Vista Gold Corp. Receives $2.4 Million Awak Mas Option Payment
May 05 2020 - 6:11PM
Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced receipt of $2.4 million from PT
Masmindo Dwi Area (“PT Masmindo”) to exercise its option to cancel
50% of the Awak Mas net smelter return (“NSR”) royalty. Management
has also scheduled a conference call on May 8, 2020 at 10:00 am MT
to discuss first quarter 2020 financial results and provide a
general corporate update.
Vista holds an NSR royalty on the Awak Mas
project in Indonesia. During 2019, Vista and PT Masmindo amended
the original royalty agreement to grant PT Masmindo the right to
cancel the NSR royalty held by Vista (see news releases November 4,
2019 and April 30, 2020). Receipt of this payment cancels 50% of
the NSR royalty, and PT Masmindo retains the right to cancel the
remaining 1.0% NSR royalty on the first 1,250,000 ounces of gold
produced and 1.25% NSR royalty on the next 1,250,000 ounces of gold
produced for an additional payment of $2.5 million by April 30,
2021. If PT Masmindo does not make the $2.5 million payment by
April 30, 2021, Vista will retain the remaining royalty interest
and can pursue alternative monetization strategies.
Frederick H. Earnest, President and Chief
Executive Officer, commented, “We are pleased to have received the
first of two option payments from PT Masmindo related to the
cancelation of Vista’s Awak Mas NSR royalty. The $2.4 million
strengthens our balance sheet as we advance our activities to seek
a strategic partner for the construction and development of our Mt
Todd Gold Project. Our efforts to monetize other non-core assets
are ongoing.”
Management Conference Call
A conference call with management to review our
financial results for the first quarter ended March 31, 2020 and to
discuss corporate and project activities is scheduled for May 8,
2020 at 10:00 am MDT.
Participant Toll Free: 888-378-4413Participant
International: 647-792-1280Conference ID: 7842578
This call will be archived and available at
www.vistagold.com after May 8, 2020. Audio replay will be available
for 21 days by calling toll-free in North America:
888-203-1112.
If you are unable to access the audio or
phone-in on the day of the conference call, please email your
questions to ir@vistagold.com.
All dollar amounts in this press release are in
U.S. dollars.
About Vista Gold Corp.
The Company is a gold project developer. The
Company’s principal asset is its flagship Mt Todd gold project in
Northern Territory, Australia. Mt Todd is the largest undeveloped
gold project in Australia and as presently designed, is expected to
be Australia’s 5th largest gold producer on an annual basis.
For further information, please contact Pamela
Solly, Vice President of Investor Relations, 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 the receipt of other
future option payments for the Awak Mas project and our ongoing
efforts to monetize non-core assets 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: there are no changes to laws or regulations
impacting mine development or mining activities, our assumptions
with respect to the current economic conditions, the price of gold
and current market conditions. When used in this press release, the
words “expect,” “intend,” “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, risks relating
to political and economic instability; changes to laws or
regulations impacting mine development or mining activities,
uncertainty regarding current economic conditions, the price of
gold and current market conditions; 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, 2020 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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