DENVER, Jan. 30, 2014 /PRNewswire/ -- Vista Gold Corp.
("Vista" or the "Company") (NYSE MKT and TSX: VGZ) today announced
that it has agreed to extend the due date for the second (and
final) US$6.0 million payment for the
Los Cardones gold project in Baja
California Sur, Mexico by six months to July 31, 2014.
On October 18, 2013, we announced
the closing of sale of the Los Cardones gold project in
Baja California Sur, Mexico, to
the Invecture Group ("Invecture") and RPG Structured Finance
S.a.r.l. (together with Invecture (the "Purchasers")) for
US$13.0 million. Terms of the sale
include US$7.0 million paid at
closing and an optional second payment of US$6.0 million due by January 30, 2014. The Purchasers have the
option to elect, in their discretion, not to make the second
payment of US$6.0 million, in which
case Vista would retain the US$7.0
million already paid and the project. As a result of
permitting delays, Vista and the Purchasers have today agreed to
extend the due date of the US$6.0
million payment to July 31,
2014. As consideration for this extension, the Purchasers
have agreed to increase the second payment from US$6.0 million to US$6.25
million. The Purchasers will continue to retain the option
to elect, in their discretion, not to make this second payment of
US$6.25 million, in which case Vista
will retain the US$7.0 million
already paid and the project.
Vista's President and CEO, Fred
Earnest, stated, "We are satisfied that Invecture remains
committed to advancing the Los Cardones gold project and continues
to expend the human and financial resources needed to obtain the
permits for the project. We believe that our current cash position
will be sufficient to fund the Company into the third quarter of
2014."
About Vista Gold Corp.
Vista's principal assets include its flagship Mt. Todd gold
project in Northern Territory, Australia, and a 24.9% holding in Midas Gold
Corp. In addition to non-core projects in Mexico and California, Vista holds royalty interests in
projects in Bolivia and
Indonesia. 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 and
receipt of the Purchasers' second payment, sufficiency of current
cash for Vista operations into the third quarter of 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:
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, reliance on Invecture to complete
its obligations under its agreements with Vista, risks and
uncertainty regarding the permitting process and timing at the Los
Cardones project, uncertainty of resource and reserve estimates,
estimates of results based on such resource and reserve estimates;
risks relating to cost increases for capital and operating
costs; 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; risks
related to future liquidity and Vista's ability to obtain adequate
financings on acceptable terms, 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.