Vista Announces Agreement to Extend Payment Deadline and Enter Into New Agreement with Luzon Minerals Ltd. for Option on Amayapa
06 Dezember 2006 - 2:30AM
PR Newswire (US)
DENVER, Dec. 5 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(AMEX:VGZ) Toronto ("Vista") announced today that, subject to board
approval and satisfaction of a number of other conditions, it has
reached an agreement with Luzon Minerals Ltd. (LZN-V) ("Luzon") to
extend the deadline for Luzon to make the US$2.6 million cash
payment currently payable to Vista by Luzon on December 6, 2006 to
January 30, 2007. The agreement to extend the deadline set under
the terms of the existing purchase option agreement between Vista
and Luzon (as previously announced by Vista) is subject to
satisfaction of the conditions described below. If these conditions
are satisfied, the existing purchase option agreement will be
replaced with a new option agreement substantially on the terms
described below. If these conditions are not satisfied, the
existing purchase option agreement will remain in effect and the
US$2.6 million payment will be payable on January 30, 2007. Under
the existing agreement, Luzon will not acquire title to the project
until all payments have been made. The agreement to extend the
payment deadline is subject to the following conditions: 1. Luzon
immediately restructure its board of directors to, among other
things, include a director nominated by Vista. 2. By no later than
January 30, 2007, Luzon will have: (a) demonstrated to the
satisfaction of Vista that it has management in place to undertake
technical and on-site management of the Amayapampa project; (b)
arranged sufficient funding, or have established and approved a
funding plan acceptable to Vista, to fund project and corporate
activities sufficient to complete the option period; (c) executed a
new option agreement with Vista to replace the existing purchase
option agreement that sets out the terms on which Vista agreed to
sell, and Luzon agreed to buy, the Amayapampa project from Vista.
Under the new option agreement, Vista would grant Luzon an 18-month
option to purchase a 90% interest in Vista's interests in the
Amayapampa project, on substantially the terms described below. The
consideration for the option will be: (i) the payments and shares
already received as part of the existing agreement; (ii) a monthly
payment of US$20,000 payable during the option period in cash or
shares of Luzon; (iii) payment to Vista of all outstanding accounts
receivable to be made on closing; and (iv) the assumption of all
future holding costs, including rents, legal fees, etc. for the
Amayapampa project and resumption by Luzon of project management
and site activities. The purchase price will consist of the
following: (v) The delivery of a Canadian National Instrument
43-101 compliant bankable feasibility study within six months of
the effective date of the new option agreement. (vi) The
arrangement for the 100% financing of the construction, including
all working capital (through to commercial production), of the
Amayapampa mine within 18 months of the effective date. (vii)
Payment to Vista of a net smelter royalty, graduated for gold
price, to be negotiated between the parties, but substantially
similar to the royalty in the existing agreement. Other terms will
be negotiated, but will include a requirement that until the mine
has been in commercial production for two years, Vista will be
entitled to nominate a director to Luzon's board of directors.
Vista understands that Luzon issued a press release earlier today
regarding the matters described above. The press release issued by
Luzon did not accurately reflect the terms of the agreement reached
between Vista and Luzon. Vista understands that Luzon intends to
issue a press release to clarify the terms of the agreement
reached. Vista, based in Littleton, Colorado, evaluates and
acquires gold projects with defined gold resources. Additional
exploration and technical studies are undertaken to maximize the
value of the projects for eventual development. Vista's holdings
include the Maverick Springs, Mountain View, Hasbrouck, Three
Hills, Wildcat projects, the F.W. Lewis, Inc. properties and the
Hycroft mine, all in Nevada, the Long Valley project in California,
the Yellow Pine project in Idaho, the Paredones Amarillos and
Guadalupe de los Reyes projects in Mexico, the Amayapampa project
in Bolivia, the Awak Mas project in Indonesia, and the Mt. Todd
project in Australia. This press release contains forward-looking
statements within the meaning of the U.S. Securities Act of 1933
and U.S. Securities Exchange Act of 1934. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that Vista expects
or anticipates will or may occur in the future, including such
things as future business strategy, competitive strengths, goals,
operations, plans and other such matters are forward-looking
statements. When used in this press release, the words "estimate",
"plan", "anticipate", "expect", "intend", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Vista to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
risks that Vista's acquisition, exploration and property
advancement efforts will not be successful; risks relating to
fluctuations in the price of gold; the inherently hazardous nature
of mining-related activities; uncertainties concerning reserve and
resource estimates; potential effects on Vista's operations of
environmental regulations in the countries in which it operates;
risks due to legal proceedings; and uncertainty of being able to
raise capital on favorable terms or at all; as well as those
factors discussed in Vista's latest Annual Report on Form 10-K and
Quarterly Report on Form 10-Q and other documents filed with the
U.S. Securities and Exchange Commission. Although Vista has
attempted to identify important factors that could cause actual
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Vista assumes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise. For further
information, please contact Greg Marlier at (720) 981-1185, or
visit the Vista Gold Corp. website at 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/
Copyright
Vista Gold (AMEX:VGZ)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Vista Gold (AMEX:VGZ)
Historical Stock Chart
Von Jul 2023 bis Jul 2024