DENVER, Jan. 30, 2014 /CNW/
- 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.