Vista Announces New Agreement With Luzon Minerals Ltd. for Option to Purchase Amayapampa Project, Bolivia
15 März 2007 - 12:14AM
PR Newswire (US)
DENVER, March 14 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(AMEX:VGZ) Toronto ("Vista") announced today that, subject to
receipt of all necessary regulatory and other approvals, it has
entered into a new agreement with Luzon Minerals Ltd. (CDNX:LZN-V)
("Luzon") with respect to the Amayapampa Project. Under the terms
of the new agreement, Vista has granted to Luzon an exclusive
option to purchase 90% of Vista's interest in the Amayapampa
Project for a term of 18 months and subject to the exercise of the
option to purchase, a right of first offer over Vista's remaining
10% interest. This agreement replaces all prior agreements between
Vista and Luzon with respect to Amayapampa Project. In
consideration for the option to purchase and the right of first
offer, Luzon has agreed to complete a National Instrument 43-101
compliant feasibility study by September 14, 2007, and to arrange
for 100% of the Project's financing required for the construction,
development and commencement of commercial mining operations at the
levels recommended in the feasibility study (including all working
capital), by no later than September 14, 2008. Vista may extend the
delivery deadline for the feasibility study for a further six
months under certain circumstances and for further consideration of
US$20,000 per month to be paid by Luzon to Vista. In addition,
Vista will retain a 10% of the net proceeds interest in the Project
which shall be "carried" to the point of commencement of commercial
production and Luzon will grant Vista a production royalty. The net
smelter return royalty will be 2.5% when gold is less than US$500
per ounce and 3.5% when gold is at or above US$500 per ounce. If
the feasibility study indicates proven and probable reserves at the
Amayapampa Project are greater than 685,252 ounces of gold, then
the net smelter return royalties on production above 548,202 ounces
of gold shall be reduced to 1.0% when gold is less than US$500 per
ounce and 2.0% when the gold price is at or above US$500 per ounce.
Luzon's ability to exercise the option to purchase is subject to
Luzon satisfying a number of conditions set out in the new
agreement. Subject to Luzon's right to extend the term of the
agreement in certain circumstances, the agreement will terminate on
September 14, 2008, unless the option to purchase has been
exercised by Luzon prior to such date. Vista, based in Littleton,
Colorado, evaluates and acquires gold projects with defined gold
resources. Additional exploration and technical studies are
undertaken to maximize the value of the projects for eventual
development. Vista's holdings include the Maverick Springs,
Mountain View, Hasbrouck, Three Hills, Wildcat projects, the F.W.
Lewis, Inc. properties and the Hycroft mine, all in Nevada, the
Long Valley project in California, the Yellow Pine project in
Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects
in Mexico, the Amayapampa project in Bolivia, the Awak Mas project
in Indonesia, and the Mt. Todd project in Australia. This press
release contains forward-looking statements within the meaning of
the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of
1934. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that Vista expects or anticipates will or may occur in
the future, including such things as future business strategy,
competitive strengths, goals, operations, plans and other such
matters are forward-looking statements. When used in this press
release, the words "estimate", "plan", "anticipate", "expect",
"intend", "believe" and similar expressions are intended to
identify forward-looking statements. These statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Vista to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks that Vista's
acquisition, exploration and property advancement efforts will not
be successful; risks relating to fluctuations in the price of gold;
the inherently hazardous nature of mining-related activities;
uncertainties concerning reserve and resource estimates; potential
effects on Vista's operations of environmental regulations in the
countries in which it operates; risks due to legal proceedings; and
uncertainty of being able to raise capital on favorable terms or at
all; as well as those factors discussed in Vista's latest Annual
Report on Form 10-K and Quarterly Report on Form 10-Q and other
documents filed with the U.S. Securities and Exchange Commission.
Although Vista has attempted to identify important factors that
could cause actual results to differ materially from those
described in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ
materially from those anticipated in such statements. Vista assumes
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information, please contact Greg Marlier at (720)
981-1185, or visit the Vista Gold Corp. website at
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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