DENVER, Aug. 2, 2016 /CNW/ -- Vista Gold Corp. (the
"Company," "we" or "our") (NYSE MKT: VGZ) (TSX: VGZ) is pleased to
announce that it has entered into an underwriting agreement with a
syndicate of underwriters led by Cantor Fitzgerald Canada
Corporation and Rodman & Renshaw a unit of H.C. Wainwright & Co., LLC, acting as
co-lead underwriters and joint book-running managers and
representatives of the underwriters named therein, under which the
underwriters have agreed to buy on an underwritten basis 10,750,000
units (the "Units"), each Unit consisting of one common
share (each a "Share") and one half of one common share
purchase warrant (each whole warrant a "Warrant"), at a
price of US$1.40 per Unit for gross
proceeds of US$15,050,000 (the
"Offering"). Each Warrant will be exercisable for 36 months
following the closing date and will entitle the holder thereof to
purchase one Share upon exercise at an exercise price of
US$1.92 per Share, subject to
adjustment.
The Company has granted the underwriters an option, exercisable
in whole or in part, to purchase up to an additional 15% of the
Units issued under the Offering to cover over-allotments, if any,
and for market stabilization purposes.
The Offering is expected to close on or about August 8, 2016, subject to obtaining customary
TSX and NYSE MKT approvals.
The Company intends to allocate the net proceeds from the
Offering to pursue completion of the permitting and to perform
selected technical studies that the Company believes will further
de-risk the Mt Todd gold project, enhance the economics of Mt Todd
and prepare it for development if and when economic conditions
warrant. Remaining proceeds will be used for working capital
requirements and/or for other general corporate purposes which
include ongoing regulatory, legal and accounting expenses,
management and administrative expenses, and other corporate
initiatives.
The Company will file a prospectus supplement with the
securities commissions in each province and territory of
Canada (other than Quebec) to supplement the Company's Canadian
short form base shelf prospectus dated July
11, 2014, and the Company will file a prospectus supplement
to the Company's current shelf registration statement on Form S-3,
effective August 15, 2014 with the
United States Securities and Exchange Commission (the
"SEC"), in connection with the Offering for which this
communication relates (collectively, the "Offering
Documents"). The Offering Documents will contain
important detailed information about the securities being
offered.
Before you invest, you should read the Offering Documents and
other documents that the Company has filed with the SEC for more
complete information about the Company and the Offering. Copies of
the Underwriting Agreement and the Offering Documents will be
available for free by visiting the Company's profiles on SEDAR at
www.sedar.com or EDGAR at www.sec.gov/edgar.shtml, as
applicable.
Alternatively, a copy of the Offering Documents can be obtained
by contacting the Company, attention: Connie Martinez at (720) 981-1185, Suite 5, 7961
Shaffer Parkway, Littleton,
Colorado 80127 or by contacting any underwriter or any
dealer participating in the offering at Cantor Fitzgerald Canada
Corporation, attention: Equity Capital Markets, 181 University
Avenue, Suite 1500, Toronto, ON,
M5H 3M7, email: ecmcanada@cantor.com, or Rodman & Renshaw a
unit of H.C. Wainwright & Co.,
LLC, 430 Park Avenue, New York, NY
10022, email: placements@hcwco.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of,
Units, Warrants or Shares in any state or province in which such
offer, solicitation or sale would be unlawful, prior to
registration or qualification under the securities laws of any such
state, province, or other jurisdiction.
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our
principal asset is our flagship Mt Todd gold project in Northern
Territory, Australia where we
continue to work to identify opportunities to improve project
economics with the goal of advancing the project toward
development. We also hold approximately 4.4% of the outstanding
common shares of Midas Gold Corp., non-core projects in
Mexico and the United States and royalty interests in
Indonesia. For more information
about our projects, including technical studies and resource
estimates, please visit our website at www.vistagold.com.
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,
statements with respect to the expected closing date of the
Offering and the use of proceeds from the Offering are
forward-looking statements and forward-looking information; 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: our understanding and belief of the current market
conditions, 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, our experience with regulators,
and positive changes to current economic conditions and the price
of gold. 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, our ability to satisfy the
conditions to closing of the Offering and to use the proceeds from
the Offering as expected, 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; 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 February 26, 2016 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.
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SOURCE Vista Gold Corp.