DENVER, Aug. 7, 2012 /PRNewswire/ -- Vista Gold Corp.
(the "Company," "we" or "our") (NYSE MKT and TSX: VGZ) today
announced its financial results and highlights for the second
quarter ended June 30, 2012.
Management's quarterly conference call to discuss these results is
scheduled for 9:00 a.m. MDT on
August 10, 2012. The Company's
full financial results, Management's Discussion and Analysis
together with other important disclosures can be found in the
Company's Quarterly Report on Form 10-Q, filed with the U.S.
Securities and Exchange Commission (the "SEC") and the Canadian
securities regulatory authorities.
Second Quarter 2012 Highlights:
- Released further positive results from the Mt. Todd gold
project's resource conversion drilling program;
- Based on the favorable drilling program results, announced our
decision to revise the scope of the Mt. Todd gold project
feasibility study to incorporate an increased throughput rate of
the processing facility;
- Announced encouraging metallurgical test results from the Mt.
Todd gold project's heap leach pad, which results support our goal
of recovering gold from the heap leach pad while constructing the
larger Mt. Todd gold project;
- Released further high-grade assay results from the drilling
program at the Guadalupe de los Reyes gold/silver project in
Mexico that are anticipated to be
incorporated into a preliminary economic assessment later this
year;
- Continued to add key personnel to our team, including
John (Jack) F. Engele as Sr. Vice
President and Chief Financial Officer and Seth L. Foreman as Vice President Corporate
Development; and
- Closed a non-brokered private placement with net proceeds of
$14.5 million subsequent to quarter
end.
Fred Earnest, the Company's
President and Chief Executive Officer, commented, "We are
continuing to execute our business goals for the year and I am
looking forward to a number of key milestones through the rest of
2012. I am pleased that, even in these difficult markets, we
were able to raise capital on good terms, and am appreciative of
the long-term shareholder support that made it possible. The
remainder of 2012 will be exciting for the Company as we progress
toward completing an updated mineral resource estimate at the Mt.
Todd gold project and a preliminary economic assessment on the
Guadalupe de los Reyes gold/silver project. We also look to
complete the feasibility study on the Mt. Todd gold project late
this year or early in 2013."
Summary of Second Quarter 2012 Financial Results
We reported a net loss of $30.5
million or $0.42 per share for
the three months ended June 30, 2012.
This loss includes an unrealized $35.0
million mark-to-market loss on our investment in Midas Gold
Corp. ("Midas"), partly offset by $13.2
million of deferred tax benefit. The decline in the value of
our Midas shares is consistent with the continued decline in equity
values within the junior gold sector. During the three month period
ended June 30, 2011, we reported net
income of $47.8 million, or
$0.69 per basic and diluted share.
The 2011 results included an unrealized gain of approximately
$78 million that was recognized upon
the completion of the combination transaction with Midas, and was
partly offset by $23.6 million in
deferred taxes.
Cash and cash equivalents at June 30,
2012 totaled $7.5 million,
compared to $14.8 million at
March 31, 2012. During the quarter,
$6.6 million of this $7.3 million decrease was used for drilling,
permitting and development activities at our Mt. Todd gold project
and the exploration program and preliminary economic assessment at
our Guadalupe de los Reyes gold/silver project; and $1.8 million was used for General and
Administrative expenses. During the quarter, the Company
received $1.1 million from the
exercise of warrants.
On July 30, 2012, we closed a
non-brokered private placement equity offering which provided
$14.5 million net proceeds to the
Company. The Company has no debt. Proceeds from the
private placement will be used to continue our technical
evaluations and engineering studies, exploration and resource
conversion drilling and water treatment at the Mt. Todd gold
project, and for general corporate purposes.
To review the Company's Quarterly Report on Form 10-Q for the
three-month and six-month periods ended June
30, 2012, including the related Management's Discussion and
Analysis, visit any of the following websites: www.sedar.com,
www.sec.gov or www.vistagold.com.
Management Conference Call
A conference call with management to review our financial
results for the fiscal quarter ended June
30, 2012 and to discuss corporate and project activities is
scheduled for Friday, August 10, 2012
at 9:00 a.m. MDT.
Toll-free in North America: 1-866-443-4188
International: 416-849-6196
This call will also be web-cast and can be accessed at the
following web location
http://c81.hostcontrols.com/console/console-login?active=yes
This call will be archived and available at www.vistagold.com
after August 10, 2012. Audio
replay will be available for 21 days by calling toll-free in North
America: 1-866-245-6755, passcode 399275.
If you are unable to access the audio or phone-in on the day of
the conference call, please email questions to Connie Martinez, Manager – Investor Relations
(email: connie@vistagold.com), and we will try to address these
questions prior to or during the conference call.
About Vista Gold Corp.
Vista is focused on the development of the Mt. Todd gold project
in Northern Territory, Australia,
to achieve its goal of becoming a gold producer. Vista is advancing
exploration on its Guadalupe de los Reyes gold/silver project in
Mexico and has granted Invecture
Group, S.A. de C.V. a right to earn a 62.5% interest in the
Concordia gold project in
Mexico. Vista's other holdings
include 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.
For further information, please contact Connie Martinez at (720) 981-1185.
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 ability to recover gold from the heap leach pad at the Mt.
Todd gold project, the potential larger project scope at the Mt.
Todd gold project, timing and completion of an updated mineral
resource estimate at the Mt. Todd gold project, timing and
completion of a feasibility study on the Mt. Todd gold project, and
the timing and completion of a preliminary economic assessment on
the Guadalupe de los Reyes gold/silver project, and other such
matters are forward-looking statements and forward-looking
information. The material factors and assumptions used to
develop the forward-looking statements and forward-looking
information contained in this press release include the following:
our approved business plans, exploration and assay results, mineral
resource and reserve estimates and results of preliminary economic
assessments, pre-feasibility studies and feasibility studies on our
projects, if any. 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, uncertainty of resource estimates,
estimates of results based on such resource estimates; risks
relating to completing updated resource estimates; risks relating
to cost increases for capital and operating costs; risks relating
to delays in the completion of the feasibility study on the Mt.
Todd gold project and completion of the preliminary economic
assessment at the Guadalupe de los Reyes gold/silver project,
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; 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, 2012 and Vista's Amendment 1 to its
Annual Report filed on April 5, 2012
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.
Without limiting the foregoing, this press release uses terms
that comply with reporting standards in Canada and certain estimates are made in
accordance with NI 43-101. NI 43-101 is a rule developed by the
Canadian Securities Administrators that establishes standards for
all public disclosures an issuer makes of scientific and technical
information concerning mineral projects. This press release
uses the term "mineral resource." We advise U.S. investors
that while the term is recognized by Canadian regulations, the term
is not a defined term under the United States Securities and
Exchange Commission's (the "SEC") Industry Guide 7 and is normally
not permitted to be used in reports and registration statements
filed with the SEC. Mineral resources have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of these mineral resources will ever be upgraded to a
higher category. 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. 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 all necessary permits and government approvals 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 these categories will ever be converted into
SEC Industry Guide 7 reserves.
SOURCE Vista Gold Corp.