DENVER, March 16, 2011 /CNW/ -- Vista Gold Corp. ("Vista" or the
"Company") (NYSE Amex and TSX: VGZ) today provided an overview of
the Company's recent operating highlights and selected financial
results for the year ended December 31, 2010. The Company's full
financial results can be found in the Company's Annual Report on
Form 10-K, filed with the U.S. Securities and Exchange Commission
(the "SEC") and the Canadian securities regulatory authorities on
March 14, 2011. Recent Highlights Include: -- Results of a
Preliminary Feasibility Study at the Batman Deposit located at our
Mt. Todd gold project doubled our previously reported estimated
proven and probable reserves. Please refer to our press release
dated August 18, 2010 for further details on the Preliminary
Feasibility Study. -- Vista and Midas Gold Inc. ("Midas") entered
into a Combination Agreement, that if completed, would result in
the combination of interests in the Yellow Pine-Stibnite District
to form the new Golden Meadows Project (the "Combination"), and
announced the resource estimates for the proposed new project. The
Combination is subject to closing conditions and approvals,
including the approval of Midas' shareholders. See our press
releases dated February 23, 2011 and March 2, 2011 for additional
information on the Combination and the resource estimates for the
proposed new project. -- Repayment of the principal amount of US$23
million of our senior secured convertible notes (the "Notes") (with
accrued interest) at maturity on March 4, 2011. -- Our common share
purchase warrants issued as part of the special warrant private
placement offering in October 2010 started trading on March 14,
2011 on the TSX under the symbol VGZ.WT.S. Commenting on the
Company's achievements and results, Mike Richings, Executive
Chairman and CEO, noted: "While we continue to advance the
permitting for our Concordia gold project in Mexico, we dedicated
much of 2010 to developing the other important projects in our
portfolio. In Australia, we have successfully completed two
positive preliminary feasibility studies for the Mt. Todd gold
project and have discovered new exploration targets on our
exploration leases. We have commenced the bankable feasibility
study and the permitting process for the Mt. Todd gold project. We
plan to complete the study by the end of 2011 and expect permitting
to be completed in the first half of 2012. In February, we
announced the entry into a Combination Agreement in relation to our
proposed transaction to combine our Yellow Pine gold project with
the Idaho holdings of Midas Gold Inc. to form a new company, Midas
Gold Corp. In much the same way that our spin-off of Allied Nevada
unlocked the inherent value in our previously held Nevada
properties and Hycroft Mine, we believe the combination with Midas
is key to unlocking the full potential value of Yellow Pine and the
Yellow Pine-Stibnite District. Our Concordia gold project continues
to have strong economics at current gold prices. As we already own
some key, long-delivery pieces of milling equipment, we are ready
to move forward once we receive the permits. In the meantime, we
are initiating an exploration program at our Guadalupe de los Reyes
gold and silver project also in Mexico. The planned exploration
program has the potential to expand the project's current estimated
gold and silver resources. Finally, and importantly, Vista is now
debt free, and we can continue to focus on building value for our
investors from all aspects of our portfolio." Selected 2010 Results
from Operations and Financial Data For 2010, Vista posted a net
loss of US$9.6 million, or US$0.20 per share, as compared to a net
loss of US$1.9 million, or US$0.05 per share for the same period in
2009. The increased net loss in 2010 was attributed primarily to a
decrease in the gain on disposal of marketable securities of US$6.5
million. The gain during 2009 was mostly the result of the sale of
the Company's Allied Nevada Gold Corp. ("Allied") shares which were
retained in connection with the transaction that resulted in the
formation of Allied and the transfer of Vista's Nevada properties
to Allied. Also contributing to the net loss for 2010 was an
increase in the loss on extinguishment of convertible debt of
US$2.5 million, a non-cash item. Exploration, property evaluation
and holding costs Exploration, property evaluation and holding
costs increased to US$2.1 million during the year ended December
31, 2010, as compared with $1.5 million for the same period in
2009. The increase during 2010 was primarily due to an increase in
holding costs at the Concordia gold project of US$700,000 which
reflects increasing administrative and legal costs for activities
related to permitting and community relations, which was offset by
a decrease in holding costs at the PT Masmindo gold project of
US$61,000. Corporate administration and investor relations
Corporate administration and investor relations costs decreased to
US$4.3 million during the year ended December 31, 2010, compared
with US$4.6 million in 2009. The decrease as compared to the prior
period was primarily due to a decrease in stock-based compensation
expense of US$389,000. Interest expense Interest expense was US$1.7
million during the year ended December 31, 2010, as compared to
US$2.3 million in 2009. Reduced interest expense in 2010 is
primarily attributed to the repurchase of US$5.7 million of the
Notes in May 2010. Marketable Securities At December 31, 2010,
Vista held marketable securities available for sale with a quoted
market value of US$1.7 million. Vista purchased the securities for
investing purposes with the intent to hold the securities until
such time as it would be advantageous to sell the securities at a
gain. Notes On May 20, 2010, the Company entered into a notes
repurchase agreement (the "Agreement") with Whitebox Advisors LLC
("Whitebox") whereby Vista agreed to repurchase the remaining Notes
held by Whitebox. Pursuant to the Agreement, Vista agreed to
repurchase Notes in the principal amount of US$5.7 million and
interest payable through maturity on the Notes of US$691,000. Vista
agreed to pay Whitebox US$2.2 million in cash and to issue
1,902,684 in Common Shares to Whitebox as consideration. Financial
Position, Liquidity and Capital Resources Operating Activities Net
cash used in operating activities in 2010 was US$8.7 million, as
compared with US$7.9 million in 2009. Investing Activities Net cash
used in investing activities in 2010 was US$11.0 million, as
compared with net cash provided by investing activities of US$3.3
million in 2009. The increase of US$14.3 million in cash used by
investing activities in 2010 was mostly the result of the
following: -- A decrease in the proceeds from the sale of
marketable securities of US$8.7 million. On April 3, 2009, the
Company sold all 1,529,848 common shares of Allied that it held for
approximately US$9.0 million; -- An increase in cash used for
additions to mineral properties of US$5.7 million. During the 2010
period, Vista undertook an exploration and development drilling
program at the Mt. Todd gold mine. There were no similar programs
during the 2009 period; and -- A decrease in the proceeds received
upon the disposal of a mineral property. In June 2009, Vista sold
most of its remaining patented mining claims in Colorado for
US$188,000. There were no similar transactions during the 2010
period. Financing Activities Net cash provided by financing
activities was US$31.1 million for the year ended December 31,
2010, as compared to US$19.8 million in 2009. The increase of
US$11.3 million was primarily the result of the completion of the
October 2010 private placement of special warrants in which Vista
offered and sold 14,666,739 special warrants for net proceeds after
legal and other fees of US$33.3 million, as compared to the
completion of public offerings in September of 2009 in which Vista
offered and sold an aggregate 10.12 million Common Shares, for net
proceeds of US$20.4 million. Liquidity and Capital Resources At
December 31, 2010, Vista's total assets were US$120.4 million, as
compared to US$92.6 million as of December 31, 2009. There were no
long-term liabilities at December 31, 2010. Long-term liabilities
totaled US$25.2 million at December 31, 2009. At December 31, 2010,
Vista had working capital of US$18.5 million, as compared to
US$29.4 million on December 31, 2009. DENVER, March 16, 2011 /CNW/
-- Years ended Selected Financial Data December 31,
----------------------- ------------ US $000's, except loss per
share 2010 2009 -------------------------- ---- ---- Results of
operations Net loss $(9,614) $(1,942) Basic and diluted loss per
share $(0.20) $(0.05) Net cash used in operations $(8,671) $(7,883)
Net cash provided by (used in) investing activities (11,008) 3,268
Net cash provided by financing activities 31,109 19,757 Financial
position Current assets $42,625 $30,317 Total assets 120,442 92,573
Current liabilities 24,135 926 Total liabilities 24,135 26,093
Shareholders' equity 96,307 66,480 Working capital $18,490 $29,391
Management Discussion & Analysis and Conference Call To review
Vista's Form 10-K for the fiscal year ending December 31, 2010,
including our Management Discussion & Analysis, visit
www.sec.gov, www.sedar.com, or www.vistagold.com. A conference call
with management to review our year-end financial results for 2010
and corporate and project activities is scheduled on Thursday March
17, 2011 at 9:00 a.m. MDT. 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=1647 This call will
be archived and available at www.vistagold.com after March 22,
2011. Audio replay will be available for three weeks by calling in
North America: 1-866-245-6755, passcode 118942 About Vista Gold
Corp. Vista is focused on the development of the Mt. Todd gold
project in Northern Territory, Australia, and the Concordia gold
project in Baja California Sur, Mexico, 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. For more information about
our projects, including technical studies and resource estimates,
please visit our website at www.vistagold.com. Cautionary note to
U.S. investors concerning estimates of reserves and resources: This
press release and the Preliminary Feasibility Study referred to in
this press release use the term "proven and probable reserves" and
"mineral reserves". We advise U.S. investors that while these terms
are defined in and required by Canadian regulations, such
definitions differ from the definitions in U.S. Securities and
Exchange Commission ("SEC") Industry Guide 7. Under SEC Industry
Guide 7 standards, a "final" or "bankable" feasibility study is
required to report reserves, the three-year historical average
price is used in any reserve or cash flow analysis to designate
reserves and the primary environmental analysis or report must be
filed with the appropriate governmental authority. U.S. investors
are cautioned not to assume that any part or all of mineral
deposits in this category will ever be converted into SEC Industry
Guide 7 reserves. This press release uses the term "resources." We
advise U.S. investors that while this term is defined in and
required by Canadian regulations, these terms are not defined terms
under SEC Industry Guide 7 and are normally not permitted to be
used in reports and registration statements filed with the SEC. The
SEC normally only permits issuers to report mineralization that
does not constitute SEC Industry Guide 7 compliant "reserves" as
in-place tonnage and grade without reference to unit measures. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into SEC
Industry Guide 7 reserves. 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, the timing and completion of the bankable
feasibility study at the Mt. Todd gold project, the timing and
completion of the permitting of the Mt. Todd and Concordia gold
projects, the timing and completion of the combination with Midas
Gold Inc,, the potential value of the combination with Midas Gold
Inc., the completion of the current exploration project at the
Guadalupe de los Reyes gold and silver project, the potential
expansion of the resource estimate at the Guadalupe de los Reyes
gold and silver project, and resource and reserve estimates , and
other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "potential", "indicate", "expect", "intend", "plan",
"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, factors affecting the timing and completion
of the Mt. Todd bankable feasibility study, risks and uncertainties
regarding the timing and completion of the permitting at the
Concordia and Mt. Todd gold projects, uncertainty regarding
shareholder and regulatory approvals of the combination with Midas
Gold Inc., uncertainty regarding the future value of the combined
Midas Gold Corp., risks and uncertainty regarding the drilling
program at Guadalupe de los Reyes, uncertainty of resource and
reserve estimates, estimates of results based on such resource and
reserve estimates, risks relating to cost increases for capital and
operating costs, , risks of shortages and fluctuating costs of
equipment or supplies, 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, and
uncertainty of being able to raise capital on favorable terms or at
all; as well as those factors discussed under the headings "Note
Regarding Forward-Looking Statements" and "Risk Factors" in Vista's
latest Annual Report on Form 10-K as filed on March 14, 2011, and
other documents filed with the SEC 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. 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
www.vistagold.com. Connie Martinez of Vista Gold Corp.,
+1-720-981-1185 Web Site: http://www.vistagold.com
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