Vista Gold Corp. Provides Update on Strategic Process
September 12 2022 - 6:45AM
Business Wire
Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced the following update regarding the
Company’s process to seek a partner or other form of transaction to
maximize shareholder value from the Company’s 100% owned Mt Todd
gold project (“Mt Todd” or the “Project”).
The Company has advanced its strategic process for Mt Todd over
the past year and, more formally, since announcing the appointment
of CIBC Capital Markets (“CIBC”) as the Company’s strategic advisor
in March 2022. During this period, a number of interested parties
have engaged in reviews of the Company’s data, carried out
independent testing and analyses, and completed site visits. We
continue to engage in constructive discussions with a number of
groups identified through the strategic process and to pursue
additional interest from others.
Frederick H. Earnest, President and CEO of Vista Gold,
commented, “Our process has generated interest from a broad range
of prospective parties, including high-quality gold producers of
varying scale. These groups conducted extensive due diligence on Mt
Todd. Based on the feedback received, we are pleased that the
technical merits of the Project have stood up to the rigorous
scrutiny of those who have evaluated Mt Todd. Additionally,
engagement with other parties during the process is providing
insights into alternative development and operating strategies
which we continue to evaluate.
“Volatile and uncertain political, economic and equity market
conditions during recent months (including inflationary pressures
that have significantly impacted capital and operating costs across
our industry, supply chain issues, higher interest rates, and lower
gold prices) have resulted in a number of interested parties
adopting a more cautious near term business strategy as they manage
the impacts of these conditions. We believe the completion of an
acceptable transaction may be dependent on improvement and
stability in the economy and capital markets.
“We continue to work with CIBC to monitor market conditions,
advance discussions with those parties who have already made
significant investments in evaluating Mt Todd, and engage with
other parties as identified. We are confident in the technical
merits of Mt Todd and remain focused on creating shareholder value
through an appropriate transaction.
“Vista Gold continues to be in a strong financial position,
having ended June 30, 2022 with a cash position of $11.1 million
and no debt.”
Vista Gold will be participating in the HC Wainwright investor
conference (virtually on September 12th), the Precious Metals
Summit in Beaver Creek (September 13th – 16th), and the Gold Forum
Americas in Colorado Springs (September 19th – 21st).
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is the Mt Todd gold project located in the Tier 1, mining friendly
jurisdiction of Northern Territory, Australia. Situated
approximately 250 km southeast of Darwin, Mt Todd is one of the
largest and most advanced undeveloped gold projects in Australia
and, as presently designed, Mt Todd is expected to be one of the
top five gold producers in Australia. All major environmental and
operating permits have now been approved.
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 our process generated interest from a broad range of
prospective partners, including high-quality gold producers; our
belief that these groups conducted extensive due diligence on Mt
Todd; our belief that the technical merits of the Project have
stood up to the rigorous scrutiny of those who have evaluated Mt
Todd; our belief that volatile and uncertain political, economic
and equity market conditions during recent months (including
inflationary pressures that have significantly impacted capital and
operating costs across our industry, supply chain issues, higher
interest rates and lower gold prices) have resulted in a number of
parties adopting a more cautious near term business strategy as
they manage the impacts of these conditions; our belief that a the
completion of an acceptable transaction may be dependent on
improvement and stability in the economy and capital markets; our
belief that the technical merits of the Project have stood up to
the rigorous scrutiny of those who have evaluated Mt Todd; our
belief that we will evaluate insights from interested parties into
alternative development and operating; our belief that Vista
continues to be in a strong financial position; and our belief that
Mt Todd is one of the largest undeveloped gold project in Australia
and, as presently designed, Mt Todd is expected to be one of the
top five gold producers in Australia, 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 forecasts and expected cash flows; our projected
capital and operating costs; our expectations regarding mining and
metallurgical recoveries; mine life and production rates; that laws
or regulations impacting mine development or mining activities will
remain consistent; our approved business plans, our mineral
resource and reserve estimates and results of preliminary economic
assessments; preliminary feasibility studies and feasibility
studies on our projects, if any; our experience with regulators;
our experience and knowledge of the Australian mining industry and
our expectations of 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; uncertainty as to completion of critical milestones for
Mt Todd; and uncertainty as to the impact of the ongoing global
health crisis caused by the COVID-19 pandemic; 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 in February 2022 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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version on businesswire.com: https://www.businesswire.com/news/home/20220909005495/en/
Pamela Solly, Vice President of Investor Relations (720)
981-1185
Vista Gold (AMEX:VGZ)
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