DENVER, March 7, 2011 /PRNewswire/ -- Vista Gold Corp.
(TSX & NYSE Amex Equities: VGZ) ("Vista" or the
"Corporation") is pleased to announce that it has repaid its
U.S. $23 million principal amount of
outstanding 10% senior secured convertible notes (the
"Notes") (plus accrued interest) which matured on
March 4, 2011. These payments
were made using available cash and did not require any borrowing.
Final cancellation of the Notes depends upon the completion
of certain administrative duties of HSBC Bank USA, N.A. (the
"Trustee"), pursuant to Article 8 of the note indenture,
dated March 4, 2008 (the "Note
Indenture"), among Vista, Vista's Mexican operating subsidiary,
Minera Paredones Amarillos S.A. de C.V., as guarantor (which has
subsequently changed its name to Desarrollos Zapal S.A. de C.V.,
the "Guarantor"), the Trustee and HSBC Mexico, S.A. De C.V., Institucion de Banca Multiple,
Grupo Financiero HSBC, Division Fiduciaria, as collateral agent
(the "Collateral Agent").
Vista's obligations under the Notes were guaranteed by the
Guarantor and the guarantee was secured by the personal property
and real property associated with Vista's Concordia gold project. Pursuant to the
Note Indenture, payment of the principal and interest on the Notes,
in full, constitutes satisfaction and discharge of the guarantee
and security interest and the Collateral Agent has been instructed
to complete such instruments as are necessary to release or
reconvey to the Guarantor all of the pledged assets freed and
discharged from these security interests.
See our press releases dated February 12,
2008, and March 7, 2008 for
additional information on the Notes.
Mike Richings, Vista's Chairman
and Chief Executive Officer, stated: "With the repayment of
the Notes, Vista has significantly strengthened its financial
position. We have lowered our financing costs and simplified our
capital structure. Vista is now debt free and focused on pursuing
its 2011 development plans, including advancing a bankable
feasibility study for the Mt. Todd gold project and, upon
completion of Vista's previously announced combination with Midas
Gold, Inc., supporting Midas Gold's development of the Golden
Meadows Project in Idaho.
We've initiated an exploration program on our Guadalupe de
los Reyes prospect in Mexico and
remain ready to launch our Concordia gold project in Baja California Sur if and when we receive the
remaining permits. Vista is fortunate to have assembled an
attractive portfolio of gold assets, at various stages of
development, and our goal is to continue building value for our
investors from all aspects of our portfolio."
About Vista Gold Corp.
Vista is focused on the development of the Concordia gold project in Baja California Sur, Mexico, and the Mt. Todd
gold project in Northern Territory, Australia, to achieve its goal of becoming a
gold producer. Vista's other holdings include the Guadalupe de los
Reyes gold project in Mexico, the
Yellow Pine gold project in
Idaho, the 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, as amended, and
U.S. Securities Exchange Act of 1934, as amended, 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 advancing a bankable feasibility study for the Mt. Todd gold
project, supporting Midas Gold's development of the Golden Meadows
Project in Idaho, the
completion of the combination with Midas Gold, the exploration of
the Guadalupe de los Reyes prospect, the launch of the Concordia project and receipt of the necessary
permits at the Concordia project,
estimates of mineral resources, the conversion of inferred
resources to measured and indicated resources, the conversion of
mineral resources to mineral reserves, and other such matters are
forward-looking statements and forward-looking information.
When used in this press release, the words "optimistic",
"potential", "indicate", "expect", "intend", "hopes," "believe,"
"may," "will," "if, "anticipate" 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 related to the timing and completion
of the bankable feasibility study at the Mt. Todd gold project,
Vista's, Midas' or Midas Gold's acquisition, exploration and
property efforts will not be successful, risks that may affect
Vista's or Midas' ability to complete the combination, including
risks that Midas may be unable to obtain the required shareholder
approval, risks related to the timing and receipt of permits at the
Concordia gold project and risks
related to the launch of the Concordia gold project, uncertainty of reserve
and resource estimates, estimates of results based on such reserve
and resource and reserve estimates; risks relating to completing
metallurgical testing; uncertainty of future feasibility study
results; risks relating to cost increases for capital and operating
costs including cost of power; risks relating to fluctuations in
the price of gold; the inherently hazardous nature of
mining-related activities; 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 increased leverage and uncertainty of being able
to raise capital on favorable terms or at all; as well as those
factors discussed under the headings "Uncertainty of
Forward-Looking Statements" and "Risk Factors" in Vista's latest
Annual Report on Form 10-K as filed on March 16, 2010,
and Quarterly Report on Form 10-Q, as filed on
November 9, 2010, and other documents filed with the SEC 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. 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.
SOURCE Vista Gold Corp.