Vista Gold Corp. Announces Acceleration of Expiry of Warrants Issued in Connection With February 2003 and September 2004 Privat
02 Mai 2006 - 3:04AM
PR Newswire (US)
DENVER, May 1 /PRNewswire-FirstCall/ -- Vista Gold Corp. (AMEX:VGZ)
Toronto announces that, in accordance with the terms of the
Corporation's outstanding common share purchase warrants (the
"February 2003 Warrants") issued under a Warrant Indenture dated
February 7, 2003, and the outstanding common share purchase
warrants (the "September 2004 Warrants" and with the February 2003
Warrants, the "Warrants") issued under a Warrant Indenture dated
September 29, 2004, the Corporation has elected to accelerate the
expiry date of all such currently outstanding Warrants since the
"Acceleration Event" described in the applicable warrant indentures
has occurred. For the February 2003 Warrants, the Acceleration
Event occurred on April 26, 2006, because the closing price of the
Corporation's common shares on the American Stock Exchange exceeded
150% of the current exercise price (US$4.28) for the 15 consecutive
trading days prior to that date. For the September 2004 Warrants,
the Acceleration Event occurred on April 28, 2006, because the
closing price of the Corporation's common shares on the American
Stock Exchange equaled or exceeded US$5.50 for the 20 consecutive
trading days prior to that date. The expiry date of the February
2003 Warrants will now be May 17, 2006, and the expiry date of the
September 2004 Warrants will now be May 19, 2006. The Warrants must
be exercised by 4:30 p.m. (Vancouver time) on the respective expiry
dates, failing which they will expire. Notices of acceleration of
the expiry were sent on April 26, 2006, to holders of the February
2003 Warrants and were sent on April 28, 2006, to holders of the
September 2004 Warrants. Of the February 2003 Warrants, there are
currently 574,000 outstanding, exercisable at US$4.28 per share,
for potential aggregate proceeds to the Corporation of
US$2,456,720. Of the September 2004 Warrants, there are currently
1,459,798 outstanding, exercisable at US$4.75 per share, for
potential aggregate proceeds to the Corporation of US$6,934,040.50.
All of these common shares issuable upon exercises of the Warrants
have previously been registered with the SEC for resale under the
Securities Act of 1933 on registration statements on Form S-3. The
acceleration of the expiry date of the warrants above reflects an
improved market for Vista shares caused in part by the recent
significantly higher gold prices. The same higher gold prices mean
that several of the projects that Vista owns would have improved
economics and Vista plans to accelerate the evaluation and
preliminary development engineering programs on the Paradones
Amarillos, Mt. Todd and Hycroft projects. Depending on the amount
of funds received, the Corporation will use some of the funds
raised to carry out these value adding programs. Vista management
will also be studying various approaches to better realize, for the
benefit of its shareholders, the higher valuations the market gives
gold projects in certain geographic locations or stages of
development. These approaches will not, however, change Vista's
basic business strategy. Vista Gold Corp., based in Littleton,
Colorado, evaluates and acquires gold projects with defined gold
resources. Additional exploration and technical studies are
undertaken to maximize the value of the projects for eventual
development. The Corporation's holdings include the Maverick
Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects,
the F.W. Lewis, Inc. properties and the Hycroft mine, all in
Nevada, the Long Valley project in California, the Yellow Pine
project in Idaho, the Paredones Amarillos and Guadalupe de Los
Reyes projects in Mexico, the Mt. Todd project in Australia, 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
http://www.vistagold.com/ DATASOURCE: Vista Gold Corp. CONTACT:
Greg Marlier of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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