-month and nine-month periods.
Net cash used for operations was US$957,000 for the three-month period ended September 30, 2005, compared to US$1,122,000 for the same period in 2004. Cash used in operations was US$2,776,000 for the nine-month period ended September 30, 2005, compared to US$2,777,000 for the same period in 2004. The decrease of US$165,000 for the three-month period can be attributed to reduction in accounts receivable of US$181,000 from the same period in 2004.
Net cash used for investing activities decreased to US$533,000 for the three-month period ended September 30, 2005, compared to US$1,618,000 for the same period in 2004. The decrease of US$1,085,000 in 2005 reflected the restricted cash payment of US$1,104,000 in 2004. For the nine-month period ended September 30, 2005, net cash used for investing activities decreased by US$1,364,000 to US$2,761,000 compared to US$4,125,000 for the same period in 2004. Overall expenditures were higher during the 2004 period, primarily reflecting the restricted cash payment of US$3.4 million made by the Corporation in the first nine-months of 2004, in connection with bonding requirements for the Hycroft Mine. Cash invested for the nine-month period ended September 30, 2005 was US$2,761,000 which included net additions to mining properties of US$1,057,000 and the acquisition of the Awak Mas project, net of cash acquired, of US$1,613,000.
Net cash provided by financing activities was US$7,245,000 in the three-month period ended September 30, 2005 compared to US$6,427,000 for the same period in 2004. In each of these periods, the Corporation raised funds through private placements of equity units, with net proceeds of US$7,245,000 from the 2005 private placement and US$6,112,000 from the 2004 private placement. Net cash provided by financing activities was US$7,643,000 for the nine-month period ended September 30, 2005, compared to US$9,483,000 for the same period in 2004. The amounts raised in the 2005 nine-month period were primarily from the US$7,245,000 raised in the private placement and the remainder from the exercise of warrants in the amount of US$373,000 and stock options in the amount of US$25,000. The aggregate US$9,483,000 proceeds in the 2004 nine-month period were primarily from the US$6,112,000 raised in the private placement and from the exercise of warrants in the amount of US$3,039,000 and stock options in the amount of US$332,000.
The financial position of the Corporation included current assets at September 30, 2005, of US$8.9 million compared to US$6.8 million at December 31, 2004, and total assets at September 30, 2005, of US$37.3 million compared to US$32.8 million at December 31, 2004.
Current liabilities were US$0.2 million at September 30, 2005, approximately the same as at December 31, 2004. Total liabilities at September 30, 2005, were US$4.5 million, compared to US4.4 million at December 31, 2004. Shareholders' equity at September 30, 2005, was US$32.9 million compared to US$28.3 million at December 31, 2004.
The Corporation's working capital as of September 30, 2005, was US$8.6 million compared to US$6.6 million at December 31, 2004.
The selected financial data including the results of operations for the three-month and nine-month periods ended September 30, 2005 compared to 2004, and the financial positions as at September 30, 2005 compared to December 31, 2004, is summarized in the following table:
Selected Financial Data Three Months Ended, Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
U.S. $000's, except
loss per share
Results of operations
Net loss $(970) $(1,047) $(3,378) $(3,584)
Basic and diluted
loss per share (0.05) (0.07) (0.19) (0.23)
Net cash used in operations (957) (1,122) (2,776) (2,777)
Net cash used in
investing activities (533) (1,618) (2,761) (4,125)
Net cash provided by
financing activities (7,245) 6,427 7,643 9,483
Financial position September 30, December 31,
2005 2004
Current assets $8,846 $6,826
Total assets 37,328 32,788
Current liabilities 238 256
Total liabilities 4,469 4,444
Shareholders' equity 32,859 28,344
Working capital 8,608 6,570
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Amendments to Agreement to Sell Amayapampa, and the Appointment of Vice President, Exploration
Vista Gold Corp. (Amex: VGZ; TSX) announces that it has agreed with Luzon Minerals Ltd. (TSX: LU), subject to regulatory approval, to further amend certain of the terms of the purchase option agreement between the companies concerning Vista's Amayapampa gold project in Bolivia. The agreement was most recently amended in July 2005, as previously announced.
The agreement as amended on July 18, 2005, as previously reported, called for an aggregate purchase price comprising: U.S. $2,700,000 (including U.S. $100,000 previously paid); either 3,250,000 or 4,250,000 common shares in the capital of Luzon (including 250,000 already issued to Vista); 1,000,000 common share purchase warrants; and a net smelter return royalty.
The following amendments have been approved:
* The number of Luzon common share warrants to be issued has been
increased from 1,000,000 to 1,500,000, the exercise price has been
reduced from CDN $0.20 to CDN $0.15, and the exercise period has been
reduced from three to two years from the date of issuance. As well,
the new agreement now provides that if the closing trading price of
Luzon common shares equals or exceeds CDN $0.25 for 20 consecutive
trading days, Luzon may request that Vista exercise the warrants, in
which case the exercise period would conclude 15 business days
following the request.
* Vista has agreed to defer a U.S. $100,000 cash payment from Luzon
from the earlier of December 31, 2005 or the date of the closing of
the next debt, equity or other financing completed by Luzon until the
earlier of December 1, 2006 or the date Luzon completes or obtains
financing sufficient to commence construction at the Amayapampa
Project.
Other terms of the agreement remain unchanged.
Mike Richings, Vista President and CEO, stated "We are pleased with the progress that the new management at Luzon is making with the Amayapampa Project. We believe these amendments will facilitate their efforts to advance Luzon and the development of the project."
On another matter, the Corporation is pleased to announce the appointment of Mr. Robert V. Perry as Vice President, Exploration. He has 25 years of exploration experience in North America and internationally, and has been involved in a number of start-up exploration companies. He was Vice President and COO of Gold Discovery Company of Golden, Colorado, which successfully made several gold discoveries in Romania and was involved in exploring Ecuador and Uzbekistan. Earlier in his career, Bob discovered the Beartrack gold deposit in Idaho, which became a major gold mining project, and is credited with additional discoveries. He holds B.A. and M.S. degrees in geology from the University of Colorado.
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 and 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, and the Awak Mas project in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 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 Corp. Announces Updated Feasibility Study for the Paredones Amarillos Gold Project, Mexico
Vista Gold Corp. (AMEX: VGZ) Toronto is pleased to announce the results of an updated preliminary feasibility study for the Paredones Amarillos gold project in Baja California Sur, Mexico. A feasibility study was previously completed by Echo Bay Mines in 1997. The updated study was issued on September 23, 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. MDA was assisted in the effort by Resource Development Incorporated (RDi) of Wheat Ridge, Colorado, in metallurgical testing and process redesign, and by WLR Consulting (WLR) of Lakewood, Colorado, in mine design.
Proven and probable mineral reserves were determined within a proposed open pit mine, which was designed employing a Lerchs-Grossmann optimization technique based on U.S. $400 per ounce gold price. The results are summarized in the following table.
Paredones Amarillos Mineral Reserve Estimate
(0.38 g/t gold internal cutoff grade)
Ore Tonnes Gold Grade Contained Waste Tonnes Strip Ratio
(000's) (Fire Assay Gold Ounces (000's) (Waste : Ore)
g/t)
Proven 11,699 1.11 419,000
Probable 37,247 0.97 1,158,000
Totals 48,946 1.00 1,577,000 170,292 3.48
The capital and operating costs were estimated by MDA with the assistance of RDi and WLR. Mining plans were prepared and a schedule generated detailing annual production of ore and waste, by WLR. Appropriate mining equipment was selected and requirements estimated for the proposed life of the operation. RDi completed metallurgical test work and process plant design for the proposed 11,000 tonne per day flotation/leach plant. The proposed flow sheet is estimated to achieve a 90% process recovery on gold and to minimize process water and tailings disposal expense. The plant is designed to produce an average of 113,000 gold ounces per year over 12.5 years.
Using a gold price of U.S. $400 per ounce, the estimated pretax rate of return was 4% and the undiscounted cash flow was estimated to be U.S. $37 million. Sensitivity analyses show the estimated pretax rate of return rises to 12% and the estimated undiscounted cash flow rises to U.S. $122 million at a gold price of U.S. $460.
An alternate mining plan was designed to enhance the return on investment. The smaller mine operation improved the estimated pretax rate of return at a gold price of U.S. $400 per ounce to 7% and the estimated undiscounted cash flow to U.S. $41 million. At a gold price of U.S. $460 per ounce, the estimated pretax rate of return was 17% and the estimated undiscounted cash flow was U.S. $107 million.
The resource model used to estimate the mineral reserves was reported by the Corporation in a press release dated August 29, 2002, based on an independent technical report prepared by Snowden Mining Industry Consultants of Vancouver, British Columbia, in compliance with Canadian National Instrument 43-101. According to the report, dated August 20, 2002, the gold resources above a 0.5 grams gold per tonne cut-off at the Paredones Amarillos project are:
Paredones Amarillos
Resource Estimate Tonnes Gold Grade Ounces of Gold
(0.5 g/t Au cutoff) (000's) (g/t) (000's)
Measured resources (1) 11,498 1.17 431
Indicated resources (1) 44,170 1.02 1,451
Total measured and
indicated resources (1) 55,668 1.05 1,882
Inferred resources (2) 5,495 0.79 140
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This table uses the terms "measured 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) 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, 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.
Mike Richings, President and CEO, commented, "Our strategy to acquire out-of-the-money gold resources and hold them for higher gold prices while improving the economics through re-engineering is beginning to show positive results as at Paredones Amarillos. This updated prefeasibility study showed an increase in proven and probable reserves of 290,000 gold ounces and indicates an attractive economic return at current gold prices."
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 and 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, and the Awak Mas deposit in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Closing of U.S. $7.8 Million Private Placement
Vista Gold Corp. (AMEX: VGZ) Toronto is pleased to announce the closing of the private placement previously announced on August 26, 2005. The Corporation raised gross proceeds of U.S. $7,807,723 from the sale of 2,168,812 units priced at U.S. $3.60 per unit. Each unit consists of one common share and one warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of U.S. $4.10 for a period of two years from the date of issue.
Vista is to register for resale, under the U.S. Securities Act of 1933, the common shares issued in the placement, as well as the common shares issuable upon the exercise of warrants. The warrants have a provision for accelerating their expiry date as follows: starting six months after the share registration is declared effective, if the closing price of Vista's common shares on the American Stock Exchange is U.S. $5.40 or more for a period of 20 consecutive trading days, then for 15 business days Vista will have the option to request that the warrants be exercised. If the warrants are not exercised within 15 business days following this request, they will be cancelled.
The Corporation paid a cash finder's fee equal to 6% of the gross proceeds of the private placement and also issued as a finder's fee 216,881 warrants, that number being 10% of the number of units issued in the private placement.
"The proceeds of this private placement will allow us to continue with our strategy of acquiring additional gold resources, as suitable opportunities arise; improving our gold projects through additional drilling, re-engineering and feasibility studies; and to pay on-going administration costs," said Mike Richings, President and Chief Executive Officer.
The securities described above have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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, Hycroft and Wildcat projects 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, and the Amayapampa project in Bolivia and the Awak Mas project in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Proposed U.S. $7.8 Million Private Placement
Vista Gold Corp. (AMEX: VGZ) Toronto announces that, subject to regulatory approval, it plans to undertake a private placement financing which, if completed, will raise gross proceeds of up to approximately U.S. $7.8 million from the sale of up to 2.16 million units priced at U.S. $3.60 per unit. The proceeds will be used for the acquisition of additional projects, if suitable opportunities arise, maintenance and evaluation of current projects and on-going administration costs. Each unit will consist of one common share and one warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of U.S. $4.10 for a period of two years from the date of issue.
The terms of the private placement will require Vista to register for resale, under the U.S. Securities Act of 1933, the common shares issued in the placement, as well as the common shares issuable upon the exercise of warrants. Starting six months after the share registration date, if the closing price of Vista's common shares on the American Stock Exchange is U.S. $5.40 or more for a period of 20 consecutive trading days, then for 15 business days Vista will have the option to request that the warrants be exercised. If the warrants are not exercised within 15 business days following this request, they will be cancelled.
The Corporation will pay a cash finder's fee equal to 6% of the gross proceeds of the private placement and a finder's fee payable in warrants in number equivalent to 10% of the number of units issued in the private placement.
The securities described above have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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 and 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 and the Awak Mas project in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Second Quarter Financial Results and Drilling Results at Paredones Amarillos Project
Vista Gold Corp. (Amex: VGZ; TSX) announced today its financial results for the quarter and six months ended June 30, 2005, as filed on August 12, 2005, with the US Securities and Exchange Commission in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended June 30, 2005, of US$1.5 million or US$0.08 per share compared to a consolidated net loss of US$1.4 million or US$0.09 per share for the same period in 2004. The Corporation's consolidated net loss for the six-month period ended June 30, 2005, was US$2.4 million or US$0.13 per share compared to a consolidated net loss of US$2.5 million or US$0.17 per share for the same period in 2004. The net losses for the three-month and six-month periods were minimally different from those for the prior-year periods, primarily reflecting slightly decreased exploration, property evaluation and holding costs, and increased corporate administration and investor relations costs of US$0.1 million for the three-month period due to a mass mailing marketing campaign, with slightly decreased costs for the six-month period.
Net cash used for operations was US$1,127,000 for the three-month period ended June 30, 2005, compared to US$1,207,000 for the same period in 2004. Cash used in operations was US$1,819,000 for the six-month period ended June 30, 2005, compared to US$1,655,000 for the same period in 2004. The decrease of US$80,000 for the three-month period can be attributed to reduction in prepaid expenses and accounts payable and accruals of US$99,000 for the same period in 2004. The increase of US$164,000 for the six-month period was attributable to a reduction in accounts receivable for the same period in 2004.
Net cash used for investing activities increased to US$1,964,000 for the three-month period ended June 30, 2005, compared to US$70,000 for the same period in 2004. The increase of US$1,894,000 in 2005 was due to the purchase of the Awak Mas project in May 2005 for US$1.5 million and exploration activities at the Paredones Amarillos project of US$0.4 million. For the six- month period ended June 30, 2005, net cash used for investing activities decreased by US$279,000 to US$2,228,000 compared to US$2,507,000 for the same period in 2004. Overall expenditures were higher during the 2004 period, primarily reflecting the restricted cash payment of US$2.3 million made by the Corporation in the first quarter of 2004, in connection with bonding requirements for the Hycroft Mine.
The Corporation did not receive any cash from financing activities for the three-month-period ended June 30, 2005, compared to US$853,000 for the same period in 2004, all of which was attributable to the exercise of warrants. Net cash provided by financing activities was US$398,000 for the six-month period ended June 30, 2005, compared to US$3,056,000 for the same period in 2004. The amounts raised in the 2005 six-month period were from the exercise of warrants in the amount of US$373,000 and stock options in the amount of US$25,000, all during the first quarter. The aggregate US$3,056,000 proceeds in the 2004 six-month period were from the exercise of warrants in the amount of US$3,039,000 and stock options in the amount of US$17,000.
The financial position of the Corporation included current assets at June 30, 2005, of US$3.0 million compared to US$6.8 million at December 31, 2004, and total assets at June 30, 2005, of US$31.0 million compared to US$32.8 million at December 31, 2004.
Current liabilities were US$0.3 million at June 30, 2005, approximately the same as at December 31, 2004. Total liabilities at June 30, 2005, were US$4.5 million, compared to US4.4 million at December 31, 2004. Shareholders' equity at June 30, 2005, was US$26.5 million compared to US$28.3 million at December 31, 2004.
The Corporation's working capital as of June 30, 2005, was US$2.7 million compared to US$6.6 million at December 31, 2004.
The June 30, 2005 unaudited consolidated financial statements have been prepared on a going concern basis, which assumes that the Corporation will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Corporation's current working capital is not sufficient to satisfy current general and administrative activities, holding costs and property obligations which will be approximately US$3.2 million over the next twelve months. The Corporation may raise funds through warrant exercises or private placements, or may joint venture one or more of its properties. The Corporation has successfully raised money to support its activities in the past; however, there are no assurances that the Corporation will be able to raise sufficient funds from these sources in the future.
The selected financial data including the results of operations for the three-month and six-month periods ended June 30, 2005 compared to 2004, and the financial positions as at June 30, 2005 compared to December 31, 2004, is summarized in the following table:
Selected Financial Data
Three Months Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
U.S. $000's, except
loss per share
Results of
operations
Net loss $(1,450) $(1,391) $(2,408) $(2,537)
Basic and diluted
loss per share (0.08) (0.09) (0.13) (0.17)
Net cash used
in operations (1,127) (1,207) (1,819) (1,655)
Net cash used
in investing
activities (1,964) (70) (2,228) (2,507)
Net cash provided
by financing
activities -- 853 398 3,056
Financial position June 30, December 31,
2005 2004
Current assets $2,993 $6,826
Total assets 31,040 32,788
Current liabilities 302 256
Total liabilities 4,534 4,444
Shareholders' equity 26,506 28,344
Working capital 2,691 6,570
The Corporation recently received assay results of a drill program to explore the Tocopilla area north of the Paredones Amarillos gold deposit in Baja California Sur, Mexico. The drilling confirmed the presence of mineralization and a structure similar to that which hosts the Paredones Amarillos deposit. No drill intercepts of ore grade quality were found, however the sampling helped to identify and locate favorable targets for follow up programs. The drill program was conducted under the supervision of Warren Bates, previously Vista's Chief Geologist (P. Geo.), and assaying was done by ALS Chemex of Hermosillo, Sonora, Mexico. Additional targets remain to be drill tested.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Canyon Resources Corporation Elects Not to Exercise Hycroft Option, New Hycroft Resource Estimate Reports 30% Increase in Measured and Indicated Gold Resources
Vista Gold Corp. (AMEX: VGZ) Toronto announces that Canyon Resources Corporation (AMEX: CAU) has advised Vista that Canyon will not be exercising its option to acquire the Hycroft mine near Winnemucca, Nevada. In January 2005, Canyon entered into a six month option agreement with Vista to expend US$0.5 million for drilling, engineering and due-diligence review to acquire the mine for US$4.0 million in cash plus US$6.0 million in Canyon equity units consisting of one common share and one warrant for half a share.
Canyon completed a 33-hole drilling program totaling 12,475 feet and undertook a comprehensive study to restart operations at Hycroft. Assaying was done by American Assay Laboratories of Sparks, Nevada. The drilling program confirmed average grades for the ore body but Canyon noted that increased costs, as well as shortages of labor and large mining equipment were contributing factors in its decision not to proceed. Vista received the data from Canyon's work at the time of notification and has not completed a review of all the information. However, a resource study in accordance with Canadian National Instrument 43-101 guidelines was completed by Ore Reserves Engineering of Lakewood, Colorado, under the direction of Mr. Alan Noble, P. Eng., a qualified person independent of Canyon or Vista.
The re-estimation of gold resources, based on 587 drill holes with a total of 52,889 assay intervals covering 267,280 feet, resulted in increasing the measured and indicated resources at the Brimstone deposit some 30% from the previous estimate by Mine Development Associates of Reno, Nevada, as announced by Vista in September 2004. The inferred gold resources decreased slightly from the 2004 estimate to the current estimate. A comparison of the gold resource estimates is shown in the following table.
Brimstone Gold Resources
(0.005 opt cyanide-soluble gold cutoff grade)
Mine Development Associates 2004
Resource Short Fire Assay Contained
Category Tons Gold Grade Gold Ounces
(millions) (opt)
Measured 1) 23.3 0.0165 385,100
Indicated 1) 24.2 0.0153 369,400
Total M&I 47.5 0.0159 754,600
Inferred 2) 12 0.0111 133,600
Brimstone Gold Resources
(0.005 opt cyanide-soluble gold cutoff grade)
Ore Reserves Engineering 2005
Resource Short Fire Assay Contained Difference
Category Tons Gold Grade Gold Ounces
(millions) (opt)
Measured 1) 17.2 0.02 351,000
Indicated 1) 35.5 0.018 627,000
Total M&I 52.7 0.019 978,000 30%
Inferred 2) 8.7 0.015 127,000 -5%
1) Cautionary Note to U.S. Investors concerning estimates of Measured and
Indicated Resources: This table uses the terms "measured 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 feasibility 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.
Mike Richings, Vista President and CEO, commented, "Although we believe this is an excellent time for gold producers to expand or commence new gold production, we can understand Canyon's concerns over the severe inflation in mine production costs in the mining industry. One only has to look at recent results from major mining companies, which are better able to deal with inflation, to observe the impact of inflation on gold production costs. We believe this will eventually affect gold supply, accelerating the onset of higher gold prices. Vista will continue its strategy of acquiring and holding gold resource properties, while waiting for higher gold prices, when significant premiums from the sale, joint venture or gold production can be realized from these properties. Vista will continue to hold the Hycroft mine until an appropriately valued opportunity arises."
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 and 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, and the Awak Mas project in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa
Vista Gold Corp. (AMEX: VGZ) Toronto announces that it has agreed with Luzon Minerals Ltd. (TSX-V: LU), subject to regulatory approval, to further amend the terms of the original purchase option agreement between the companies concerning Vista's Amayapampa gold project in Bolivia, with respect to the payments previously due on June 15, 2005 and June 15, 2006. The agreement had been most recently amended in January 2005, in connection with Luzon's decision to exercise its option to purchase the Amayapampa project from Vista, as previously announced. Mike Richings, Vista President and CEO, stated, "We believe the amendments will facilitate Luzon arranging project financing and lead to accelerated development of the project. At the same time, we believe that the amended agreement will appropriately compensate Vista and provide us with the potential for a long-term royalty revenue stream."
The amended agreement, dated July 18, 2005, calls for an aggregate purchase price comprising: U.S. $2,700,000 (including U.S. $100,000 previously paid); either 3,250,000 or 4,250,000 common shares in the capital of Luzon (including 250,000 already issued to Vista), and 1,000,000 common share purchase warrants; and a net smelter return royalty to Vista payable as follows:
-- Within five days of receiving approval of the TSX Venture Exchange, Luzon will issue to Vista 3,000,000 Luzon common shares and 1,000,000 warrants, each warrant entitling the holder to acquire one common share of Luzon at an exercise price of CDN $0.20 for a period of three years from the date of issuance, and, on the earlier of December 31, 2005 or the date of the closing of the next debt, equity or other financing completed by Luzon after July 15, 2005, Luzon will pay to Vista U.S. $100,000 in cash.
-- Within five days of the date that is the earlier of December 31, 2006 or the date Luzon completes or obtains financing sufficient to commence construction at the Amayapampa Project, Luzon will pay to Vista U.S. $2,500,000.
-- In the event that Luzon completes a feasibility study or technical report for the Amayapampa Project that discloses recovered gold of more than 400,000 ounces, Luzon shall issue to Vista an additional 1,000,000 common shares.
-- If Luzon completes the acquisition of the Amayapampa Project, Luzon will grant Vista a net smelter return royalty as follows: (i) on the first 440,000 ounces of gold production, a 4.5% net smelter return royalty where the gold price is less than U.S. $450 per ounce and a 5.5% net smelter return royalty where the gold price is U.S. $450 per ounce or more, and (ii) thereafter, a 1.0% net smelter return royalty.
In addition, effective from July 29, 2004, Luzon will pay all costs associated with holding and maintaining the Amayapampa Project, including reimbursement of outlays made by Vista (approximately U.S. $51,000, as of June 30, 2005). Other terms of the agreement remain unchanged.
Mike Richings also commented on the new board of directors and management structure at Luzon: "We believe the recent changes in Luzon's board of directors and management, including the appointment of Scottish financier Mr. Willie McLucas as Chairman, will re-energize the company and will lead to the financing and early development of the Amayapampa Project."
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 and 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, and the Awak Mas project in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces First Quarter Financial Results and Recent Developments
Vista Gold Corp. (AMEX: VGZ) Toronto announced today its financial results for the quarter ended March 31, 2005, as filed on May 13, 2005, with the US Securities and Exchange Commission in the Corporation's Quarterly Report on Form 10-Q. For the quarter ended March 31, 2005, Vista reported a consolidated net loss of US$1.0 million or US$0.05 per share compared to a consolidated net loss of US$1.1 million or US$0.08 per share for the quarter ended March 31, 2004.
Net cash used for operations in the quarter ended March 31, 2005, was US$0.7 million compared to US$0.4 million for the same period in 2004. Net cash used in investing activities in the quarter ended March 31, 2005, was US$0.3 million compared to US$2.4 million for the same period in 2004. The decreased spending in investing activities in the 2005 quarter primarily reflected the US$2.3 million paid by the Corporation into the reclamation bond account for the Hycroft mine in Nevada in the 2004 quarter.
The Corporation received net cash from financing activities of US$0.4 million in the quarter ended March 31, 2005, compared to US$2.2 million for the same period in 2004, with the amounts in both periods representing proceeds from the exercise of warrants and options.
The financial position of the Corporation included current assets at March 31, 2005, of US$6.1 million compared to US$6.8 million at December 31, 2004, and total assets at March 31, 2005, of US$32.2 million compared to US$32.8 million at December 31, 2004.
Current liabilities were US$0.2 million at March 31, 2005, compared to US$0.3 million at December 31, 2004. Total liabilities at March 31, 2005, were US$4.4 million, approximately the same as at December 31, 2004, and shareholders' equity at March 31, 2005, was US$27.9 million compared to US$28.3 million at December 31, 2004.
The Corporation's working capital as of March 31, 2005, was US$5.9 million compared to US$6.6 million at December 31, 2004. The financial information for the first quarter of 2005 is summarized in the following table.
Selected Financial Data
Three Months Ended March 31,
U.S. $000's, except loss per share 2005 2004
Results of operations
Net loss $(958) $(1,146)
Basic and diluted loss per share (0.05) (0.08)
Net cash used in operations (692) (448)
Net cash used in investing activities (264) (2,437)
Net cash provided by financing activities 398 2,203
Financial position March 31, December 31,
2005 2004
Current Assets $6,069 $6,826
Total Assets 32,234 32,788
Current liabilities 178 256
Total liabilities 4,368 4,444
Shareholders' equity 27,866 28,344
Working capital 5,891 6,570
The annual general meeting of the Corporation's shareholders was held on May 9, 2005. 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. An amendment to the Corporation's Stock Option Plan was approved increasing the maximum number of Common Shares which may be issued under the Plan from 1,000,000 Common Shares to 1,750,000 Common Shares.
On May 12, 2005, in connection with the Corporation's purchase of the Awak Mas deposit in Indonesia, the Corporation transferred US$1.2 million to an escrow account to be placed in trust and released to the vendors upon completion of the final transaction documents.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including its latest annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Exercises Option to Purchase Awak Mas Gold Deposit, Indonesia
Vista Gold Corp. (AMEX: VGZ) Toronto is pleased to announce that its Board of Directors has approved the exercise of the purchase option for the Awak Mas gold deposit located in Sulawesi, Indonesia. As previously reported, in November 2004 Vista entered into an option agreement to acquire the Awak Mas deposit for a purchase price of U.S. $1,500,000. Under the terms of the agreement, Vista had a six-month option period in which to conduct due diligence while paying the owners U.S. $15,000 per month. The monthly option payments, as well as costs up to U.S. $150,000 expended to correct any deficiencies in asset standing, will be credited towards the purchase price. The closing is anticipated to occur on or before May 6, 2005.
Also as previously reported by the Corporation, an October 2004 resource analysis prepared by RSG Global Pty Ltd of West Perth, Australia, an independent consulting firm, in accordance with Canadian National Instrument 43-101 guidelines under the supervision of Brett Gossage, a Qualified Person, showed the known deposit, at a reported cutoff grade of 0.5 grams gold per ton, to contain measured and indicated resources of 52,580,000 short tons at a grade of 0.032 ounces per ton containing 1,656,000 gold ounces(1) and inferred resources of 8,250,000 short tons at a grade of 0.032 ounces per ton containing 259,000 gold ounces(2). The Corporation believes the potential to expand the resources is good, based on preliminary exploration results of previous operators.
Vista President and CEO Mike Richings stated "Acquiring measured and indicated resources of 1.7 million gold ounces plus an inferred resource of 0.3 million gold ounces at a cost of U.S. $1.5 million, in a project whose previous operators spent over AUD $46 million and completed a final feasibility study, is very attractive to Vista. We will be attempting to expand the gold resources by strategic exploration over the next several years and to enhance the economics of the project through engineering studies."
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 and 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, and the Awak Mas deposit in Indonesia.
(1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This press release uses the term "measured and 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 press release 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 statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Year-End Financial Results and Progress on Awak Mas Acquisition
Vista Gold Corp. (AMEX: VGZ) Toronto announced today its financial results for the year ended December 31, 2004, as filed on March 31, 2005, with the U.S. Securities and Exchange Commission in the Corporation's Annual Report on Form 10-K. For the year ended December 31, 2004, Vista reported a consolidated net loss of US$4.9 million or US$0.31 per share compared to the 2003 consolidated net loss of US$2.7 million or US$0.22 per share. The increase of US$2.2 million in 2004 is due to increased holding costs at the Hycroft Mine of US$0.6 million; decreased holding costs at the Amayapampa property of US$0.1 million; increased property exploration costs of US$0.2 million; increased general and administrative costs of US$0.5 million; and increased stock-based compensation of US$1.0 million (a non-cash item).
The Corporation received net cash from financing activities of US$9.8 million in 2004 compared to US$8.1 million in 2003. Net cash used in investing activities in 2004 was US$6.1 million compared to US$3.0 million in 2003. This increase primarily reflects US$3.3 million set aside for increased bond requirements at Hycroft in 2004, compared to US$1.7 million in 2003. Net cash used for operations in 2004 was US$3.4 million compared to US$3.0 million in 2003. The unused cash received from financing activities in 2004 is on hand as working capital.
The financial position of the Corporation included current assets at December 31, 2004, of US$6.8 million compared to US$6.5 million in 2003 and total assets of US$32.8 million at December 31, 2004, compared to US$26.3 million in 2003. Total liabilities at December 31, 2004, were US$4.4 million compared to US$4.6 million in 2003 and shareholders' equity was US$28.3 million at December 31, 2004, compared to US$21.7 million in 2003. The Corporation's working capital as of December 31, 2004, was US$6.6 million which increased by US$0.5 million from US$6.1 million in 2003.
Selected Financial Data
Years ended December 31
U.S. $ 000's, except loss per share 2004 2003
Results of operations
Net loss $(4,924) $(2,745)
Basic and diluted loss per share $(0.31) $(0.22)
Net cash used in operations $(3,351) $(3,008)
Net cash used in investing activities (6,100) (3,002)
Net cash provided by financing activities 9,847 8,087
Financial position
Current assets $6,826 $6,485
Total assets 32,788 26,280
Current liabilities 256 408
Total liabilities 4,444 4,577
Shareholders' equity 28,344 21,703
Working capital $6,570 $6,077
The annual general meeting of the Corporation's shareholders has been scheduled for Monday, May 9, 2005, at 10:00 a.m., Vancouver time, at the offices of Borden Ladner Gervais LLP, Suite 1200, 200 Burrard Street, Vancouver, British Columbia, Canada.
On another matter, Mike Richings, President and CEO, commented, "Our due diligence efforts regarding the Awak Mas property in Indonesia are proceeding on schedule and we anticipate exercising the option to acquire the property in April, following Vista's board of directors' and regulatory approvals."
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 and 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, and an option to purchase the Awak Mas project in Sulawesi in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Extension of Mineralization at Mountain View Gold Project, Nevada
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to report final drill results from a recently completed drilling program at the Mountain View Gold Project in Nevada.
The Mountain View Gold Project is located in northwest Nevada, approximately 40 miles west of the Corporation's Hycroft mine near Winnemucca. It is part of the Deephole Mining District which saw gold production between 1938 and 1951, with renewed exploration activity beginning in 1984. Vista acquired the project in October 2002 from Newmont Capital Limited, a subsidiary of Newmont Mining Corporation.
The five-hole reverse circulation program totaled 4,070 feet. Two drill holes (MV04-192 and MV04-193) were abandoned before reaching bedrock due to water inflows in the gravels above the bedrock. The remaining three holes encountered gold mineralization. Significant intercepts include MV04-194 which intersected 110 feet of mineralization grading 0.039 ounces of gold per ton between 245 and 355 feet, and 160 feet grading 0.024 ounces of gold per ton between 530 and 690 feet. MV04-195 intersected 340 feet of mineralization grading 0.045 ounces of gold per ton, including a higher grade interval of 15 feet assaying 0.421 ounces of gold per ton from 845 to 860 feet. MV04-196 intersected 65 feet of mineralization grading 0.031 ounces of gold per ton from 665 to 730 feet.
The results of MV04-194, 195 and 196 indicate the potential for bulk-mineable gold mineralization. MV04-195 was drilled 60 feet below a hole drilled earlier, MV94-95, and the results indicate the down-dip extension of mineralization, including higher grade intercepts that correlate between these two holes.
The drilling program was performed between October 13 and November 20, 2004, under the overall supervision of Warren Bates, P.Geo., Vista's Chief Geologist. Mr. Bates is a qualified person for the purposes of Canadian National Instrument 43-101. All samples taken were five feet in length and were assayed by American Assay Labs of Reno, Nevada. Drill hole MV04-194 was a vertical hole, MV04-195 and 196 were angle holes drilled from west to east. Sampling and assaying methods were conducted in accordance with Canadian National Instrument 43-101 best practices. Selected weighted-average assay results are shown in the following table:
Selected Drill Hole Assay Results
Hole From To Interval Gold From To Interval Gold
(feet) (feet) (feet) Ounces (feet) (feet) (feet) Ounces
Per Per
Ton Ton
MV04-
194 245 355 110 0.039
and 530 690 160 0.024
MV04-
195 685 1025 340 0.045 Including 845 860 15 0.421
MV04-
196 665 730 65 0.031
"The work at Mountain View demonstrates Vista's ability to enhance our projects through strategic drilling," stated Mike Richings, President and CEO. "The results of this drilling program demonstrate the potential to add value to this project."
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 and 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, and an option to purchase the Awak Mas project in Sulawesi in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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 Corp. Announces Conference Call on January 27, 2005
Vista Gold Corp. (Amex: VGZ; TSX) will be holding a conference call for all interested parties regarding the option to purchase the Hycroft Mine in Nevada with Canyon Resources Corporation (AMEX: CAU), a Colorado based mining company, as announced on January 24, 2005. Also, the company intends to discuss the overall strategy and how the option agreement and pending sale will enhance the advancement of this strategy. The conference call will be held on Thursday January 27, 2005 at 4:30 P.M. EST (2:30 P.M. MST).
Individuals interested in attending and listening to the conference call can do so by logging on to www.vistagold.com and clicking on "Investor Information -- Webcasts".
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 Corp. Announces Agreement for Canyon Resources Option to Purchase Hycroft Mine
Vista Gold Corp. (Amex: VGZ; TSX: VGZ), is pleased to announce that it has signed a binding letter of intent agreement with Canyon Resources Corporation of Golden, Colorado (AMEX: CAU) to grant Canyon a six-month option to purchase the Hycroft mine in Nevada for an aggregate amount of US$10 million consisting of a combination of US$4 million in cash and US$6 million in equity units. Completion of the transaction is subject to the negotiation and execution of a definitive option and purchase agreement and regulatory approval. The agreement provides for Canyon to expend US$500,000 on a program of development and exploration drilling and mine engineering. The objectives of this program are to evaluate and expand the oxide reserves of Hycroft and to provide design information for the restart of oxide leaching operations.
At any time during the six-month period, Canyon may exercise its option to purchase Hycroft for an aggregate amount of US$10 million consisting of a combination of US$4 million in cash and US$6 million in units, with each unit consisting of one share of Canyon common stock and a warrant to purchase one half share of Canyon common stock. The number of units would be calculated by dividing US$6 million by the average closing price of Canyon common stock for the 20 trading days prior to the exercise of the option. The exercise price of each warrant would be equal to 130% of the average share price, as calculated above, upon exercise of the option and the warrants would have a term of three years from date of issue. Canyon will arrange to register the stock acquired by Vista as part of this transaction.
In addition, Canyon would have the choice either to arrange new reclamation bonding for Hycroft or assume the existing bond (subject to bonding company approval). If Canyon assumes the existing bond, Canyon would pay Vista the difference, over a number of years, between the bond amount (approximately US$6.8 million) and the bonding company's accepted cost estimate of reclamation (approximately US$4.2 million), or approximately US$2.6 million.
If Canyon fails to complete significant physical development activities directed toward recommencing gold production from oxide ore leaching during the 12 months following Canyon's purchase, then Canyon commits to spend $500,000 on exploration for high-grade gold deposits on the property in each of the two following 12-month periods.
The agreement would provide that Vista will have the right to nominate a new Director for Canyon's Board of Directors upon completion of the purchase, with such nomination subject to approval by Canyon's shareholders and its existing Board.
Vista and predecessor companies operated the Hycroft mine from 1983 to 1999, and during that period, the mine produced over 1 million ounces of gold. The mine produced 112,685 gold ounces in 1998 prior to temporary suspension of mining operations due to low gold prices at the end of 1998. In 2004, Mine Development Associates of Reno, Nevada, completed a Canadian National Instrument 43-101 compliant update of the feasibility of restarting operations, as previously reported. In the study, it was estimated that the proven and probable reserves in a defined open-pit were 32.4 million tons of ore grading 0.0175 gold ounces per ton containing 566,500 ounces of gold. The pit containing these reserves also contained an additional approximately 5 million tons of inferred resources(1) containing about 144,000 gold ounces.
Mike Richings, Vista President and CEO, stated, "The deal with Canyon represents a significant step forward in Vista's strategy. We have held the Hycroft mine during a period of low gold prices during which we improved the value through continued exploration and engineering studies. We look forward to the eventual sale of this mine to Canyon, an experienced operating company, which we believe can put the gold mine back into production and achieve significant returns. Vista would, through its substantial ownership of Canyon, benefit from this and continue to provide its shareholders with exposure to the upside of future exploration and development success. The funds from the sale will allow Vista to advance and add value to the significantly larger Paredones Amarillos and Awak Mas projects, and to continue to acquire additional gold resources. We expect higher gold prices in the future, but we believe it is better to take this timely offer from Canyon rather than waiting and incurring the continued burden of the holding costs."
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 and 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, and the Awak Mas project in Sulawesi in Indonesia.
(1) Cautionary Note to U.S. Investors concerning estimates of Inferred
Resources: This press release 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 statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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/
SOURCE: Vista Gold Corp.
CONTACT: Greg Marlier of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Luzon Exercises Option to Purchase Amayapampa Project, Bolivia
Vista Gold Corp. (AMEX: VGZ; TSX: VGZ), is pleased to announce that Luzon Minerals Ltd. has informed Vista that it wishes to exercise its option to purchase Vista's Amayapampa gold project in Bolivia. Mike Richings, Vista President and CEO, stated, "We are very pleased that Luzon has decided to proceed, although the bankable project feasibility study is still in the final stages of completion. We also wish to congratulate Luzon on achieving a major milestone in the development of this excellent project by reaching a socio-economic agreement with the local communities affected by the proposed development."
In addition, the companies have agreed, subject to regulatory approval, to further amend the terms of the original purchase option agreement with respect to the payments previously due on January 15, 2005 and January 1, 2006. The amended agreement calls for Vista to receive from Luzon, within 5 business days of receiving TSX Venture Exchange approval, a payment consisting of US$100,000 and 2,000,000 Luzon common shares. This will be followed, on the earlier of June 15, 2005 or the date of the next financing completed by Luzon after January 19, 2005, by a payment of US$850,000 in cash or, at Luzon's option, US$425,000 in cash and US$425,000 in units consisting of Luzon common shares and warrants to purchase common shares.
The final payment will be made at the earlier of the start of construction or June 15, 2006. This payment remains unchanged from the original agreement, as reported in December 2003, in that Luzon will pay Vista US$4,000,000 in cash, or at Vista's option, a combination of Luzon common shares and cash based on Luzon's share price. If Luzon completes the purchase, and when production commences, Vista will also receive a 3% net smelter type royalty on gold production at gold prices of US$450 per ounce or below and 4% at gold prices above US$450 per ounce. Other terms of the agreement remain unchanged.
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 and 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, and the Awak Mas project in Sulawesi in Indonesia.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Corporation's periodic reports, including the annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Corporation 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/
