DENVER, Oct. 7, 2013 /PRNewswire/ -- Vista Gold
Corp. ("Vista" or the "Company") (NYSE MKT and TSX: VGZ) today
announced that it has signed a binding agreement to sell its debt
and equity participation in the Los Cardones gold project in
Baja California Sur, Mexico, to
the Invecture Group ("Invecture") for US$13
million.
The Los Cardones gold project (formerly known as Paredones
Amarillos) is subject to a 2012 earn-in agreement between Invecture
and Vista whereby Invecture could earn a 62.5% interest in the
project by completing certain activities. The agreement
announced today will result in the termination of that earn-in
agreement and the sale of 100% of its debt and equity participation
in the project to Invecture for US$13
million (US$7 million of which
will be paid at closing and US$6
million of which will be paid in January 2014). The
agreement provides that Invecture has the option to elect, in its
discretion, to not make the second payment of US$6 million; in which case, Vista will retain
the US$7 million already paid and the
project. The transaction is subject to a number of
conditions, including receipt of any required regulatory
approvals. The agreement provides that the parties will
execute the definitive documentation with respect to the sale of
the project by October 16, 2013, or
such other date mutually agreed to by the parties.
Proceeds from the completed sale are anticipated to fund Vista's
operations substantially through 2014. Approximately half of
the proceeds will be used to reduce the outstanding balance of
Vista's term loan with Sprott Resource Lending Partnership,
resulting in an expected reduction of Vista's monthly interest
payments by Cdn$40,000.
Frederick H. Earnest, President
and Chief Executive Officer, said, "The sale of the Los Cardones
gold project is consistent with Vista's strategy to raise capital
through the sale of non-core assets. This transaction
preserves our shareholders' exposure and leverage to Vista's two
core assets (the Mt. Todd gold project and Vista's ownership of
Midas Gold Corp.) without diluting our shareholders."
Vista continues to list its Colomac mill equipment for sale
through AM King Industries. A successful sale could provide
sufficient additional capital for Vista to fund itself beyond 2014,
complete the Feasibility Study of the Mt. Todd gold project, and
fully repay its term loan with Sprott.
About Vista Gold Corp.
Vista is a gold company
currently conducting a strategic review of its portfolio of gold
assets, and is focused on advancing its flagship Mt. Todd gold
project in Northern Territory, Australia. Vista's portfolio of assets also
includes a 24.9 % holding in Midas Gold Corp., the Guadalupe de los
Reyes gold/silver project in Mexico (a preliminary economic assessment was
completed in March 2013), the Awak
Mas gold project in Indonesia (One
Asia Resources Ltd. working to earn an 80% interest), the Long
Valley gold project in California
and a royalty on the Amayapampa gold project in Bolivia (being advanced by LionGold). For more
information about our projects, including technical studies and
resource estimates, please visit our website at
www.vistagold.com.
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, completion of the sale of the Los Cardones gold project, the
termination of the earn-in right agreement, the use of proceeds
from such sale (the expected results of such use of proceeds), the
impact of the potential sale of the Colomac mill equipment, 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:
mineral reserve estimates, terms and conditions of our
agreements with contractors and our approved business plans,
management's assessment of potential transactions and strategic
options, and the Company's ability to cut costs and improve
liquidity. When used in this press release, the words
"optimistic," "potential," "indicate," "expect," "intend," "plans,"
"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, ability to settle definitive
agreement to sell the Los Cardones gold project, ability to obtain
any necessary regulatory approvals for such transaction, reliance
on Invecture to complete its obligations under its agreements
with Vista, uncertainty of resource and reserve estimates,
estimates of results based on such resource and reserve estimates;
risks relating to completing metallurgical testing; risks relating
to cost increases for capital and operating costs; risks
related to the timing and the ability to obtain the necessary
permits, 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 Annual Report Form 10-K as filed on
March 14, 2013 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
Company's website at www.vistagold.com.
SOURCE Vista Gold Corp.