DENVER, Nov. 9 /PRNewswire-FirstCall/ -- Vista Gold Corp. (TSX
& NYSE Amex: VGZ) ("Vista or the "Corporation") provides
financial results for the three and nine months ended September 30,
2009, which were filed on November 9, 2009, with the US Securities
and Exchange Commission and with the relevant securities regulatory
authorities in Canada in the Corporation's Quarterly Report on Form
10-Q, and announces management's quarterly conference call
scheduled for Wednesday, November 11, 2009 at 10:00 a.m. EST.
Financial Results All amounts are in thousands of US Dollars
(US$000's), except per share amounts and unless noted otherwise.
Our consolidated net loss for the three-month period ended
September 30, 2009, was $1,717 or $0.05 per share compared to a
consolidated net loss of $2,823 or $0.08 per share for the same
period in 2008. Our consolidated net earnings for the nine-month
period ended September 30, 2009, was $293 or $0.01 per share
compared to a consolidated net loss of $6,994 or $0.20 per share
for the same period in 2008. For the three-month period, the
decrease in the consolidated net loss of $1,106 from the prior
period is primarily due to a gain of $537 on the repurchase of the
senior subordinated convertible notes ("Notes"). On July 14, 2009,
we repurchased $1,333 of our Notes for $866, which resulted in a
gain. Also, contributing to the decrease in the consolidated net
loss for the three-month period was an increase in the gain on
currency translation of $256 and a decrease in corporate
administration and investor relations of $419; these amounts were
partially offset by an increase in exploration, property evaluation
and holding costs of $167. The increase in the consolidated net
earnings of $7,287 for the nine-month period from the prior year
period is largely due to a gain on disposal of marketable
securities of $6,829. The gain was the result of the sale of our
Allied Nevada Gold Corp. ("Allied") shares which we retained in
connection with the transaction that resulted in the formation of
Allied and the transfer of Vista's Nevada properties to Allied. Net
cash used in operating activities was $964 for the three-month
period ended September 30, 2009, compared to $1,706 for the same
period in 2008. The decrease of $742 is mostly the result of a
decrease in cash used for accounts payable, accrued liabilities and
other of $588, a decrease in cash used for prepaid expenses and
other of $178, which was offset by an increase in cash used for
accounts receivable of $37 and an increase in interest paid on our
Notes of $11. Net cash used in operating activities was $5,189 for
the nine-month period ended September 30, 2009, compared to $4,985
for the same period in 2008. The increase of $204 is mostly the
result of the increase in interest paid of $669 on the Notes. Net
cash used in investing activities decreased to $1,454 for the
three-month period ended September 30, 2009, as compared to $3,342
for the same period in 2008. The decrease in cash used in investing
activities of $1,888 is due to the following: -- A decrease in cash
used for additions to mineral properties of $1,742. During the 2008
period, we undertook a drilling program at the Mt. Todd gold mine
and were in the process of completing a feasibility study for the
Paredones Amarillos gold project. These projects were completed
during 2008. -- A decrease in cash received from short-term loans
of $350. In connection with the sale of our Amayapampa gold project
in April 2008, we loaned to Republic Gold Limited $350 to cover
ongoing expenses at the Amayapampa gold project. They repaid this
amount during the three-month period ended September 30, 2008. Net
cash provided by investing activities increased to $5,805 for the
nine-month period ended September 30, 2009, as compared to net cash
used in investing activities of $24,650 for the same period in
2008. The increase in cash provided by investing activities of
$30,455 is primarily the result of the following: -- A decrease in
the additions to plant and equipment of $16,746. During 2008, we
completed a brokered private placement of $30,000 principal amount
of Notes and used $16,000 of the proceeds towards the purchase of
gold processing equipment to be used at our Paredones Amarillos
gold project, which included the costs of relocating the equipment
to Edmonton, Alberta, Canada. There was no similar purchase during
the nine-month period ended September 30, 2009. -- A decrease in
the acquisition of mineral property of $452. On January 24, 2008,
we completed the acquisition of interests in various mineral
properties adjacent to our Guadalupe de los Reyes gold project in
Mexico. The consideration paid by Vista for the acquisition of
these interests included cash payments totaling $452. There was no
similar purchase during the nine-month period ended September 30,
2009. -- An increase in the proceeds from the sale of marketable
securities of $8,966. On April 3, 2009, we sold all 1,529,848
common shares of Allied we held for $9,016. -- An increase in the
proceeds received upon the disposal of mineral property. In June
2009, we sold most of the remaining patented mining claims in
Colorado for $188. There were no similar transactions during the
2008 period. -- A decrease in cash used for additions to mineral
properties of $3,986. During the 2008 period, we undertook a
drilling program at the Mt. Todd gold mine and were in the process
of completing a feasibility study for the Paredones Amarillos gold
project. These projects were completed during 2008. Net cash
provided by financing activities was $19,841 for the three-month
period ended September 30, 2009, as compared to net cash provided
by financing activities of $70 for the same period in 2008. This
increase is the result of the completion of a public offering on
September 21, 2009, and the completion of the over-allotment on
September 25, 2009, in which we offered and sold an aggregate 10.12
million common shares. Proceeds to Vista after commission and other
fees were $20.7 million ($20.5 million after fees paid subsequent
to September 30, 2009). There were no similar transactions during
the three-month period in 2008. Net cash provided by financing
activities was $19,841 for the nine-month period ended September
30, 2009, as compared to $31,470 for the same period in 2008. This
decrease is primarily the result of the completion of the public
offering and over-allotment as discussed during the three-month
period as compared to the completion of a brokered private
placement on March 4, 2008, in which we offered and sold $30,000 in
aggregate principal amount of the Notes. Proceeds to Vista after
legal and other fees were $28,390. There were no warrant exercises
or exercises of stock options during the three-month period ended
September 30, 2009, as compared to stock option exercises of $70
during the 2008 period. There were no warrant exercises during the
three-month period in 2008. There were no warrant exercises or
exercises of stock options during the nine-month period ended
September 30, 2009, as compared to stock option exercises of $139
and warrant exercises of $2,941 during the 2008 period. At
September 30, 2009, our total assets were $94,266 compared to
$75,765 at December 31, 2008, representing an increase of $18,501.
At September 30, 2009, we had working capital of $33,596 compared
to $21,209 at December 31, 2008, representing an increase of
$12,387. This increase relates primarily to an increase in our cash
balance from year end as a result of our public offering and the
over-allotment during September 2009. The principal component of
working capital at both September 30, 2009, and December 31, 2008,
is cash and cash equivalents of $33,723 and $13,266, respectively.
Other components include marketable securities (September 30, 2009
-- $791; December 31, 2008 -- $8,153) and other liquid assets
(September 30, 2009 - $600; December 31, 2008 - $593). On September
21, 2009, we announced the closing of our previously announced
public offering of common shares. We sold to Dahlman Rose &
Company and Wellington West Capital Markets, as underwriters, 8.8
million common shares at a price of $2.25 per common share. We
granted the underwriters a 30-day option to purchase up to 1.32
million additional common shares to cover over-allotments, if any.
On September 25, 2009, we announced the closing of the sale of 1.32
million common shares, pursuant to the underwriters' exercise of
the over-allotment option, which Vista granted in connection with
its public offering of common shares. Consistent with the public
offering of common shares that closed on September 21, 2009, the
1.32 million common shares were sold to Dahlman Rose & Company
LLC and Wellington West Capital Markets, as underwriters, at the
public offering price of $2.25 per common share. The over-allotment
and the public offering were made pursuant to Vista's shelf
registration statement filed with the US Securities and Exchange
Commission and a shelf prospectus filed with certain Canadian
securities regulatory authorities. With the sale of the additional
1.32 million common shares to the underwriters pursuant to the
exercise by the underwriters of their over-allotment option, an
aggregate of 10.12 million common shares in total were sold in
connection with the offering. Proceeds to Vista from the offering,
net of commissions and fees, were approximately $20.5 million,
which includes net proceeds of approximately $2.7 million from the
sale of the 1.32 million common shares pursuant to the
underwriters' exercise of the over-allotment option. Vista intends
to use the net proceeds from the offering: (i) to fund drilling,
exploration, and engineering/technical activities (including the
preparation of a feasibility study) on its Mt. Todd gold project;
(ii) to fund the engineering, design and other technical activities
to advance its Paredones Amarillos gold project; (iii) to fund
exploration activities and if warranted, drilling programs at its
Guadalupe de los Reyes gold project and (iv) to fund acquisitions,
and further development of acquired mineral properties, working
capital requirements and/or for other general corporate purposes.
Selected Financial Three Months Ended Nine Months Ended Data
September 30, September 30, 2009 2008 2009 2008 U.S. $000's, except
loss per share Results of operations Net loss $(1,717) $(2,823)
$293 $(6,994) Basic and diluted loss per share (0.05) (0.08) 0.01
(0.20) Net cash used in operations (964) (1,706) (5,189) (4,985)
Net cash used in investing activities (1,454) (3,342) 5,805
(24,650) Net cash provided by financing activities 19,841 70 19,841
31,470 Financial position September 30, December 31, 2009 2008
Current assets $35,114 $22,012 Total assets 94,266 75,765 Current
liabilities 1,518 803 Total liabilities 25,983 24,527 Shareholders'
equity 68,283 51,238 Working capital 33,596 21,209 Management
Discussion & Analysis and Conference Call To review Vista's
Form 10-Q for the Third Quarter 2009, 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 2009 financial results and corporate and
project activities is scheduled on Wednesday, November 11, 2009 at
10:00 a.m. EST. Toll-free in North America: 1-866-443-4188
International: 1-416-849-6196 This call will also be web-cast and
can be accessed at the following web location:
http://www.snwebcastcenter.com/event/?event_id=631 This call will
be archived and available at http://www.vistagold.com/ after
November 11, 2009. Audio replay will be available for three weeks
by calling in North America: 1-866-245-6755, passcode 574222. 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. Since 2001, Vista has
acquired a number of gold projects with the expectation that higher
gold prices would 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 has
undertaken programs to advance the Paredones Amarillos gold
project, located in Baja California Sur, Mexico, including a
definitive feasibility study, the purchase of long delivery
equipment items, and the purchase of land for the processing
facilities, related infrastructure and the desalination plant. The
results of a preliminary economic assessment completed in 2009 on
the Mt. Todd gold project in Australia are encouraging and Vista is
undertaking other studies to advance the project, with the
completion of a preliminary feasibility study expected late in the
fourth quarter of 2009. Vista's other holdings include the
Guadalupe de los Reyes gold project in Mexico, Yellow Pine gold
project in Idaho, Awak Mas gold project in Indonesia, and the Long
Valley gold 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 future financial and operating results and estimates;
preliminary assessment results for the Mt. Todd gold project; and
plans and timing for a preliminary feasibility study at the Mt.
Todd gold project; Vista's future business strategy; goals;
operations; plans; potential project development; future gold
prices; Vista's potential status as a producer including plans and
timing of potential production; and other such matters are
forward-looking statements and forward-looking information. When
used in this press release, the words "estimate", "plan", "will",
"target", "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 gold project, including uncertainty
relating to timing and receipt for required governmental permits;
uncertainty relating to timing and outcome the application for the
Change of Forest Land Use Permit for the Paredones Amarillos gold
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 and Mt. Todd gold projects; 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, as amended and Quarterly
Report on Form 10-Q and other documents filed with the US
Securities and Exchange Commission and Canadian securities
regulatory authorities. 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, please contact Connie Martinez at (720) 981-1185, or
visit the Vista Gold Corp. website at http://www.vistagold.com/.
DATASOURCE: Vista Gold Corp. CONTACT: Connie Martinez of Vista Gold
Corp., +1-720-981-1185 Web Site: http://www.vistagold.com/
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