DENVER, Nov. 9 /PRNewswire-FirstCall/ -- Vista Gold Corp. (TSX
& Amex: VGZ) announced today its financial results for the
three and nine months ended September 30, 2007, as filed on
November 9, 2007, with the US Securities and Exchange Commission
and with the relevant securities commissions in Canada in the
Corporation's Quarterly Report on Form 10-Q. Vista reported a
consolidated net loss for the three-month period ended September
30, 2007 of US$2.2 million or US$0.07 per share compared to a
consolidated net loss of US$1.4 million or US$0.05 per share for
the same period in 2006. The Corporation's consolidated net loss
for the nine-month period ended September 30, 2007 was US$6.2
million or US$0.19 per share compared to a consolidated net loss of
US$3.4 million or US$0.14 per share for the same period in 2006.
For both the three and nine-month periods, the increases in the
consolidated losses of US$0.8 million and US$2.8 million from the
respective prior periods are primarily the result of costs related
to the completion on May 10, 2007, of the Arrangement involving the
Corporation, Allied Nevada Gold Corp. and Carl and Janet Pescio.
The transaction resulted in the acquisition by Allied Nevada of the
Corporation's Nevada properties and the Nevada mineral assets of
Carl and Janet Pescio. These costs amounted to US$0.5 million and
US$2.9 million for the respective periods. Cash used in operations
was US$1.0 million for the three-month period ended September 30,
2007, compared to US$1.1 million for the same period in 2006. The
decrease of US$0.1 million is the result of an increase in accounts
receivable of US$0.2 million, an increase in supplies inventory,
prepaids and other of US$0.8 million and an aggregate increase of
non-cash items of US$0.3 million, partially offset by a decrease in
accounts payable, accrued liabilities and other expenses of US$0.3
million; and an increase in the consolidated net loss of US$0.8
million. Cash used in operations was US$3.9 million for the
nine-month period ended September 30, 2007, compared to US$3.3
million for the same period in 2006. The increase of US$0.6 million
is mostly the result of an increase in the Corporation's net loss
for the same 2006 period of US$2.8 million, which is partially
offset by an aggregate increase of non-cash items of US$2.2
million. Net cash used for investing activities increased to US$1.3
million for the three-month period ended September 30, 2007 from
US$1.0 million for the same period in 2006. The increase of US$0.3
million mostly reflects an increase of US$0.3 million for additions
to mineral properties. The US$1.3 million invested for the
three-month period ended September 30, 2007 was mostly attributable
to: the Corporation's Mt. Todd project in Australia -- US$0.8
million on an intensive exploration program with the objective of
confirming and better defining the resource base and to obtain
samples for metallurgical testing; the Corporation's Paredones
Amarillos project in Mexico and other projects -- US$0.5 million on
pre-feasibility and pre-development work and annual option
payments. As stated in the Corporation's recent press release dated
November 6, 2007, the Board approved the funding for the initial
development of the Paredones Amarillos project; management
anticipates that this will result in extensive investment in that
property in the ensuing months. Net cash used for investing
activities increased to US$29.6 million for the nine-month period
ended September 30, 2007 from US$3.2 million for the same period in
2006. The increase of US$26.3 million mostly reflects the US$24.5
million cash transferred to Allied Nevada in conjunction with the
Plan of Arrangement representing the Corporation's payment of US$25
million, less US$0.5 million in loans repaid to the Corporation by
Allied Nevada, pursuant to the terms of the Arrangement Agreement.
In return for the payment and transfer of assets to Allied Nevada,
the Corporation received 26,933,055 shares of Allied Nevada, of
which 25,403,207 shares were distributed to the Corporation's
shareholders and 1,529,848 shares are being retained by the
Corporation to facilitate the tax payments, if any, payable in
respect of the Arrangement. Although management has been informed
that based on latest tax determinations the Corporation is not
subject to a tax withholding requirement with respect to any gain
deemed realized on the distribution, the Corporation will not know
what its ultimate tax liability, if any, will be until its
corporate income tax returns are completed for the year ending
December 31, 2007. Of the remaining US$5.0 million invested in the
nine-month period ended September 30, 2007, US$4.6 million was
spent on upgrading of mineral properties. The majority of the
US$4.6 million was spent on: Mt. Todd -- US$3.7 million on an
extensive drilling program and other land costs, Paredones
Amarillos and other projects -- US$0.9 million on pre-development
work and pre-feasibility work. Net cash provided by financing
activities increased to US$1.9 million for the three-month period
ended September 30, 2007, from US$1.1 million for the same period
in 2006. Net cash provided by financing activities decreased to
US$3.4 million for the nine-month period ended September 30, 2007,
from US$26.4 million for the same period in 2006. Warrants
exercised during the three-month period ended September 30, 2007
produced cash proceeds of US$1.4 million, as compared to US$0.8
million for the same period in 2006. For the three-month period,
the increase relates to warrant exercises pertaining to the
September 2005 private placement warrants that expired on September
23, 2007. Warrants exercised during the nine-month period ended
September 30, 2007 produced cash proceeds of US$2.9 million, as
compared to US$25.6 million for the same period in 2006. For the
nine-month period, the decrease relates to the acceleration in May
2006 of the expiry of the warrants issued in the Corporation's
February 2003 private placement and the warrants issued in the
Corporation's September 2004 private placement. Stock option
exercises produced cash of US$0.5 million during the three-month
period ended September 30, 2007 as compared to US$0.3 million for
the same period in 2006. Stock option exercises produced cash of
US$0.5 million during the nine-month period ended September 30,
2007 as compared to US$0.8 million for the same period in 2006. At
September 30, 2007, the Corporation's total assets were US$55.7
million compared to US$92.7 million at December 31, 2006,
representing a decrease of US$37.0 million. Part of this decrease
of US$18.6 million was attributed to the mineral properties
transferred to Allied Nevada Gold Corp.; the remaining decrease was
primarily made up of the reduction in working capital. At September
30, 2007, the Corporation had working capital of US$27.9 million
compared to US$49.7 million at December 31, 2006, representing a
decrease of US$21.8 million. This decrease relates to a decrease in
cash balances from year end due to the transfer of US$25 million to
Allied Nevada net of US$0.5 million in loans repaid to the
Corporation by Allied Nevada pursuant to the terms of the
Arrangement Agreement. The principal component of working capital
at both September 30, 2007 and December 31, 2006, is cash and cash
equivalents of US$18.6 million and US$48.7 million, respectively.
Other components include supplies inventory, prepaids and other
(September 30, 2007 -- US$0.5 million; December 31, 2006 -- US$0.3
million), marketable securities (September 30, 2007 -- US$9.0
million; December 31, 2006 -- US$0.8 million) and accounts
receivable (September 30, 2007 -- US$0.4 million; December 31, 2006
-- US$0.6 million). Included in the marketable securities at the
end of September 30, 2007, is the value of US$7.6 million for the
Allied Nevada Gold Corp. shares held by the Corporation. At
September 30, 2007, the Corporation had no outstanding debt to
banks or financial institutions. The selected financial data
including the results of operations for the three-month and
nine-month periods ended September 30, 2007 compared to the same
periods in 2006, and the financial position as at September 30,
2007 compared to December 31, 2006 is summarized in the following
table: Selected Financial Three Months Ended Nine Months Ended Data
September 30, September 30, 2007 2006 2007 2006 U.S. $000's, except
loss per share Results of operations Net loss $(2,200) $(1,361)
$(6,204) $(3,395) Basic and diluted loss per share (0.07) (0.05)
(0.19) (0.14) Net cash used in operations (956) (1,113) (3,922)
(3,259) Net cash used in investing activities (1,301) (960)
(29,588) (3,239) Net cash provided by financing activities 1,902
1,082 3,414 26,372 Financial position September December 30, 31,
2007 2006 Current assets $28,456 $50,430 Total assets 55,746 92,731
Current liabilities 549 732 Total liabilities 574 5,604
Shareholders' equity 55,172 87,127 Working capital 27,907 49,698
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. As gold prices have risen,
Vista has completed various preliminary evaluations that have
demonstrated that some of the projects would be potentially viable
operations at current gold prices. Vista is undertaking technical
programs to bring the most advanced projects to the point where
decisions can be made to put these projects into production, either
by Vista, or through sale or joint venture to other mining
companies. Vista's holdings include the Paredones Amarillos and the
Guadalupe de los Reyes Projects in Mexico, the Mt. Todd Project in
Australia, the Yellow Pine Project in Idaho, the Awak Mas Project
in Indonesia, the Long Valley Project in California, and the
Amayapampa Project in Bolivia. 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
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 results of drilling programs and prospects for exploration and
confirmation and definition of resources at the Mt. Todd project,
potential development of the Paredones Amarillos project including
anticipated investments to be made in the project, and timing for
such investments, the performance of and results of the planned
bankable feasibility study for the Paredones Amarillos Project,
receipt of required environmental and other permits for the
project, timing for starting and completion of drilling and testing
programs, 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 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; and
uncertainty of being able to raise capital on favorable terms or at
all; as well as those factors discussed in Vista's latest Annual
Report on Form 10-K and Quarterly Report on Form 10-Q and other
documents filed with the U.S. Securities and Exchange Commission
and the securities commissions in Canada. 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. 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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