DENVER, Oct. 24, 2018 /CNW/ -- Vista Gold Corp. (TSX
& NYSE American: VGZ) ("Vista" or the "Company") today
announced that it has agreed to extend the due date for the
second $1.5 million option payment for the Guadalupe de los
Reyes gold / silver project in Sinaloa,
Mexico (the "GdlR Project") by six months to April
23, 2019. As consideration for the deferral, the Company will
receive an additional $150,000 in
cash, $50,000 of which was paid to
Vista on October 24, 2018 and
$100,000 of which Minera Alamos Inc.
("Minera Alamos") has agreed to pay
by January 23, 2019. In addition,
Minera Alamos has agreed to pay
interest at a rate of 1.5% per month on the unpaid balance of the
$1.5 million payment beginning
January 24, 2019.
On October 24, 2017, we announced
the closing of the option agreement, wherein Vista granted
Minera Alamos an exclusive option to
earn a 100% interest in the GdlR Project by, among other things,
making payments totaling $6.0 million comprised of a
payment of $1.5 million made at the execution of the option
agreement, two successive payments of $1.5 million each
to be made at the one-year and two-year anniversaries of the option
agreement, and a final $1.5 million payment to be made before
the four-year anniversary of the option agreement. To date,
the Company has received the initial $1.5
million payment as partial consideration for the GdlR
Project and $50,000 as partial
consideration for the six month deferral of the second payment.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "Minera Alamos has made good progress in
advancing the GdlR Project. We believe the additional consideration
they have offered demonstrates their commitment to the planned
development of the project."
All dollar amounts in this press release are in U.S.
dollars.
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. Mt Todd is the largest undeveloped gold
project in Australia.
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
expectation that we will receive $100,000 no later than January 23, 2019 and interest at a rate of 1.5%
per month on the unpaid balance of the deferred payment beginning
January 24, 2019; and our belief that
the additional consideration offered by Minera Alamos demonstrates their commitment to
the planned development of the project 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 discussions with Minera
Alamos, our reliance that Minera
Alamos will be able to raise funds to finance its business
plans; our approved business plans, exploration and assay results,
results of our test work for process area improvements, mineral
resource and reserve estimates and results of preliminary economic
assessments, prefeasibility 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, 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; uncertainty
as to the results of bulk metallurgical test work; and uncertainty
as to completion of critical milestones for Mt Todd; 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 6, 2018 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.