Vista Gold Corp. Announces Luzon Exercises Option to Purchase Amayapampa Project, Bolivia
January 19 2005 - 7:38PM
PR Newswire (US)
Vista Gold Corp. Announces Luzon Exercises Option to Purchase
Amayapampa Project, Bolivia DENVER, Jan. 19 /PRNewswire-FirstCall/
-- Vista Gold Corp. (AMEX: VGZ; TSX: VGZ), is pleased to announce
that Luzon Minerals Ltd. has informed Vista that it wishes to
exercise its option to purchase Vista's Amayapampa gold project in
Bolivia. Mike Richings, Vista President and CEO, stated, "We are
very pleased that Luzon has decided to proceed, although the
bankable project feasibility study is still in the final stages of
completion. We also wish to congratulate Luzon on achieving a major
milestone in the development of this excellent project by reaching
a socio-economic agreement with the local communities affected by
the proposed development." In addition, the companies have agreed,
subject to regulatory approval, to further amend the terms of the
original purchase option agreement with respect to the payments
previously due on January 15, 2005 and January 1, 2006. The amended
agreement calls for Vista to receive from Luzon, within 5 business
days of receiving TSX Venture Exchange approval, a payment
consisting of US$100,000 and 2,000,000 Luzon common shares. This
will be followed, on the earlier of June 15, 2005 or the date of
the next financing completed by Luzon after January 19, 2005, by a
payment of US$850,000 in cash or, at Luzon's option, US$425,000 in
cash and US$425,000 in units consisting of Luzon common shares and
warrants to purchase common shares. The final payment will be made
at the earlier of the start of construction or June 15, 2006. This
payment remains unchanged from the original agreement, as reported
in December 2003, in that Luzon will pay Vista US$4,000,000 in
cash, or at Vista's option, a combination of Luzon common shares
and cash based on Luzon's share price. If Luzon completes the
purchase, and when production commences, Vista will also receive a
3% net smelter type royalty on gold production at gold prices of
US$450 per ounce or below and 4% at gold prices above US$450 per
ounce. Other terms of the agreement remain unchanged. 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 Sulawesi 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 the 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 contact Greg Marlier at (720) 981-1185, or 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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