Vista Gold Corp. Announces Sale of Amayapampa Project (Bolivia) to Republic Gold Limited, and Other News
April 07 2008 - 9:00AM
PR Newswire (US)
DENVER, April 7, 2008 /PRNewswire-FirstCall/ -- Vista Gold Corp.
("Vista") (TSX & Amex: VGZ) is pleased to announce the sale of
its wholly-owned subsidiary Vista Gold (Antigua) Corp. ("Vista Gold
Antigua") to Republic Gold Limited ("Republic"). Vista Gold Antigua
indirectly held Vista's interest in the Amayapampa gold project in
Bolivia. Under the terms of the transaction, Republic has agreed to
pay Vista US$3.0 million in three payments of US$1.0 million. The
first of these payments is due and payable upon the start of
commercial production (as defined in the purchase and sale
agreement) at Amayapampa followed by US$1.0 million payments on
each of the first and second anniversaries of the start of
commercial production. In addition, Republic has agreed to pay
Vista a net smelter return royalty ("NSR") on the gold produced by
or on behalf of Republic from the Amayapampa project in varying
percentages depending on the price of gold per ounce. When gold is
between US$500.01 and US$650.00 per ounce, a 2% NSR is payable,
when the price of gold is between US$650.01 and US$750.00 per
ounce, a 3% NSR is payable, and when the price of gold is US$750.01
per ounce and above, the NSR will be 3.5%. The NSR is capped at
720,000 gold equivalent ounces and no NSR payments are due to Vista
if the gold price is below US$500 per ounce. Vista will retain a
first right of refusal in the event Republic decides to sell the
property and will also retain a right to re-acquire the property if
Republic or Vista Gold Antigua have not moved to close a financing
under a project financing facility within five years. Fred Earnest,
Vista's President and COO, stated, "We view the sale of Amayapampa
as a strategic divestiture that will allow us to concentrate our
financial and personnel resources on developing our larger
Paredones Amarillos (Mexico) and Mt. Todd (Australia) projects.
Republic has been involved in the Amayapampa project in recent
years, and we believe that it has the experience and technical team
to expeditiously place the project into production to take
advantage of current gold price levels." Additionally, Howard
Harlan, Vice President Business Development, has announced that he
intends to retire after 40 years in the mining industry and has
tendered his resignation effective April 4, 2008. Mike Richings,
Executive Chairman and CEO said "on behalf of the Board and all his
friends at Vista, I would like to wish him a long and happy
retirement and to thank him for his hard work, loyalty and his many
valuable contributions to Vista. Howard has had some of the more
difficult and challenging tasks we have faced -- he has always
tackled them enthusiastically and with determination. We look
forward to continuing our relationship in the future as he has
indicated that he will be available to assist us on a part-time
basis as a consultant." About Vista Gold Corp. Since 2001, Vista
has acquired a number of gold projects with the expectation that
higher gold prices would significantly increase their value. Vista
is undertaking programs to advance the Paredones Amarillos Project,
including a definitive feasibility study and the purchase of long
delivery equipment items, so that construction can begin during the
last quarter of 2008. The results of a preliminary assessment
completed in 2007 on the Mt. Todd Project in Australia were
encouraging and additional technical studies are underway with a
definitive feasibility study planned for completion by mid-2009.
Vista's other holdings include the Guadalupe de los Reyes Project
in Mexico, Yellow Pine Project in Idaho, Awak Mas Project in
Indonesia, and the Long Valley Project in California. This press
release contains forward-looking statements within the meaning of
the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of
1934 and forward-looking information within the meaning of
applicable Canadian securities laws. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Vista expects or
anticipates will or may occur in the future, including such things
as the potential for gold production at the Amayapampa Project and
timing for commencement of production; and timing and receipt of
future payments in connection with the sale of the Amayapampa
Project; the performance and results of feasibility studies
including the ongoing bankable feasibility study for the Paredones
Amarillos Project; and anticipated timing of commencement of
construction and commencement of production at the Paredones
Amarillos Project; results of drilling programs and plans for a
feasibility study at the Mt. Todd Project; Vista's future business
strategy, competitive strengths, goals, operations, plans,
potential project development, future share price and valuation,
future gold prices, Vista's potential status as a producer, and
other such matters are forward-looking statements. When used in
this press release, the words "estimate", "plan", "anticipate",
"expect", "intend", "believe" and similar expressions are intended
to identify forward-looking statements. These statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Vista to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks relating to
delays and incurrence of additional costs in connection with the
feasibility study underway at our Paredones Amarillos Project;
uncertainty of feasibility study results and preliminary
assessments and of estimates on which such results are based; risks
relating to delays in commencement and completion of construction
at the Paredones Amarillos Project; risks of significant cost
increases; risks of shortages of equipment or supplies; risks that
Vista's acquisition, exploration and property advancement efforts
will not be successful; risks relating to fluctuations in the price
of gold; the inherently hazardous nature of mining-related
activities; uncertainties concerning reserve and resource
estimates; potential effects on Vista's 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
of being able to raise capital on favorable terms or at all; and
external risks relating to the economy and credit markets in
general; as well as those factors discussed in Vista's latest
Annual Report on Form 10-K and other documents filed with the U.S.
Securities and Exchange Commission and Canadian securities
commissions. Although Vista has attempted to identify important
factors that could cause actual results to differ materially from
those described in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Except as
required by law, Vista 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 contact
Connie Martinez at (720) 981-1185, or visit the Vista Gold Corp.
website at http://www.vistagold.com/ DATASOURCE: Vista Gold Corp.
CONTACT: Connie Martinez of Vista Gold Corp., +1-720-981-1185 Web
site: http://www.vistagold.com/
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