Vista Gold Corp. Announces Personnel Appointments, Third Quarter Financial Results
Vista Gold Corp. (AMEX: VGZ) Toronto is pleased to announce the promotion of Howard M. Harlan, R.G., C.P.G., to the position of Vice President, Business Development and the appointment of Warren R.G. Bates, P. Geo., to the position of Chief Geologist. Mr. Harlan was previously Manager, Corporate Administration with the Company and Mr. Bates was International Exploration Manager. Mr. Harlan has over 35 years experience in exploration, development, operations, project evaluation, and mergers and acquisitions in the mining industry in North and South America. Mr. Harlan holds B.S. and M.S. degrees in Geology from the University of Arizona and is a registered geologist and certified professional geologist.
Mr. Bates joined the Vista Gold/Granges exploration team in 1985. He has managed exploration programs for gold, copper, nickel and diamonds in North and South America, working in a variety of geologic and geographic locations. Mr. Bates is experienced in grass-roots exploration and mine site exploration, and has also worked on project acquisitions and evaluations. He holds Honors degrees in Chemistry and Geology from the University of Manitoba, and is a Qualified Person under Canadian National Instrument 43-101 requirements.
In its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, to be filed with the US Securities and Exchange Commission, Vista reports a consolidated net loss of US$1.0 million or US$0.07 per share compared to a net loss of US$0.5 million or US$0.04 per share for the quarter ended September 30, 2003. The increase in losses of US$0.5 million compared to the same period last year resulted in part from increased exploration, property evaluation and holding costs of US$0.2 million reflecting the reclassification of tax expense relating to the Hycroft reclamation bond which was previously stated as restricted cash, a US$0.07 million reduction in gold sales, and increased property evaluation costs of US$0.08 million. As well, stock-based compensation, which was not previously reported in 2003 as an expense was US$0.12 million, compared to zero in the same previous period. For the nine months ended September 30, 2004, Vista reported a consolidated net loss of US$3.6 million or US$0.23 per share compared to a net loss of US$2.0 million or US$0.16 per share for the same period in 2003.
At the end of the quarter the Corporation had working capital of US$8.6 million and no debt.
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, 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. Signs Option to Purchase Awak Mas Gold Deposit, Indonesia
Vista Gold Corp. (TSX & Amex: VGZ) is pleased to announce that it has signed an option agreement to acquire the Awak Mas gold deposit located in Sulawesi, Indonesia, for a purchase price of U.S. $1,500,000. Under the terms of the agreement, the Corporation will have up to six months 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.
A resource analysis for the Awak Mas project was prepared on October 28, 2004, 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. The resource analysis report includes the results of 85,030 assay intervals from 814 core and reverse circulation drill holes done by Battle Mountain Gold, Lone Star and Masmindo from 1991 through 1997 with assaying by Inchcape Testing Services. A final feasibility study was completed by independent consultants in 1997 for Lone Star supporting a mining scenario of 3 million metric tons per year of ore. Independent valuations of the project were completed in 2000 and 2003 as well. Over AUD $46 million has been spent on the project.
Based on the resource analysis report, the gold resources, reported at a cutoff grade of 0.5 grams gold per ton are:
Short Tons Grade Contained Gold
(000s) (ounces Ounces
per ton)
Measured and indicated
resources 1) 52,580 0.032 1,656,000
Inferred resources 2) 8,250 0.032 259,000
1) Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This table 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 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 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.
Vista President and CEO Mike Richings stated "The potential to acquire high quality 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 is very attractive to Vista. We believe the recent election results in Indonesia bode well for the country and foreign investments in resource projects in Indonesia. And, with rising gold prices, we expect Awak Mas to be an increasingly valuable addition to Vista's asset base."
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 Amayapampa project in Bolivia.
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 Appointment of New Board Member
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to announce the appointment of W. Durand Eppler of Denver, Colorado, to the Board of Directors effectively immediately. Mr. Eppler holds an M.S. degree in Mineral Economics from the Colorado School of Mines. Recently, with Newmont Mining Corporation, he held positions of Vice President of Newmont Capital, Ltd., President of Newmont Indonesia, Vice President of Corporate Development and Vice President of Corporate Planning. He also has considerable domestic and international banking experience with major U.S. banks. Mr. Eppler fills a Board vacancy with a term that expires at the next annual general meeting of shareholders. The vacancy was created by the unexpected passing of President Jock McGregor in late May.
"The addition of Randy Eppler brings strength to our company, particularly in the business development and financial areas, and we are very pleased to welcome him to our Board of Directors," said Mike Richings, President and CEO.
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.
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 Closing of U.S. $6.5 Million Private Placement
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to announce the closing of the private placement previously announced on July 28, 2004. The Corporation raised gross proceeds of U.S. $6,489,304.80 from the sale of 1,966,456 units priced at U.S. $3.30 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. $4.75 for a period of two years from the date of issue, provided a registration statement is declared effective by the U.S. Securities and Exchange Commission within six months of the closing date; otherwise, the exercise price of each warrant will be reduced automatically to U.S. $4.25.
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. $5.50 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.
A cash finder's fee of 5% of the gross proceeds raised was paid to an advisor to the corporation in conjunction with 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 provide for 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.
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 Updated Feasibility Study for the Hycroft Mine in Nevada and Recent Work on the Paredones Amarillos Gold Project in Mexico
Vista Gold Corp. (TSX: VGZ; Amex) is pleased to announce the results of an updated feasibility study for the Hycroft Mine issued on August 23, 2004, 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. The Hycroft open-pit, heap-leach, gold mine is located 54 miles west of Winnemucca, Nevada, and has produced in excess of one million ounces of gold and two million ounces of silver. The mine is currently on a care and maintenance basis.
The Hycroft resource estimate is based on a database containing 575 drill holes with assaying done by the Barringer Laboratories of Reno, Nevada, and the Hycroft Mine laboratory, with checking assaying by ALS Chemex Laboratories of Reno, Nevada, and Vancouver, B.C., Canada, American Assay Laboratories of Sparks, Nevada, and Cone Geochemical of Denver, Colorado. An open pit was designed using a Lerchs-Grossman optimization at US$375 per ounce gold price and a 0.005 opt cyanide-soluble gold cutoff grade. Measured and indicated gold resources (1) as of August 23, 2004, are:
Hycroft Measured and Indicated Resources (1)
(0.005 opt cyanide-soluble gold cutoff grade)
Short Tons Fire Assay Contained
Gold Grade Gold Ounces
(opt)
Measured resources (1) 23,287,000 0.0165 385,100
Indicated resources (1) 24,192,000 0.0153 369,400
Totals 47,479,000 0.0159 754,600
(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.
Inferred gold mineralization (2) exists within the US$375 per ounce
gold price pit outline and the pit outline using a US$450 per ounce
gold price, as shown in the following table.
Hycroft Inferred Resources (2)
(0.005 opt cyanide-soluble gold cutoff grade)
Short Tons Fire Assay Contained
Gold Grade Gold Ounces
(opt)
Inferred resources, inside
US$375 designed pit (2) 5,210,000 0.0154 80,400
Inferred resources, between
the US$375 gold designed
pit and US$450 gold pit (2) 6,819,000 0.0078 53,200
Totals 12,029,000 0.0111 133,600
(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.
Proven and probable reserves were determined within a design pit
based on a US$375 per ounce of gold Lerchs-Grossman optimization and
the results are summarized in the following table.
Hycroft Mineral Reserve Estimate
(0.005 opt cyanide-soluble gold cutoff grade)
Short Tons Fire Assay Contained Strip Ratio
Gold Grade Gold Ounces Waste Tons (Waste:Ore)
(opt)
Proven 16,269,000 0.0180 293,000
Probable 16,160,000 0.0169 273,500
Totals 32,429,000 0.0175 566,500 57,796,000 1.78
MDA updated capital and operating cost estimates for the feasibility study, assuming a nominal mining rate of 24 million tons per year of all materials. Using a mining equipment leasing scenario, a gold price of US$400 per ounce and a silver price of US$6.00 per ounce, a pre-tax internal rate of return of 16.4% was calculated on proven and probable reserves. Total cash costs were estimated at US$252 per gold ounce.
A sensitivity analysis was done including Inferred materials within the design pit and the pre-tax internal rate of return improved to 29.2%, with total cash costs per gold ounce decreasing to US$232. More drilling is necessary to confirm the presence of Inferred materials, and it is not known how much of these Inferred materials will be converted to Measured or Indicated Resource classification.
At the Paredones Amarillos gold project in Baja California Sur, Mexico, Vista has targeted the Tocopilla Zone for additional exploration work in 2004 and 2005. This zone, measuring about one square kilometer in known surface expression, and located about five kilometers north of Paredones Amarillos, has the same geologic setting to the Paredones Amarillos deposit, consisting of diorite overlying and separated from granodiorite by a major shear zone. The Paredones Amarillos deposit contains 1,882,000 gold ounces in the Measured and Indicated categories as reported previously by the Company, and was the subject of a feasibility study completed in 1997 by Echo Bay Mines. The Tocopilla Zone was identified late in 1997 by Echo Bay geologists, just prior to shelving the project due to low gold prices. Initial surface sampling by Echo Bay returned anomalous gold values, including surface rock chip samples to 21 grams gold per tonne and trench samples including 1.9 grams gold per tonne over 19 meters. Vista plans to complete mapping and surface sampling of the Tocopilla Zone, with the intent of drilling favorable targets in late 2004 or early 2005. Vista has also begun work to optimize and update the Paredones Amarillos feasibility study completed by Echo Bay in 1997.
Mike Richings, President and CEO, commented, "Progress at both Hycroft and Paredones Amarillos demonstrate Vista's continued commitment to increasing shareholder value through bringing our existing projects closer to production decisions, and optimizing the projects by re-engineering. The discovery of a previously undefined zone of potential mineralization near Paredones Amarillos is particularly exciting in that we may be able to increase our resource base here through exploration on land we already own, and for a nominal cost."
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 Amayapampa project in Bolivia.
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, as amended, 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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Appointment of CEO and Second Quarter Financial Results
The Board of Directors of Vista Gold Corp. (TSX: VGZ; Amex) is pleased to announce the appointment of Michael B. Richings as President and CEO of Vista Gold Corp. Mr. Richings had been previously appointed interim President and CEO following the untimely passing of Ronald (Jock) McGregor. Mr. Richings stated, "My plans are simply to keep advancing the company towards the goals already established. These are to use our resources wisely to increase the quantity and quality of our gold reserves and resources, thereby enhancing shareholder value. We believe Vista Gold is well positioned to take advantage of rising gold prices by continuing our current strategy and we will continue to promote investor awareness of our company."
In its Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, to be filed with the US Securities and Exchange Commission, Vista reports a consolidated net loss of US $1.4 million or US $0.09 per share compared to a net loss of US $0.6 million or U S$0.05 per share for the quarter ended June 30, 2003. The increase in loss of $0.8 million compared to the same period last year resulted in part from increased exploration, property evaluation and holding costs of $0.2 million reflecting the Corporation's growing resource base and increased holding costs at the Hycroft Mine where operations have been suspended since December 1998. The increased costs at Hycroft resulted from reduced gold production, which in past periods had partially offset expenses. Corporate administration and investor relations costs were higher by $0.4 million from the respective prior period mainly due to increased regulatory and compliance expenses and a higher level of investor relations activity. Finally stock-based compensation, which was not previously reported in 2003 as an expense was $0.08 million, compared to zero in the same previous period. For the six months ended June 30, 2004, Vista reported a consolidated net loss of US $2.5 million or US $0.17 per share compared to a net loss of US $1.5 million or US $0.12 per share for the same period in 2003.
At the end of the quarter the Corporation had working capital of $4.6 million and no debt.
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.
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 Board of Directors Approves Payment on Guadalupe de los Reyes Property, Mexico
Vista Gold Corp. (Amex: VGZ; TSX) announces that its Board of Directors has approved a US$500,000 payment in common shares of the Corporation towards the purchase of a 100% interest in the Guadalupe de los Reyes gold project in Sinaloa State, Mexico, and a data package associated with the project and general area. Under the August 2003 purchase agreement, the aggregate purchase price is US$1.4 million and a 2% NSR-type royalty. Vista has paid US$400,000 in prior payments. The agreement provides that the current US$500,000 payment may be made in cash or common shares at the option of the Corporation. The number of shares issuable is to be determined by dividing US $500,000 by the average closing price of Vista's common shares on the American Stock Exchange over the last ten trading days immediately prior to July 31, 2004. Accordingly, the current issuance will amount to 138,428 common shares.
An additional US$500,000 in cash will be paid by way of US$100,000 payments on each of the second through sixth anniversaries of the signing of the formal agreement, with the outstanding balance becoming due upon commencement of commercial production. Vista retains the right to terminate the agreement at any time.
A resource study completed in 2003, the results of which were announced previously, reported the presence of 277,600 ounces of indicated(1) gold resource and 247,850 ounces of inferred(2) gold resource at a cutoff grade of 0.016 opt gold. The project includes significant silver values.
The Corporation is compiling and reviewing data and is considering updating a pre-feasibility study that was done by Pincock, Allen & Holt of Denver, Colorado in 1998.
"We believe the whole district needs to be consolidated, and we hold the heart of it," President and CEO Mike Richings commented. "Guadalupe de los Reyes has previously been studied for low-grade, open-pit development. Our interpretation of the deposit is that there is significant potential for high-grade material down-dip of the old workings which hasn't been adequately drill tested."
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.
1 Cautionary Note to U.S. Investors concerning estimates of Indicated
Resources: This news release 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 news 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 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
mineable.
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Reports Developments on Amayapampa Purchase Option Agreement With Luzon Minerals Ltd.
Vista Gold Corp. (Amex: VGZ; TSX) announced today that Luzon Minerals Ltd. ("Luzon") has informed Vista that it has completed its initial due diligence program on the Company's Amayapampa project in Bolivia. As previously reported, in December 2003, the Company agreed to sell its Amayapampa project to Luzon, which is in the process of updating the feasibility study completed by Vista in 2000 and negotiating a socio-economic agreement with the community surrounding the Amayapampa project.
The companies have agreed to modify the terms of the purchase option agreement. Under the modified terms, subject to regulatory approval, as soon as practicable following August 1, 2004, Luzon will issue Vista 200,000 common shares and assume all holding costs for the project. On January 15, 2005, Luzon will make a further payment of US$900,000 and issue Vista an additional 2,000,000 common shares. To date, Luzon has paid Vista US$100,000 and issued Vista 50,000 common shares. The initial agreement called for Luzon to pay Vista US$1,000,000, less any payments made, at the end of the due diligence period and issue Vista an additional 2,000,000 common shares. Luzon may withdraw at any time by forfeiting all payments made as of that time.
The remainder of the agreement is the same as reported in December 2003, as follows: at the earlier of start of construction or January 1, 2006, Luzon will pay Vista US$4,000,000 or, at Vista's election, a combination of shares and cash based on Luzon's share price, not to exceed 5,200,000 shares or US$4,000,000 cash. Luzon will grant Vista a 3% NSR type royalty where the price of gold is less than US$450 per ounce and a 4% NSR type royalty where the price of gold is $450 per ounce or more.
Mike Richings, President and CEO, stated, "We are pleased to see the progress that Luzon is making and that the engineering and design work previously completed by Vista is helping advance the project towards development."
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.
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces a Proposed U.S. $6.5 Million Private Placement
Vista Gold Corp. (Amex: VGZ; TSX) announces that subject to regulatory approval, it plans to undertake a private placement financing, which if completed, will raise gross proceeds of up to U.S. $6.5 million from the sale of up to 1.96 million units priced at U.S. $3.30 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. $4.75 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. $5.50 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.
A cash finder's fee of 5% of the gross proceeds raised will be paid to an advisor to the corporation in conjunction with 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, 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.
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Agreement With Pintail Environmental Solutions, LLC for Evaluation of Gold Recoverability at Hycroft Mine; Potential for Joint Venture
Vista Gold Corp. (TSX & Amex: VGZ), is pleased to announce that it has reached an agreement with Pintail Environmental Solutions, LLC (Pintail), a Denver-based biotechnology firm. The agreement calls for Pintail to complete a development program and feasibility study to demonstrate the economic and technical feasibility of recovering gold from the currently dormant heap leach pads located at the Hycroft mine site in Nevada. These pads have been treated previously to recover gold but still contain approximately 600,000 ounces of gold. Pintail is an innovative U.S. research and development firm, which has, over the last 17 years, successfully developed technology employing various natural microbial processes to enhance and accelerate gold recovery through solution leaching. Pintail believes their technology may be used to treat the gold ore in the heap leach piles and recover significant percentages of the remaining gold.
The study, to be funded solely by Pintail, is expected to last one year and to cost U.S. $500,000. If the study demonstrates that gold can be recovered for a total cost (capital plus operating costs) per recovered gold ounce of less than one half the then prevailing gold price, Pintail will earn a 50% interest in a joint venture to develop a commercial gold operation to produce gold from the heap leach piles.
Mike Richings, President and CEO, stated, "We are excited at Vista to work with Pintail on this project. Pintail is a world leader in developing this biological-based gold recovery technology. This is an example of advanced engineering technologies that Vista seeks to utilize in order to add value to all our projects."
Vista is not currently considering selling the Hycroft Mine but rather, is seeking joint venture partners to help develop the full potential of the property and minimize risk. Although Hycroft has existing proven and probable gold reserves, and Vista is currently updating the feasibility of mining these reserves, the Company believes there is considerable potential for additional gold reserves. Some of these reserves can be defined and developed by Vista but others are deep and may be better suited to exploration and development using the more substantial financial resources of a major mining company.
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.
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Appointment of CFO and Extension of Amayapampa Due Diligence Period
Vista Gold Corp. (Amex: VGZ; TSX) announced today the appointment of Gregory G. Marlier to the position of Chief Financial Officer effective immediately. This follows a search lasting several months for an experienced CFO with a substantial mining industry background. Greg brings over 25 years of experience in corporate finance, accounting and securities regulatory compliance, much of which has been in the mining industry. He has a B.S. degree in Business Administration/Accounting from John Carroll University. Most recently, he was CFO at Pacific Western Technologies, Ltd. in Lakewood, Colorado, and has served in similar positions with Apex Silver Mines, Ltd. of Denver, Colorado, and Cambior USA, Inc., of Englewood, Colorado.
Michael B. Richings, President and CEO, stated, "Vista's former President and CEO Jock McGregor recommended to the board that we hire Greg, and Jock and I both worked with him in the past and found him to be highly talented and capable. I am pleased that he will join us and assist the Company in its continued growth."
On another matter, the Company has granted Luzon Minerals, Ltd. ("Luzon") a two-month extension, to August 1, 2004, to complete its due diligence program on the Company's Amayapampa project in Bolivia. As previously reported, in December 2003 the Company agreed to sell its Amayapampa project to Luzon, which is in the process of updating the feasibility study completed by Vista in 2000 and negotiating a socio-economic agreement with the community surrounding the Amayapampa project. During this two-month extension, Luzon will continue to pay Vista the sum of US$15,000 per month. At the end of the due-diligence period, should Luzon decide to exercise its option, Luzon will pay the Company US$1,000,000 less payments made as of August 1 of US$100,000, and issue Vista 2,000,000 common shares.
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.
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Appointment of Interim President and CEO
Vista Gold Corp. (AMEX: VGZ) Toronto announced today that Michael B. Richings, former President and CEO from June 1995 to September 2000, and current member of the Board of Directors, has agreed to assume the role of President and CEO of the Company while a permanent replacement is sought for President and CEO Ronald J. (Jock) McGregor, who passed away suddenly and unexpectedly yesterday, in Littleton, Colorado. The appointment of Mr. Richings was made effective today at a meeting of the Board of Directors.
"Mike Richings is the ideal person to step in and manage the Company during the period while we search for a new President and CEO. Mike knows the business strategy of the Company and is well-acquainted with the Company's properties and its employees. The Company has developed a strong foundation, a dedicated shareholder following, a committed Board of Directors and a trusted management structure that will continue with the enthusiasm and commitment Jock exhibited," stated John Clark, board member and Chairman of the Audit and Compensation Committees. "The Board will work closely with Mike and Vista's management team to ensure the continued success of the Company and orderly transition to Mr. McGregor's successor. The plans and strategies that were developed so ably by Mr. McGregor will be continued and expanded. Meanwhile, our condolences go out to Jock's family and friends, and they are in our thoughts during this difficult time for them."
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Loss of President and CEO
Vista Gold Corp. (AMEX: VGZ) Toronto announced today that Ronald J. (Jock) McGregor, President and CEO, passed away suddenly and unexpectedly yesterday, while jogging, in Littleton, Colorado.
"The Board of Directors and employees of Vista Gold are very saddened at the loss of Jock McGregor. He was an extremely capable president and a great friend who will be deeply missed by his associates and family," stated John Clark, a board member. "The Board of Directors is meeting later today to develop a plan to deal with this unexpected loss."
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 Howard Harlan at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Howard Harlan 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; TSX) announced today its financial results for the quarter ended March 31, 2004, as filed on May 17, 2004, with the US Securities and Exchange Commission in the Corporation's Quarterly Report on Form 10-Q. For the quarter ended March 31, 2004, Vista reported a consolidated net loss of US$1.1 million or US$0.08 per share compared to the quarter ended March 31, 2003, consolidated net loss of US$0.8 million or US$0.07 per share.
Net cash used for operations in the quarter ended March 31, 2004, was US$0.4 million compared to US$0.7 million for the same period in 2003. Net cash used in investing activities in the quarter ended March 31, 2004, was US$2.4 million compared to US$0.8 million in the same period 2003. The increased spending in investing activities was primarily due to US$2.3 million paid into the reclamation bond account for the Hycroft mine in Nevada.
The Corporation received net cash from financing activities of US$2.2 million in the quarter ended March 31, 2004, compared to US$3.3 million for the same period in 2003. The US$2.2 million proceeds in the 2004 period were all from the exercise of warrants. During the same period in 2003, the Corporation raised US$2.9 million in net proceeds from a private placement and US$0.4 million from the exercise of warrants.
The financial position of the Corporation included current assets at March 31, 2004, of US$5.4 million compared to US$6.5 million at December 31, 2003, and total assets of US$27.5 million at March 31, 2004, compared to US$26.3 million at December 31, 2003.
Current liabilities were US$0.4 million at March 31, 2004, compared to US$0.4 million at December 31, 2003. Total liabilities at March 31, 2004, were US$4.6 million compared to US$4.6 million at December 31, 2003, and shareholders' equity was US$22.9 million at March 31, 2004, compared to US$21.7 million at December 31, 2003.
The Corporation's working capital as of March 31, 2004, was US$4.9 million compared to US$6.1 million at December 31, 2003. From March 31, 2004, through April 30, 2004, approximately US$628,443 has been obtained from the exercise of warrants issued during previous private placements. In order for the Corporation to continue its growth strategy and meet the final bond payment for its Hycroft mine in Nevada which is due in December 2004, it may be necessary for the Corporation to raise additional capital through private placements or sale or joint venture of certain of its assets. The financial information for the first quarter of 2004 is summarized in the following table.
Selected Financial Data
Three Months Ended March 31
U.S. $ 000's, except loss per share 2004 2003
Results of operations
Net loss $(1,146) $(815)
Basic and diluted loss per share (0.08) (0.07)
Net cash used in operations (448) (679)
Net cash used in investing activities (2,437) (775)
Net cash provided by financing activities 2,203 3,309
March 31, December 31,
2004 2003
Financial position
Current assets $5,353 $6,485
Total assets 27,526 26,280
Current liabilities 439 408
Total liabilities 4,610 4,577
Shareholders' equity 22,916 21,703
Working capital 4,914 6,077
The annual general meeting of the Corporation's shareholders was held on May 10, 2004. Re-elected to the Board of Directors for a one-year term were John M. Clark, Ronald J. McGregor, C. Thomas Ogryzlo, Robert A. Quartermain and Michael B. Richings. PricewaterhouseCoopers was re-appointed independent auditor.
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.
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 Jock McGregor at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com.
SOURCE: Vista Gold Corp.
CONTACT: Jock McGregor of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Updated Resource Estimate for the Maverick Springs Project in Nevada
Vista Gold Corp. (Amex: VGZ; TSX) is pleased to announce the results of an updated resource analysis for the Maverick Springs project prepared on April 13, 2004, by Snowden Mining Industry Consultants of Vancouver, British Columbia, an independent consulting firm, in accordance with Canadian National Instrument 43-101 guidelines. The report includes drill results, previously reported, from 23 reverse circulation holes completed by Vista in 2002 and 2003. The Maverick Springs gold-silver project is located approximately 50 miles southeast of Elko, Nevada, on the southeast extension of the Carlin Trend.
Maverick Springs is a large, flat-lying, Carlin-type system with gold-silver mineralization occurring in a zone 100 to 400 feet in thickness.
The resource estimate is based on a database containing 159 drill holes. The resource was reported at a cutoff grade of 1.0 silver-equivalent ounces per ton. Silver equivalence was calculated using metal price averages over the past three years of US$327 per ounce for gold and US$4.77 per ounce for silver. Gold and silver resources as of April 13, 2004, are:
|------------------------|----------------------|-----------------------|
| | Gold | Silver |
|--------------|---------|----------|-----------|----------|------------|
| | Tons | Grade | Contained | Grade | Contained |
| | (000s) | (o.p.t.) | Ounces | (o.p.t.) | Ounces |
|--------------|---------|----------|-----------|----------|------------|
| Indicated | | | | | |
| resources(1) | 69,630 | 0.010 | 696,300 | 1.0 | 69,630,000 |
|--------------|---------|----------|-----------|----------|------------|
| Inferred | | | | | |
| resources(2) | 85,550 | 0.008 | 684,400 | 1.0 | 85,550,000 |
|--------------|---------|----------|-----------|----------|------------|
(1) Cautionary Note to U.S. Investors concerning estimates of Indicated
Resources: This table 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 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 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.
In November 2002, Vista reported indicated gold resources of 350,000 ounces and inferred gold resources of 747,000 ounces at a gold cutoff grade of 0.005 gold ounces per ton. At the same time, indicated silver resources were reported to be 32,321,000 ounces and inferred silver resources were reported to be 68,776,000 ounces at a silver cutoff grade of 0.50 silver ounces per ton. Gold and silver resources were estimated in separate studies using separate gold and silver cutoff grades in the November 2002 report, while in the April 13, 2004 report, they were estimated as part of a single study using a combined cutoff grade (the silver equivalent cutoff grade).
Vista President and CEO Jock McGregor stated, "Drilling conducted by Vista in 2002 and 2003 has resulted in a significant increase to our resource base at Maverick Springs. This work also demonstrates Vista's continuing commitment to enhancing shareholder value through activities that potentially increase the value of our projects."
The project is subject to an option/joint venture earn-in agreement between Vista and Silver Standard Resources Inc. (Nasdaq: SSRI; TSX: SSO), as previously disclosed, in which Silver Standard will acquire all silver mineralization hosted at Maverick Springs while Vista will retain all gold mineralization. In order to earn its interest, Silver Standard paid US$300,000 in cash and will contribute a total of US$1.2 million toward exploration programs, land holding costs and option payments.
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 Amayapampa project in Bolivia.
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, as amended, 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 Jock McGregor at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Jock McGregor of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
Vista Gold Corp. Announces Year-End Financial Results and Recent Developments
Vista Gold Corp. (AMEX: VGZ) Toronto announced today its financial results for the year ended December 31, 2003, as filed on March 30, 2004 with the U.S. Securities and Exchange Commission in the Corporation's Annual Report on Form 10-K. For the year ended December 31, 2003, Vista reported a consolidated net loss of US $2.7 million or $0.22 per share compared to the 2002 consolidated net loss of US $2.8 million or US $0.41 per share.
The Corporation received net cash from financing activities of US $8.1 million in 2003 compared to US $6.8 million in 2002. Net cash used in investing activities in 2003 was US $3.0 million compared to US $1.2 million in 2002, and in 2003, uses of cash included the acquisition of six gold properties, funding of exploration activities and land holding costs. Net cash used for operations in 2003 was US $3.0 million compared to US $3.5 million in 2002. The unused cash received from financing activities in 2003 is on hand as working capital.
The financial position of the Corporation included current assets at December 31, 2003, of US $6.5 million compared to US $4.1 million in 2002 and total assets of US $26.3 million at December 31, 2003, compared to US $20.7 million in 2002. Total liabilities at December 31, 2003, were US $4.6 million compared to US $5.3 million in 2002 and shareholders' equity was US $21.7 million at December 31, 2003, compared to US $15.4 million in 2002. The Corporation's working capital as of December 31, 2003, was US $6.1 million which increased by US $2.6 million from US $3.5 million in 2002.
Due to the timing of non-discretionary and discretionary spending, working capital of US $6.1 million as of December 31, 2003, was not sufficient to cover estimated 2004 cash requirements of US $8.8 million which includes bond payments for Hycroft, general operations, exploration activities and land holding costs. As a result, the Form 10-K contains a going concern qualification from the Corporation's independent auditors. However, subsequent to year end 2003, warrants have been exercised providing US $2.2 million in cash for the Corporation, which has reduced the expected shortfall for 2004 to approximately US $0.5 million. In addition, there are outstanding warrants presently "in the money" that if now exercised, would provide approximately US $8.9 million in additional cash. There are, however, no assurances that any of these warrants will be exercised during 2004 and Vista may find it necessary to raise additional funds through private placements. While Vista has been successful in raising money by private placements in the past, there are no guarantees that Vista will be successful in the future. Management believes, however, that absent sufficient funding through warrant exercises or private placements, sale or joint venture of one or more of Vista's current projects will generate sufficient funds to cover any shortfall in 2004.
Selected Financial Data Years ended December 31 U.S. $ 000's, except loss per share 2003 2002 Results of operations Net loss $(2,745) $(2,775) Basic and diluted loss per share $(0.22) $(0.41) Net cash used in operations $(3,008) $(2,847) Net cash used in investing activities (3,002) (1,211) Net cash provided by financing activities 8,087 6,827 Financial position Current assets $6,485 $4,105 Total assets 26,280 20,688 Current liabilities 408 598 Total liabilities 4,577 5,263 Shareholders' equity 21,703 15,425 Working capital $6,077 $3,507
On another matter, Vista received notice on March 30, 2004, that the U.S. Bureau of Land Management, Nevada State Office ("BLM") accepted the replacement bond for the Hycroft Mine in Nevada in the amount of US $6.8 million. The new insurance/assurance bonding instrument, as further described in the press release of January 22, 2004, provided through member companies of American International Group, Inc. replaces the existing bond made up of a US $5.1 million non-cash collaterized bond from American Home Assurance Company, letters of credit of US $1.7 million posted directly with the BLM and the existing indemnity agreement between Vista and its wholly-owned subsidiary Hycroft Resources & Development, Inc.
The annual general meeting of the Corporation's shareholders has been scheduled for Monday, May 10, 2004 at 10:00 a.m., Vancouver time, at the offices of Borden Ladner Gervais LLP, 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. 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.
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 Jock McGregor at (720) 981-1185, or visit the Vista Gold Corp. website at www.vistagold.com
SOURCE: Vista Gold Corp.
CONTACT: Jock McGregor of Vista Gold Corp., +1-720-981-1185
Web site: http://www.vistagold.com/
