DENVER, May 6, 2011 /PRNewswire/ -- Vista Gold Corp. (TSX
& NYSE Amex Equities: VGZ) ("Vista" or the "Company") announced
that Michael B. Richings, Vista's
CEO and Executive Chairman and Frederick H.
Earnest, Vista's President and COO have been appointed to
the board of directors of Midas Gold Corp. ("Midas"), a Canadian
private company.
As previously announced on April 6,
2011, Vista and Midas completed a transaction to combine
Midas' Hangar Flats and West End deposits with Vista's Yellow Pine deposit in Idaho to form the newly named Golden Meadows
project under the direction and management of Midas (the
"Combination"). Concurrent with the Combination, Midas
completed a private placement of 6,129,800 common shares of in the
capital of Midas ("Midas Shares") at a purchase price of
Cdn.$2.50 per Midas Share to raise
gross proceeds of Cdn.$15,324,500
(the "Private Placement"). Vista currently holds 31,802,615
Midas Shares, which immediately following the completion of the
private placement represented 37.4% of the issued and outstanding
Midas Shares (34.2% on a fully diluted basis). Based on the
Private Placement offering price, Vista's ownership of Midas
currently represents a value of approximately Cdn.$80.0 million [or a value of Cdn$1.13 per issued share of Vista]. Based
on our expectations of the exploration potential of the Golden
Meadows project, Vista believes that our investment in Midas has
potential to increase in value over time.
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-silver project in
Mexico, the Awak Mas gold project
in Indonesia, and the Long Valley
gold project in California.
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 potential value of Vista's investment in Midas 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," "could", "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, uncertainty regarding the future
value of the Midas shares; 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 U.S. 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. 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
SOURCE Vista Gold Corp.