DENVER, June 27, 2012 /PRNewswire/ -- Vista Gold Corp.
(TSX & NYSE MKT Exchanges: VGZ) ("Vista" or the "Company") is
pleased to announce that, subject to regulatory approval, it
intends to undertake a private placement financing to raise gross
proceeds of up to US$15.0 million
from the sale of up to 5,000,000 units (the "Units") at an offering
price of US$3.00 per Unit (the
"Offering"). Each Unit will be comprised of one common share
in the capital of the Company (a "Common Share") and one-half of
one Common Share purchase warrant (each full warrant, a
"Warrant"). Each Warrant will entitle the holder to purchase
one Common Share at a price of US$3.60 per share and will be exercisable for a
period of 24 months from the closing date of the Offering.
In connection with the Offering, the Company has agreed to pay
finders' fees in respect of subscriptions for up to 3,333,334
Units. Each finder will receive: (i) a cash commission of 5%
of the gross proceeds raised from the Units purchased by investors
introduced to the Company by that finder; and (ii) warrants (the
"Compensation Warrants") equal to 5% of the Units purchased by
investors introduced to the Company by that finder. Each
Compensation Warrant will entitle the holder to purchase one Common
Share at a price of US$3.18 and shall
be exercisable for a period of 24 months from the date of the
closing of the Offering.
The issuance of the Units is subject to the approval of the
Toronto Stock Exchange, the NYSE MKT Exchange and other regulatory
approvals.
The net proceeds from the sale of Units will be used for ongoing
technical evaluations/engineering studies, exploration/resource
conversion drilling and water treatment at the Mt. Todd gold
project in Northern Territory, Australia and for general corporate
purposes.
Fred Earnest, Vista's President
and CEO, commented "As we stated in our last press release, we are
very pleased with the continued results of our resource conversion
drilling program and project feasibility study efforts at our Mt.
Todd gold project and, as a result, have decided to revise the
scope of the Mt. Todd feasibility study to incorporate a larger
processing facility and re-designed mine and production
schedule. We are very grateful that despite difficult market
conditions, a large shareholder and certain of our long-term
shareholders share our enthusiasm for this effort and have agreed
to provide additional financing on terms that are favorable to the
Company to ensure that we can continue to accelerate our efforts to
complete the feasibility study to evaluate the revised scope of the
Mt. Todd gold project and to advance the Mt. Todd gold
project."
The above-described securities have not been registered under
the U.S. Securities Act of 1933, as amended, (the "U.S.
Securities Act") or any state securities laws of any state of
the United States, and may not be
offered or sold in the United
States or to, or for the account or benefit of, a U.S.
person (as defined in Regulation S under the U.S. Securities Act)
or a person in the United States
absent registration under the U.S. Securities Act or an applicable
exemption from such registration requirements and in accordance
with all applicable state securities laws of any state of the
United States. This press release shall not constitute an
offer to sell or solicitation of an offer to buy nor shall there be
any sale of the above described securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Vista Gold
Vista is focused on the development of the Mt. Todd gold project
in Northern Territory, Australia,
to achieve its goal of becoming a gold producer. Vista is advancing
exploration on its Guadalupe de los
Reyes gold/silver project in Mexico and has granted Invecture Group, S.A.
de C.V. a right to earn a 62.5% interest in the Concordia gold project in Mexico. Vista's other holdings include the
Awak Mas gold project in Indonesia
and the Long Valley gold project in California. For more information about our
projects, including technical studies and resource estimates,
please visit our website at www.vistagold.com.
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 Vista expects or
anticipates will or may occur in the future, including such things
as, the completion of the private placement, the potential proceeds
from the private placement, the use of proceeds from the private
placement, incorporation of a larger processing facility and
redesigned mine and production schedule into the feasibility study
on the Mt. Todd gold project and the growth and development of
Vista and other such matters 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, mineral
resource and reserve estimates and results of preliminary economic
assessments, pre-feasibility studies and feasibility studies on our
projects, if any. When used in this press release, the words
"may", "will", "intends", "goal", "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 Vista 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 estimates, estimates
of results based on such resource estimates; risks relating to cost
increases for capital and operating costs; risks relating to delays
in the completion of the drilling program, risks related to the
adequacy of the design of the drilling program, risks related to
the ability to obtain the necessary permits, 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 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; as well as those factors discussed under the headings
"Note Regarding Forward-Looking Statements" and "Risk Factors" in
Vista's latest Annual Report on Form 10-K as filed on March 14, 2012 and Vista's Amendment 1 to its
Annual Report filed on April 5, 2012
and other documents filed with the U.S. Securities and Exchange
Commission and Canadian securities regulatory authorities. Although
Vista has 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, Vista assumes no
obligation to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
For further information, please contact Connie Martinez at (720) 981-1185.
SOURCE Vista Gold Corp.