Vista Gold Corp. Announces Repayment of Its 10% Senior Secured Convertible Notes due March 4, 2011
07 März 2011 - 1:01PM
PR Newswire (Canada)
DENVER, March 7, 2011 /CNW/ -- 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. Connie Martinez of Vista Gold Corp., +1-720-981-1185 Web
Site: http://www.vistagold.com
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