Vista Gold Corp. Announces Agreement to Purchase Gold Processing Equipment and Appointment of General Manager for the Paredones
January 02 2008 - 9:39PM
PR Newswire (US)
DENVER, Jan. 2 /PRNewswire-FirstCall/ -- Vista Gold Corp. (TSX
& Amex: VGZ) is pleased to announce that it has reached an
agreement in principal with A.M. King Industries, Inc. ("A.M.
King") and Del Norte Company Ltd., a wholly owned subsidiary of
A.M. King, to purchase gold processing equipment to be used at
Vista's Paredones Amarillos gold project in Baja California Sur,
Mexico. The equipment includes a 10,000 tonne per day
semi-autogenous (SAG) grinding mill, two ball mills, gyratory
crusher and a shorthead cone crusher, along with other related
components, spare parts, and other process plant equipment. The
purchase price of US$16,010,000 will be payable in three
installments -- the first payment of 50% of the purchase price
(US$8,005,000) payable on signing of the purchase agreement and the
second and third payments (25%, or US$4,002,500 each) payable based
on an equipment delivery schedule with respective parameters
targeted to occur in February and March, 2008. The purchase price
includes the cost of relocating the equipment to Edmonton, Alberta,
Canada. From this point, Vista will arrange for reconditioning and
transportation of the equipment to the Paredones Amarillos mine
site. The equipment is presently located in northern Canada. Vista
intends to purchase the equipment through its wholly owned
subsidiary, Minera Paredones Amarillos, S.A. de C.V. The Company is
also pleased to announce the appointment of Carlos Calderon, Jr.,
as Vice President, Project Development, effective January 7. He
will also have the title and duties of General Manager and Legal
Representative for Minera Paredones Amarillos, S.A. de C.V. and
will focus primarily on the development of the Paredones Amarillos
Project. Mr. Calderon holds a M.Sc. degree in Mining Engineering
from South Dakota School of Mines, and over the past 36 years has
managed exploration, construction and operational projects in Latin
America and the U.S., including serving as General Manager for the
Paredones Amarillos Project for the prior operator, Echo Bay Mines
until the project was put on hold when gold prices dropped in 1997.
Fred Earnest, President and COO, commented, "This purchase is an
important milestone in the Company's goal to become a gold producer
at the earliest possible time. The decision to purchase this major
portion of the project's processing equipment re-affirms our
earlier decision to place Paredones Amarillos into production and
to do it as soon as possible. In addition to anticipated
significant capital cost savings, we believe that the purchase and
planned comprehensive reconditioning of this used equipment will
save 12-18 months over the time required for the delivery of
similar new equipment, thus helping us meet our development
schedule. The development of the Paredones Amarillos Project is the
first step in our plans to become a mid-tier gold producer. We are
also very pleased to welcome Carlos Calderon to the Company. With
his proven track record of building and operating mining projects,
especially in Latin America, and his prior experience at Paredones
Amarillos, we believe he will be a very important asset for the
Company as well as the Paredones Amarillos Project, and will be
able to get up to speed very quickly." 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 has recently completed a preliminary feasibility
study on the Paredones Amarillos Project in Mexico that indicated
positive results at gold prices lower than those now prevailing.
Vista plans to confirm these results with a definitive feasibility
study in 2008. Vista is undertaking programs to advance the
Paredones Amarillos Project, including the purchase of long
delivery equipment items, so that construction can begin during the
second half 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, Long Valley Project in California, and 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 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 potential development of the Paredones
Amarillos project including anticipated timing of commencement of
construction of the project, availability of funding for
development of the Paredones Amarillos project and estimates of
cash costs and required capital investment for the project,
estimates of production life, rates of production and internal
rates of return if production is commenced at the Paredones
Amarillos 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
completion of the agreement contemplated in this press release,
delays and occurrence of additional costs in connection with the
condition of the equipment being purchased and costs and time
associated with reconditioning the equipment, ability to meet the
anticipated schedule for delivery of the equipment to Edmonton,
Alberta, Canada, the feasibility study underway at the Paredones
Amarillos project; uncertainty of feasibility study results and
estimates on which such results are based; risks relating to delays
in commencement and completion of construction at the Paredones
Amarillos project; risks of shortages of equipment or supplies;
risks of inability to achieve anticipated production volume or
manage cost increases; 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
Quarterly Report on Form 10-Q 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. 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, +1-720-981-1185, for Vista Gold Corp. Web site:
http://www.vistagold.com/
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