Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced that the Company, Jawoyn Association
Aboriginal Corporation (“Jawoyn Association”), and Barnjarn
Aboriginal Corporation have entered into a Deed of Variation (the
“Agreement”) to modify the original 2006 agreement with respect to
the Mt Todd gold project (“Mt Todd” or the “Project”).
The Agreement provides the Jawoyn Association
with a gross proceeds royalty (“GPR”) instead of its previous right
to become a 10% participating joint venture partner in Mt Todd and
provides Vista with greater flexibility in its decisions to develop
and operate Mt Todd. In addition, Vista and the Jawoyn Association
agreed to establish a leaders forum, formalized the Jawoyn
Association’s strong support for Mt Todd and outlined a framework
to optimize training, employment, and contracting opportunities for
the Jawoyn people and businesses.
Frederick Earnest, President and CEO of Vista,
stated, “Our relationship with the Jawoyn people is very important
to Vista and is built on trust, mutual respect and open
communication over the last 14 years. This Agreement provides Vista
with a simplified project structure and the Jawoyn Association with
a royalty in place of the risks and obligations of financing a
participating interest.
“The cooperation and support commitments confirm
our shared vision of promoting cross-cultural awareness, protecting
cultural heritage sites, and providing economic opportunities for
aboriginal people as integral components of the development of Mt
Todd. The clarity this Agreement provides will be especially
meaningful as we advance to discussions with potential development
partners.”
Royalty
Under the terms of the original 2006 agreement,
the Jawoyn Association was granted, among other consideration for
the use of the surface land required to build and operate Mt Todd,
a 1.0% GPR and the right to elect to establish a joint venture with
Vista holding a 90% participating interest and the Jawoyn
Association holding a 10% participating interest in Mt Todd.
Instead of the right to elect to hold a 10% participating interest,
the Agreement provides the Jawoyn Association with an additional
GPR ranging between 0.125% and 2.000%, depending on prevailing gold
prices and foreign exchange rates. The additional GPR would be 1.0%
at present market conditions.
Social and Cultural
Vista and the Jawoyn Association have agreed to
collaboratively promote and advance cross-cultural awareness,
develop a regional employment strategy and establish protocols for
ongoing protection and management of cultural heritage sites.
Additionally, the Company and the Jawoyn Association have
established a framework for creating opportunities for training and
employment and for the development of aboriginal businesses in a
mutually beneficial manner. Vista has long supported, promoted and
fostered employment opportunities for aboriginal people at Mt Todd
and this framework provides a path for continuing success. Both
parties have agreed to work closely together to formalize these
initiatives over the next 12 months.
A leaders forum will be established to provide
ongoing coordination between the Company and the Jawoyn Association
as part of the shared interest in the development of a project that
is expected to provide significant economic benefit for the Jawoyn
people, while respecting their culture and traditions. These
initiatives reiterate the Jawoyn Association’s strong support for
the Project and Vista’s unwavering commitment to social and
corporate responsibility.
Mr. Earnest concluded, “As we have advanced Mt
Todd, we have enjoyed strong support from the Jawoyn Association,
Northern Territory Government and local communities as a result of
our environmental management of the Mt Todd site and commitment to
responsible development of the Project. This Agreement provides
both the Jawoyn Association and Vista with a clear view of the
future as we move forward together.”
About Mt Todd
Mt Todd is designed to be a large-scale,
low-cost gold mine located in the mining friendly jurisdiction of
Northern Territory, Australia. Situated approximately 250 km
southeast of Darwin, Mt Todd is expected to produce approximately
495,000 ounces of gold per year during the first five years of
operation with lowest quartile in-country and global all in
sustaining costs. Mt Todd’s extensive 1,100 km2 of exploration
licenses offer excellent potential to expand gold resources and
reserves and increase the life of the mine. All major environmental
permits have been approved.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s
flagship asset is the Mt Todd gold project in the Tier 1 mining
jurisdiction of Northern Territory, Australia. Mt Todd is the
largest undeveloped gold project in Australia and, if developed as
presently designed, Mt Todd would potentially be the sixth largest
gold producer in Australia on an annual basis.
For further information about Vista or the Mt
Todd Gold Project, please contact Pamela Solly, Vice President of
Investor Relations, at (720) 981-1185 or visit the Company’s
website at www.vistagold.com to access important information,
including the current Technical Report.
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 the
future value of the GPR, continuing strong support for Mt Todd by
the Jawoyn Association and the Northern Territory Government, the
future value of Mt Todd, that Mt Todd is the largest undeveloped
gold project in Australia, our ongoing efforts to seek development
of Mt Todd to potentially be Australia’s 6th largest gold producer
and produce an average of 495,000 ounces of gold during the first
five years of operation with lowest quartile in-country and global
all in sustaining costs, and that Mt Todd’s 1,100 km2 of
exploration licenses offer excellent potential to expand resources
and reserves and increase the life of the mine 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 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 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.
Vista Gold (AMEX:VGZ)
Historical Stock Chart
From Aug 2024 to Sep 2024
Vista Gold (AMEX:VGZ)
Historical Stock Chart
From Sep 2023 to Sep 2024