DENVER, Colo., May 11 /PRNewswire-FirstCall/ -- Vista Gold Corp.
(Amex: VGZ; TSX) announced today its financial results for the
three months ended March 31, 2007, as filed on May 10, 2007, with
the US Securities and Exchange Commission and with the relevant
securities commissions in Canada in the Corporation's Quarterly
Report on Form 10-Q. Vista reported a consolidated net loss for the
three-month period ended March 31, 2007, of US$776,000 or US$0.02
per share compared to a consolidated net loss of US$1,108,000 or
US$0.05 per share for the same period in 2006. The decrease in the
consolidated net loss of US$332,000 from the prior year is largely
due to an increase in interest income of US$568,000 as well as
increased gains on the disposal of marketable securities of
US$163,000. These increases in income were partly offset by
increases in exploration, property evaluation and holding costs of
US$78,000, corporate administration and investor relations costs of
US$216,000 and stock-based compensation costs of US$100,000. Net
cash used for operations was US$920,000 for the three-month period
ended March 31, 2007, compared to US$1,041,000 for the same period
in 2006. The decrease of US$121,000 is the result of an increase in
cash used for accounts receivable of US$337,000, an increase in
supplies inventory, prepaids and other of US$134,000 and an
aggregate decrease of non-cash items of US$111,000, partially
offset by a decrease in accounts payable and accrued liabilities of
US$371,000 and a decrease in the consolidated net loss of
US$332,000. Net cash used for investing activities increased to
US$2.0 million for the three-month period ended March 31, 2007,
from US$1.4 million for the same period in 2006. The increase of
US$0.6 million is primarily the result of an increase in the
addition of mineral properties of US$1.4 million of which a
significant portion is the result of the drilling program in
progress at the Mt. Todd gold mine, which was acquired during 2006.
This increase is partially offset by a decrease of US$1.0 million
in acquisitions of mineral properties. This represents the funds
that Vista Gold placed in escrow during the same period in 2006 in
connection with the acquisition of the Mt. Todd gold mine, which
was completed in June 2006. There were no comparable expenditures
related to acquisitions during the 2007 period. Net cash provided
by financing activities decreased to US$1.0 million for the
three-month period ended March 31, 2007, from US$5.5 million for
the same period in 2006. Warrants exercised during the period ended
March 31, 2007 produced cash proceeds of US$1.2 million as compared
to US$2.0 million for the same period in 2006. Stock option
exercises produced cash of US$17,000 during the period ended March
31, 2007 as compared to US$293,000 for the same period in 2006. In
February 2006, we completed a private placement financing for net
proceeds of US$3.21 million. There were no comparable transactions
in the 2007 period. The increase of US$0.3 million for prepaid
transaction costs for the period ended March 31, 2007 as compared
to the same period in 2006 is due to costs incurred in connection
with the proposed Arrangement transaction involving Vista Gold,
Allied Nevada Gold Corp. and Carl and Janet Pescio, which closed on
May 10, 2007 (see discussion below). With the completion of the
Arrangement, these costs will offset any gain that we realize on
the transaction. At March 31, 2007, our total assets were US$94.0
million compared to US$92.7 million at December 31, 2006,
representing an increase of US$1.3 million. At March 31, 2007, we
had working capital of US$48.4 million compared to US$49.8 million
at December 31, 2006, representing a decrease of US$1.4 million.
This decrease relates to a decrease in cash balances from year end
and an increase in liabilities. The principal component of working
capital at both March 31, 2007 and December 31, 2006, is cash and
cash equivalents of US$46.8 million and US$48.7 million,
respectively. Other components include supplies inventory, prepaids
among other things (March 31, 2007 -- US$510,000; December 31, 2006
-- US$381,000), marketable securities (March 31, 2007 --
US$1,242,000; December 31, 2006 -- US$791,000) and other liquid
assets (March 31, 2007 -- US$1,100,000; December 31, 2006 --
US$773,000). At March 31, 2007, we had no outstanding debt to banks
or financial institutions. The selected financial data including
the results of operations for the three-month period ended March
31, 2007 compared to 2006, and the financial position as at March
31, 2007 compared to December 31, 2006 is summarized in the
following table: Selected Financial Data Three Months Ended March
31, 2007 2006 U.S. $000's, except loss per share Results of
operations Net loss $(776) $ (1,108) Basic and diluted loss per
share (0.02) (0.05) Net cash used in operations (920) (1,041) Net
cash used in investing activities (1,997) (1,449) Net cash provided
by financing activities 984 5,456 Financial position March 31,
December 31, 2007 2006 Current assets $49,617 $50,643 Total assets
94,006 92,731 Current liabilities 1,168 893 Total liabilities 5,876
5,604 Shareholders' equity 88,130 87,127 Working capital 48,449
49,750 As previously announced, the Arrangement involving Vista
Gold, Allied Nevada and Carl and Janet Pescio closed on May 10,
2007. The transaction resulted in the acquisition by Allied Nevada
of our Nevada properties and the Nevada mineral assets of Carl and
Janet Pescio. Of the 38,933,055 Allied Nevada shares issued as part
of the transaction, 12,000,000 were issued to Carl and Janet Pescio
as partial consideration for the acquisition of their Nevada
mineral assets and 26,933,055 were issued to Vista in accordance
with the Arrangement. Of the 26,933,055 Allied Nevada shares issued
to Vista, 25,403,207 shares will be available for distribution to
our shareholders, subject to applicable withholding taxes (as
described in the management and information and proxy circular of
Vista Gold dated October 11, 2006) and after we retain
approximately 1.5 million shares to facilitate the payment of any
taxes payable by us in respect of the Arrangement. Accordingly, for
each share of Vista Gold that a shareholder owned immediately prior
to the effective time of the Arrangement, they will receive,
subject to applicable withholding taxes (a) one new share of Vista
Gold, (b) 0.794 of an Allied Nevada share, and (c) any payment they
are entitled to receive in lieu of a fractional share of Allied
Nevada. The new common shares of Vista Gold and Allied Nevada
shares began trading on May 10, 2007, on the Toronto Stock Exchange
and the American Stock Exchange. At March 31, 2007, our working
capital was US$48.4 million. Following Vista's transfer of US$25
million in cash to Allied Nevada in connection with the closing of
the Arrangement, Vista's working capital is now approximately US$23
million (of which approximately US$20 million is cash). The annual
general meeting of the Corporation's shareholders was held on May
7, 2007. 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. Since 2001, Vista Gold Corp.,
based in Littleton, Colorado, has acquired a number of discovered
gold projects with the expectation that higher gold prices would
significantly increase their value. As gold prices have risen,
Vista has completed various preliminary evaluations that have
confirmed that some of the projects would be potentially viable
operations at today's gold prices. Currently, Vista is undertaking
technical programs to bring the most advanced projects to the point
where decisions can be made to put these projects into production,
either by Vista, or through sale or joint venture to other mining
companies. The Corporation's holdings include the Paredones
Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd
Project in Australia, Yellow Pine Project in Idaho, Awak Mas
Project in Indonesia, Long Valley Project in California, and the
Amayapampa Project in Bolivia. Forward-Looking Statements 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,
expansion and growth of Vista's business, 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,
including anticipated consequences of the contemplated transaction
described herein, 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 Vista 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 on Vista, please contact Gregory G. Marlier at (720)
981-1185, or visit the Vista Gold Corp. website at
http://www.vistagold.com/. DATASOURCE: Vista Gold Corp. CONTACT:
Gregory G. Marlier of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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