DENVER, Jan. 30, 2015 /CNW/ -- Vista Gold Corp. (the
"Company," "we" or "our") (NYSE MKT and TSX: VGZ) today announced
it has agreed to amend the payment terms (the "Amendment") of its
sale of the Los Cardones gold project in Baja California Sur, Mexico to Invecture
Group, S.A. de C.V. ("Invecture") and RPG Structured Finance
S.a.r.l. (together, the "Purchasers"). Under the Amendment, the
Company will receive a payment of US$3.0
million cash from the Purchasers as full and final payment
for 100% of the Company's debt and equity participation in the Los
Cardones gold project.
In October 2013, we agreed to sell
100% of our debt and equity participation in the Los Cardones gold
project to the Purchasers for total consideration of
US$13 million, US$7 million of which was paid at closing and
US$6 million of which is due by January
30, 2015 (extended from January 30,
2014, and subsequently from July 31,
2014). The Purchasers had the option to elect, in their
discretion, not to make the second payment of US$6 million, in which case, we would retain all
amounts already received and the Los Cardones gold project would be
returned to us.
On October 28, 2014,
Invecture announced that the Los Cardones gold project had
been suspended, stating that conditions for its development were
not favorable at that time. Since making this announcement, there
have been no apparent significant favorable changes to incentivize
Invecture to lift the suspension.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "It is clear that Invecture
has invested a significant amount of time, energy, financial
resources and political capital to advance the Los Cardones gold
project. However, present conditions make it difficult to predict
when development at the project might occur. Our key focus is
the continued advancement of our Mt Todd gold project. Our
goal is to position the Mt Todd gold project ready for development
in an improved gold price environment. Like other mining
companies, we face risks with regards to financing our activities
and ensuring our ongoing viability. The US$3.0 million payment we expect to receive
mitigates those risks, and, together with a US$0.5 million Guadalupe
de los Reyes option payment expected on March 2, 2015 (postponed from January 15, 2015) and the cash on hand at the end
of 2014, we believe the Company will be funded into 2016,
consistent with our strategy of financing the Company through
non-dilutive means."
About Vista Gold Corp.
Vista's principal asset is its flagship Mt Todd gold project in
Northern Territory, Australia. We also hold 11.2% of the
outstanding common shares of Midas, non-core projects in
Mexico and the United States and 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.
For further information, please contact Connie Martinez at (720) 981-1185.
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 we expect or
anticipate will or may occur in the future, including such things
as, our belief that Invecture will succeed in developing the Los
Cardones gold project, the receipt and expected timing of the
receipt of the US$3 million
payment and US$0.5 million
payments, that these payments together with our cash on hand at the
end of 2014 will provide sufficient funding for the Company into
2016; and our goal to position the Mt Todd gold project to be ready
for development in an improved gold price environment. The material
factors and assumptions used to develop the forward-looking
statements and forward-looking information contained in this press
release include the following: permitting conditions in
Mexico, compliance by our partners
of their contractual obligations, track record and ability of our
partners, our approved business plans, exploration and assay
results, mineral resource and reserve estimates and results of
preliminary economic assessments, pre-feasibility studies and
feasibility studies on our projects, if any. 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 the Company to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Such
factors include, among others, uncertainty of resource and reserve
estimates, uncertainty as to the Company's future operating costs
and ability to raise capital; 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 our 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 our partners and the geopolitical environment in
which they carry on business; as well as those factors discussed
under the headings "Note Regarding Forward-Looking Statements" and
"Risk Factors" in the Company's latest Annual Report on 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 we
have 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, we assume
no obligation to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vista-gold-corp-amends-the-payment-terms-for-the-los-cardones-project-and-will-receive-a-us30-million-cash-payment-300028311.html
SOURCE Vista Gold Corp.