Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa, and the Appointment of Vice President, Exploration
November 10 2005 - 5:47PM
PR Newswire (US)
DENVER, Nov. 10 /PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex:
VGZ; TSX) announces that it has agreed with Luzon Minerals Ltd.
(TSX: LU), subject to regulatory approval, to further amend certain
of the terms of the purchase option agreement between the companies
concerning Vista's Amayapampa gold project in Bolivia. The
agreement was most recently amended in July 2005, as previously
announced. The agreement as amended on July 18, 2005, as previously
reported, called for an aggregate purchase price comprising: U.S.
$2,700,000 (including U.S. $100,000 previously paid); either
3,250,000 or 4,250,000 common shares in the capital of Luzon
(including 250,000 already issued to Vista); 1,000,000 common share
purchase warrants; and a net smelter return royalty. The following
amendments have been approved: * The number of Luzon common share
warrants to be issued has been increased from 1,000,000 to
1,500,000, the exercise price has been reduced from CDN $0.20 to
CDN $0.15, and the exercise period has been reduced from three to
two years from the date of issuance. As well, the new agreement now
provides that if the closing trading price of Luzon common shares
equals or exceeds CDN $0.25 for 20 consecutive trading days, Luzon
may request that Vista exercise the warrants, in which case the
exercise period would conclude 15 business days following the
request. * Vista has agreed to defer a U.S. $100,000 cash payment
from Luzon from the earlier of December 31, 2005 or the date of the
closing of the next debt, equity or other financing completed by
Luzon until the earlier of December 1, 2006 or the date Luzon
completes or obtains financing sufficient to commence construction
at the Amayapampa Project. Other terms of the agreement remain
unchanged. Mike Richings, Vista President and CEO, stated "We are
pleased with the progress that the new management at Luzon is
making with the Amayapampa Project. We believe these amendments
will facilitate their efforts to advance Luzon and the development
of the project." On another matter, the Corporation is pleased to
announce the appointment of Mr. Robert V. Perry as Vice President,
Exploration. He has 25 years of exploration experience in North
America and internationally, and has been involved in a number of
start-up exploration companies. He was Vice President and COO of
Gold Discovery Company of Golden, Colorado, which successfully made
several gold discoveries in Romania and was involved in exploring
Ecuador and Uzbekistan. Earlier in his career, Bob discovered the
Beartrack gold deposit in Idaho, which became a major gold mining
project, and is credited with additional discoveries. He holds B.A.
and M.S. degrees in geology from the University of Colorado. Vista
Gold Corp., based in Littleton, Colorado, evaluates and acquires
gold projects with defined gold resources. Additional exploration
and technical studies are undertaken to maximize the value of the
projects for eventual development. The Corporation's holdings
include the Maverick Springs, Mountain View, Hasbrouck, Three
Hills, Wildcat projects and Hycroft mine, all in Nevada, the Long
Valley project in California, the Yellow Pine project in Idaho, the
Paredones Amarillos and Guadalupe de Los Reyes projects in Mexico,
and the Awak Mas project in Indonesia. The statements that are not
historical facts are forward-looking statements involving known and
unknown risks and uncertainties that could cause actual results to
vary materially from targeted results. Such risks and uncertainties
include those described from time to time in the Corporation's
periodic reports, including its latest annual report on Form 10-K
filed with the U.S. Securities and Exchange Commission. The
Corporation assumes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. For further information, please visit
the Vista Gold Corp. website at http://www.vistagold.com/.
DATASOURCE: Vista Gold Corp. CONTACT: Greg Marlier of Vista Gold
Corp., +1-720-981-1185 Web site: http://www.vistagold.com/
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