DENVER, July 28, 2014 /CNW/ -- Vista Gold Corp. ("Vista"
or the "Company," "we" or "our") (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 January 30, 2015, and will receive a US$0.5 million cash payment.
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.à
r.l. (together with Invecture, the "Purchasers") for US$13.0 million. Terms of the sale included
US$7.0 million paid at closing and an
optional second payment of US$6.0
million due by January 30,
2014, (the "Subsequent Payment"). The Purchasers have
the option to elect, in their discretion, not to make the
Subsequent Payment, in which case Vista would retain all amounts
already paid and the project.
In January 2014, Vista and the
Purchasers agreed to extend the due date of the Subsequent Payment
to July 31, 2014. As
consideration for this extension, the Purchasers agreed to pay
Vista an additional US$0.25 million
on July 31, 2014, (the "First
Extension Consideration"). As Invecture diligently continues
to work through the permitting process, Vista and the Purchasers
have agreed to an additional six month extension of the due date of
the Subsequent Payment to January 30,
2015, (the "Second Extension"). The Purchasers will pay
Vista US$0.25 million as
consideration for the Second Extension (the "Second Extension
Consideration"). The Company expects to receive US$0.5 million (comprising the First Extension
Consideration and the Second Extension Consideration) by
July 31, 2014.
Vista's President and CEO, Fred
Earnest, stated, "We are satisfied that Invecture continues
to employ its resources in advancing the Los Cardones gold project
and is working diligently to obtain the permits for the project.
The US$0.5 million payment we
will receive from the Purchasers demonstrates their continued
commitment to the project."
About Vista Gold Corp.
Vista's principal asset is its flagship Mt Todd gold project in
Northern Territory, Australia. We
also own 11.2% of the outstanding shares of Midas Gold Corp.,
non-core projects in Mexico and
California, and royalty interests
in gold 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, receipt of the US$0.5 million
payment and the US$6.0 million
payment in connection with the sale of the Los Cardones gold
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:
the Purchasers complying with the terms of their agreements
with us, 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 17, 2014 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.