DENVER, Nov. 10 /PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex:
VGZ; TSX) provides the following updates on corporate activities,
principal project activities, and financial results for the three
and nine months ended September 30, 2008, which were filed on
November 7, 2008 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, and announces
management quarterly conference call scheduled for Thursday,
November 13, 2008 at 10:00 a.m. EST. Corporate Update During the
first three quarters of 2008 the Corporation's spending levels
reflected active programs at our Paredones Amarillos and Mt Todd
projects, designed to advance both projects towards production. As
a result of the permitting delay at the Paredones Amarillos project
(discussed in more detail below) and the current uncertainty in the
resource and financial markets, we have adopted a plan and budget
for the last quarter of 2008 and 2009 reflecting these realities.
Our plans are designed to ensure that we have the financial
resources to generate significant improvements in the value of our
projects in the event that gold prices increase in the future. In
the short term, we will continue those programs necessary to
expedite the development and commencement of construction at the
Paredones Amarillos project, while minimizing expenditures in other
areas. When the final permit is obtained and financial markets have
improved, we will seek appropriate financing. Our budget estimates
indicate, that in the event we decide not to build a mine at our
Paredones Amarillos project in 2009, we would end 2009 with a
healthy cash balance, without the need for any additional
financing. In other areas, we plan to continue as we have in the
past; improving the value of our assets, looking for opportunities
to add value and resources, and managing the company
conservatively. In September 2008 we received repayment of a loan
of US$350,000, plus interest, made to Republic Gold Limited at the
time of their purchase from us of the Amayapampa gold project in
Bolivia. Republic's management has informed us that they are making
good progress on their studies and are planning for gold production
to begin in late 2010. Their public disclosure indicates they have
sufficient cash reserves to finish the feasibility study. As
previously announced, Republic has agreed to pay Vista a total of
US$3 million in cash, commencing with a payment of US$1 million at
the start of commercial production and a royalty ranging from 2% to
3.5% when gold prices are between $500.01 and $750 per ounce.
Paredones Amarillos On September 8, 2008 Vista announced the
results of a bankable feasibility study and provided an update on
the permitting of the Paredones Amarillos project filed with SEDAR
on October 22, 2008. In this and previous press releases, the
Corporation has indicated that it had decided to apply for a new
Change of Land Use Permit (CUSF), and we now can confirm this
application has been prepared. The law regulating CUSF applications
has changed since the original permit was awarded and the key issue
is that a higher standard is now applied to applicants regarding
the legal tenancy of the surface. Vista has in place agreements
regarding the entire applicable surface; however some of the
surface occupants with whom Vista has agreements do not themselves
have legal title. To ensure there is no basis for rejection, Vista
has presented the application for and expects to receive a
Temporary Occupation Permit (TOP) for the use of the federal land
which overlies the deposit. We are also in final negotiations to
purchase the land required for the process plant and tailings
impoundment facility. When the TOP and the land acquisition are
completed, Vista will be in a position to submit the CUSF permit
application. We have obtained the necessary environmental permits
and all other pre-requisites for the CUSF application. We expect
the TOP will be issued and the CUSF application submitted prior to
the end of the year. We expect the processing of the CUSF
application to be complete by the end of the first quarter. We are
continuing to work towards submitting the CUSF application prior to
the issuance of the TOP, thus gaining time by having two activities
in progress at the same time. Mt. Todd Vista has recently completed
a 14 hole, 9,006 meter core drilling program at the Mt. Todd
project. Drill hole assay results for the first five holes were
announced on July 21, and September 3, 2008. These results showed
better grades of copper and gold at depth than previously expected.
We are currently compiling the results from a further seven holes.
and these will be released in the near future. Vista intends to
complete a new resource study which it expects will increase both
estimated Measured and Indicated resources and total gold mineral
resources of the Batman deposit. A metallurgical testing program
using the core obtained in the 2007 and 2008 drilling programs is
still in progress. The goals of the program are to confirm earlier
tests that showed that flotation technology could be employed to
recover both gold and copper and to determine other key processing
parameters, including energy requirements. The preliminary results
of the current program show that flotation can be successfully
employed to recover both copper and gold into a bulk concentrate,
however not all ore types can be treated to produce an acceptable
copper concentrate product. Samples from this year's drill program
are being used to evaluate alternate process technologies and
identify an acceptable process flow sheet for these ore types.
Preliminary tests using High Pressure Grinding Rolls (HPGR) have
been very successful, indicating a reduction in crushing and
grinding energy requirements compared to conventional technologies
of approximately 30% and producing a product that responds better
to flotation recovery methods. We also plan to conduct additional
studies in 2009 which we hope will lead to the completion of a
preliminary feasibility study for a project similar in scope to
that considered in the previously published preliminary assessment
(January 4, 2007). Financial Results (All figures are in United
States dollars unless otherwise noted) Our consolidated net loss
for the three-month period ended September 30, 2008 was $2.8
million or $0.08 per share, compared to a consolidated net loss of
$2.0 million or $0.07 per share for the same period in 2007. Our
consolidated net loss for the nine-month period ended September 30,
2008 was $7.0 million or $0.20 per share, compared to a
consolidated net loss of $5.4 million or $0.19 per share for the
same period in 2007. Net cash used in operating activities was $1.7
million for the three-month period ended September 30, 2008,
compared to $1.0 million for the same period in 2007. Net cash used
in operating activities was $5.0 million for the nine- month period
ended September 30, 2008, compared to $4.1 million for the same
period in 2007. Net cash used in investing activities increased to
$3.3 million for the three-month period ended September 30, 2008,
from $1.3 million for the same period in 2007. Net cash used for
investing activities decreased to $24.7 million for the nine-month
period ended September 30, 2008, from $29.5 million for the same
period in 2007. The net cash used for investing activities for the
nine-month period of $24.7 million was used for: investments or
gains in marketable securities of $37,000; capitalized additions to
mineral properties of $7.0 million (Mt. Todd - $3.8 million,
Paredones Amarillos - $2.5 million, Awak Mas - $370,000 and other
projects - $330,000); acquisition of properties adjacent to
Guadalupe de los Reyes of $452,000; and additions to plant and
equipment of $17.2 million (Paredones Amarillos - $16.9 million).
Net cash provided by financing activities was $70,000 for the
three-month period ended September 30, 2008, as compared to net
cash provided by financing activities of $1.9 million for the same
period in 2007. Net cash provided by financing activities was $31.5
million for the nine-month period ended September 30, 2008, as
compared to $3.4 million for the same period in 2007. This increase
is primarily the result of the completion of a brokered private
placement on March 4, 2008 in which we offered and sold $30.0
million aggregate principal amount of senior secured convertible
notes. Proceeds to Vista after legal and other fees were $28.4
million. There were no similar transactions during the 2007 period.
At September 30, 2008, our total assets were $79.0 million compared
to $51.3 million at December 31, 2007, representing an increase of
$27.7 million. At September 30, 2008, we had working capital of
$27.2 million compared to $27.3 million at December 31, 2007. The
principal component of working capital at both September 30, 2008
and December 31, 2007, is cash and cash equivalents of $18.2
million and $16.7 million, respectively. Other components include
marketable securities (September 30, 2008 - $9.5 million; December
31, 2007 - $10.9 million) and other assets (September 30, 2008 -
$755,000; December 31, 2007 - $380,000). Selected Financial Data
Three Months Ended Nine Months Ended September 30, September 30,
2008 2007 2008 2007 U.S. $000's, except loss (restated) (restated)
per share Results of operations Net loss $ (2,823) $ (2,035)
$(6,994) $ (5,417) Basic and diluted loss per share (0.08) (0.07)
(0.20) (0.19) Net cash used in operations (1,706) (956) (4,985)
(4,087) Net cash used in investing activities (3,342) (1,301)
(24,650) (29,526) Net cash provided by financing activities 70
1,902 31,470 3,414 Financial position September December 30, 2008
31, 2007 (restated) Current assets $28,501 $27,948 Total assets
79,020 51,346 Current liabilities 1,326 694 Total liabilities
24,298 694 Shareholders' equity 54,722 50,652 Working capital
27,175 27,254 Management Discussion & Analysis and Conference
Call To review Vista's Form 10-Q for the Third Quarter 2008,
including Management Discussion & Analysis, visit either
http://www.sedar.com/, http://www.sec.gov/edgarhp.htm or our
website http://www.vistagold.com/. A conference call with
management to review Third Quarter 2008 financial results and
corporate and project activities is scheduled on Thursday, November
13, 2008 at 10:00 a.m. EST. Toll-free in North America:
1-866-782-8903 International: 1-647-426-1845 This call will also be
web-cast and can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=247 This call will
be archived and available at http://www.vistagold.com/ after
November 13, 2008. Audio replay will be available for three weeks
by calling in North America: 1-866-245-6755, passcode 571610. If
you are unable to access the audio or phone-in on the day of the
conference call, please feel free to email questions, prior to the
conference call, addressed to Connie Martinez, Manager - Investor
Relations, (email: ) and we will try to address these questions
prior to or during the conference call. About Vista Gold Corp.
Since 2001, Vista has acquired a number of gold projects with the
expectation that higher gold prices would significantly increase
their value. For more information about our projects, including
technical studies and resource estimates, please visit our website
at http://www.vistagold.com/. Vista is undertaking programs to
advance the Paredones Amarillos Project and has completed a
bankable feasibility study and purchased certain long delivery
equipment items for use at the project. Vista's goal is to be in
production at the Paredones Amarillos Project during 2010.
Preliminary assessment for the Mt. Todd Project in Australia was
completed in 2007 and additional technical studies are underway,
with the preparation of a preliminary feasibility study targeted
for 2009. Vista's other holdings include the Guadalupe de los Reyes
Project in Mexico, Yellow Pine Project in Idaho, the Awak Mas
Project in Indonesia, and the Long Valley Project in California.
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 and
forward-looking information within the meaning of Canadian
securities laws. 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 financial and operating results and estimates; potential funding
requirements and sources of capital; plans for budgeting financial
recoveries; the timing, performance and results of feasibility
studies including the timing and receipt of required land use,
environmental and other permits for the Paredones Amarillos Project
and timing for starting and completion of drilling and testing
programs at the Paredones Amarillos Project; plans to confirm the
validity of the Change of Land Use Permit and to obtain the
Temporary Occupation Permit for the Paredones Amarillos Project and
timing for confirmation of the status of such permits; anticipated
timing of commencement of construction and commencement of
production at the Paredones Amarillos Project; plans for evaluation
of the Mt. Todd Project including estimates of silver, copper and
gold resources; preliminary assessment results; results of drilling
programs and prospects for exploration and conversion of resources
at the Mt. Todd Project and plans for a feasibility study at the
Mt. Todd Project; potential for gold production at the Amayapampa
gold project and timing for commencement of production and timing
and receipt of future payments in connection with the disposal of
the Amayapampa gold project; Vista's future business strategy;
competitive strengths; goals; operations; reserve and resource
estimates; plans; potential project development; future share price
and valuation; future gold prices; Vista's potential status as a
producer including plans, timing and targeted initial production
levels; and other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "estimate", "plan", "anticipate", "expect", "intend",
"believe" and similar expressions are intended to identify
forward-looking statements and forward- looking information. 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
statements. Such factors include, among others, risks relating to
general economic conditions, delays and incurrence of additional
costs in connection with our Paredones Amarillos Project, including
uncertainty relating to timing and receipt for required
governmental permits; uncertainty relating to timing and receipt
for confirmation of the validity of the Change of Land Use Permit
for the Paredones Amarillos Project, uncertainty of feasibility
study results and preliminary assessments and of estimates on which
such results are based; risks relating to delays in commencement
and completion of construction at the Paredones Amarillos Project
and Mt. Todd Project; risks of significant cost increases; risks of
shortages of equipment or supplies; 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;
risks relating to political and economic instability in certain
countries in which it operates; risks related to repayment of debt;
risks related to increased leverage; 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 and Canadian securities
commissions. Although Vista has attempted to identify important
factors that could cause actual results to differ materially from
those described in forward-looking statements and forward-looking
information, 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. Except as required by law, Vista assumes no
obligation to publicly update any forward- looking statements or
forward-looking information, whether as a result of new
information, future events or otherwise. For further information
visit the website at http://www.vistagold.com/. DATASOURCE: Vista
Gold Corp. CONTACT: Connie Martinez for Vista Gold Corp.,
+1-720-981-1185 Web site: http://www.vistagold.com/
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