DENVER, Oct. 30, 2013 /CNW/
- Vista Gold Corp. (TSX & NYSE MKT: VGZ) ("Vista" or
the "Company") today announced its unaudited financial results
and highlights for the third quarter ended September 30, 2013.
Management's quarterly conference call to discuss these results is
scheduled for 2:30pm
MDT on October 31, 2013. 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 and the Canadian securities regulatory
authorities.
Highlights:
- Completed the public consultation process for the Mt. Todd gold
project's Environmental Impact Statement ("EIS") and substantially
completed responses to comments received, continuing the EIS
permitting process that is anticipated to conclude around
year-end;
- Implemented significant cost reduction measures;
- Reached an agreement to extend the due date of Vista's
Cdn$10
million term loan by one year to March 2015 subject
to certain conditions; and
- Closed in October the sale of the Company's Los Cardones gold
project in Baja
California Sur, Mexico, for $13 million in
non-dilutive financing and partially repaid the Company's term
loan.
Frederick H.
Earnest, President and Chief Executive Officer,
commented, "During the third quarter, we continued our strategy of
advancing the Mt. Todd gold project toward a 'development-ready'
status. We submitted the project's initial EIS in late June and are
now finalizing responses to all comments received during the public
consultation process. We continue to anticipate EIS approval
(including certain Federal governmental approvals) around year-end.
Simultaneously, we took steps to improve the Company's near-term
liquidity by implementing previously-announced cost reduction
measures and selling the Los Cardones gold project for $13 million,
$7
million of which was received in October and
$6
million of which is due in January 2014
failing which the ownership of the project would revert to Vista
and Vista would retain the $7 million payment (as further explained
in our October 18,
2013 press release). We continue to evaluate other
opportunities to raise capital through the sale of non-core
assets."
Summary of Third Quarter 2013 Results
We reported a net loss of $3.0 million or $0.04 per share for
the three months ended September 30, 2013. This includes
operating expenses of $3.5 million, an unrealized $4.5 million
mark-to-market gain on our investment in Midas Gold Corp., and a
$3.5
million impairment charge on the Colomac mill
equipment held for sale. During the three months ended September 30, 2012,
we reported net income of $12.3 million or $0.16 per
share.
Project expenditures at the Mt. Todd gold project totaled
$1.9
million during the quarter, down dramatically from
previous quarters as we have now completed several cash intensive
programs, and our cost reduction measures are beginning to take
effect.
During October, the Company closed the sale of the Los Cardones
gold project in Mexico, which resulted in the receipt
of $7
million at closing. The remaining $6 million is due
January
31, 2014. We used $3 million of the $7 million to pay
down our term loan. Assuming the remaining $6 million is paid
to us in January
2014, we would make an additional $3 million payment
against the loan.
Working capital at September 30, 2013 totaled approximately
$12.4
million, including cash of approximately $4.3 million. After
giving effect to the extended maturity date and partial repayment
of the term loan and the sale of the Los Cardones project, current
working capital is approximately $26.1 million,
including cash of approximately $8.3 million, and the balance of the term
loan is approximately $6.7 million.
To review the Company's Quarterly Report on Form 10-Q for the
three months ended September 30, 2013 or Annual Report on
Form 10-K for the year ended December 31, 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 three months ended September 30, 2013
and to discuss corporate and project activities is scheduled for
Thursday, October 31,
2013 at 2:30pm 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/webcast/vistagold/q3-2013/site/
This call will be archived and available at www.vistagold.com
after October
31, 2013. Audio replay will be available for 21 days
by calling toll-free in North America: 1-866-245-6755, passcode
43762.
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.
All dollar amounts in the press release are U.S. dollars unless
otherwise indicated.
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 (OneAsia Resources Ltd.
working to earn an 80% interest), a royalty on the Amayapampa gold
project in Bolivia (being advanced by LionGold
Corp. Ltd.), 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.
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, timing for EIS permitting at the Mt. Todd gold project,
finalizing responses to public comments made on the Company's EIS
for the Mt. Todd gold project, future evaluation of other
opportunities to raise capital through the sale of non-core assets,
receipt of the second payment for the Los Cardones project due in
January
2014, the future sale of the Colomac mill equipment,
repayment of a portion of the Loan Facility in January 2014 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:
timing and the ability to obtain the necessary permits,
implementing cost reduction measures, likely market for the Colomac
mill equipment and the likelihood of receipt of the remaining
portion of the purchase price for the Los Cardones project due in
January
2014 and other such matters. 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, risks that the
purchaser for the Los Cardones project will elect not to make the
$6
million payment due in January 2014,
uncertainty of resource estimates, estimates of results based on
such resource 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.