Midas Gold Corp. IPO Values Vista Gold Investment at Cdn$103 Million
15 Juli 2011 - 12:31AM
PR Newswire (Canada)
DENVER, July 14, 2011 /CNW/ -- Vista Gold Corp. (TSX & NYSE
Amex Equities: VGZ) ("Vista" or the "Corporation") today announced
that Midas Gold Corp. ("Midas") has successfully completed an IPO,
issuing 12,307,700 common shares of Midas ("Midas Shares") for
gross proceeds of Cdn$40,000,025 million. Midas Shares began
trading on the Toronto Stock Exchange today under the symbol "MAX."
Vista owns 31,802,615 Midas Shares, which following the completion
of Midas' IPO represents 30.7 % of the issued and outstanding
shares of Midas. Based on the IPO price of Cdn$3.25 per share,
Vista's investment in Midas is expected to have a value of
Cdn$103,358,499 and based on the number of issued common shares of
Vista, this is equivalent to Cdn$1.45 per Vista share. In April
2011, through a combination transaction, Vista and Midas Gold, Inc.
consolidated their respective mineral properties in the
Stibnite-Yellow Pine gold district in Idaho to form what is now
called the Golden Meadows Project. The combination transaction
resulted in Midas owning the Golden Meadows Project. Fred Earnest,
Vista's President and COO, commented, "We congratulate Stephen Quin
and the Midas team on a well-executed IPO. We believe that the
consolidation and IPO confirms our view of the significant value of
our prior holdings in the Yellow Pine district. We also believe
that the Golden Meadows Project has substantial upside potential.
Midas has announced that they will be undertaking a major
exploration program in 2011 designed to increase the confidence
level of the known mineral resources, expand the known deposits,
and test for potential new deposits in the district. Our investment
in Midas is an important asset for Vista and its shareholders and
represents a potential return worth many times our investment in
the Yellow Pine property. We hope our investment in Midas will
continue to grow as Midas experiences expected continued successes
as it accelerates the exploration and development of the Golden
Meadows Project." About Vista Gold Corp. During the period
2002-2006, Vista acquired a number of gold properties containing
well understood and defined mineral resources, at low prices
compared to today. In 2007, Vista completed a transaction, in which
Vista contributed its extensive Nevada gold mining interests to
form Allied Nevada Gold Corp. ("ANV"). Following the formation of
ANV, Vista made a substantial return to its shareholders in the
form of common shares of ANV. Since that time, Vista has been
adding value to its remaining properties through transactions and
advancing the development of the Mt. Todd gold project in Northern
Territory, Australia, and the Concordia gold project in Baja
California Sur, Mexico, towards a production decision. Recently,
Vista has added substantially to its balance sheet through its
investment in Midas Gold Corp. In April 2011, Vista participated in
a transaction that combined Vista's holdings in Idaho with that of
Midas Gold, Inc. to form Midas. 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 does not constitute an offer to sell
or the solicitation of an offer to buy any securities. The Midas
Gold securities have not been registered under the U.S. Securities
Act of 1933, as amended, or any state securities laws and can not
be offered or sold in the United States absent such registration or
an exemption from such registration requirements. 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 value of the Golden Meadows project, the upside
potential at the Golden Meadows project, the completion and results
of Midas's drilling program at the Golden Meadows project, the
potential to increase and better define current estimated gold
mineral resources, the potential to make new discoveries in the
Golden Meadows project district, the expected success the Midas's
exploration and development of the Golden Meadows project and 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, risks related to Midas's exploration and
development activities, uncertainty regarding the outcome of
exploration programs, uncertainty regarding estimates of mineral
resources, risk and 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 DENVER, July 14, 2011 /CNW/ -- Web Site:
http://www.vistagold.com
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