Vista Gold Corp. Discusses Recent Corporate Developments
February 06 2008 - 10:20PM
PR Newswire (US)
DENVER, Feb. 6 /PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex:
VGZ; TSX) is pleased to announce that recent exercises of
outstanding warrants issued as part of the Corporation's private
placement of February 2006, which expired February 4, 2008, have
resulted in the addition of approximately US$2.9 million in cash
into the Corporation's treasury. This addition brings the
Corporation's cash on hand to approximately US$11.0 million. The
Corporation also holds securities valued at approximately US$10.9
million as of December 31, 2007. With the share issuances from
these warrant exercises, there will be approximately 34.4 million
common shares of the Corporation issued and outstanding and
approximately 36.3 million common shares on a fully diluted basis.
In reviewing this and other developments, Fred Earnest, President
and COO, commented, "This recent influx of cash will help us
maintain a strong balance sheet while we arrange financing to
advance the Paredones Amarillos Project. We anticipate the
arrangement of interim financing through various bridge loan or
convertible debt alternatives in the near future to fund the recent
purchase of processing equipment for the Paredones Amarillos
Project (see press releases of January 2 and January 8, 2008) and
detailed engineering and other costs associated with the
development of the project. Upon completion of the definitive
feasibility study, we intend to have financing in place that will
allow the start of construction on the project. We expect that the
feasibility study at Paredones Amarillos will be completed early in
the third quarter of 2008 and that construction can begin later in
the year." Mr. Earnest continued, "Vista was successful in
acquiring gold resources during the 2002-2007 period, which
included sustained times of depressed gold prices and completion of
the transaction involving the transfer of Vista's Nevada assets to
Allied Nevada Gold Corp., growing Vista's gold resource base from
1.8 million ounces to 18.1 million ounces at an average acquisition
cost of US$0.62 per ounce of gold acquired. With gold prices
continuing to rise, Vista is working to become a mid-size producer,
with the goal of producing 350,000 to 400,000 ounces of gold per
year by 2011. This level of production is predicated upon the
successful achievement of our plans to construct and commission the
Paredones Amarillos mine by late 2009 and the Mt. Todd mine by late
2010 or early 2011, subject to completion of definitive feasibility
studies and obtaining acceptable financing arrangements." About
Vista Gold Corp. In June 2007, Vista completed a preliminary
feasibility study update on the Paredones Amarillos Project in
Mexico that indicated positive results which show it could produce
1.4 million gold ounces over a ten-year life at gold prices lower
than those now prevailing. The Corporation hopes to confirm these
results with a definitive feasibility study in 2008. Based on the
favorable results from the preliminary feasibility study and the
higher gold prices, Vista has undertaken programs to advance
development of the Paredones Amarillos Project, including the
purchase of used mill equipment, with the objective of commencing
construction during the second half of 2008. The results of a
preliminary assessment completed in 2007 on the Mt. Todd Project in
Australia were encouraging, showing that 266,000 gold ounces and
4.3 million pounds of copper (with a US$32 per gold ounce copper
credit at copper prices of US$2.00 per pound) could be produced
annually over a ten-year life for a total gold production of nearly
2.7 million ounces and nearly 43 million pounds of copper at an
average operating cost of US$391 per gold ounce net of copper
credits. A development drilling program was completed in 2007 which
will result in a new resource estimate planned to be completed
during the first quarter of 2008. Additional technical studies and
a drilling program are planned for 2008 at Mt. Todd and a
definitive feasibility study is planned for completion during the
first half 2009 with construction then possible as soon as
financing is arranged if the results of the definitive feasibility
study warrant. Vista's other holdings include the Guadalupe de los
Reyes Project in Mexico, where Vista recently completed the
consolidation of the known gold resources in the district under its
ownership. During the remainder of the year, the Corporation will
undertake preliminary exploration and development activities at
Guadalupe de los Reyes. Vista also controls the Yellow Pine Project
in Idaho where the results of a preliminary assessment published in
December 2006 indicated that with an initial capital investment of
approximately US$150 million to process three million tons of ore
per year at operating costs of US$402 per ounce and annual
production of 189,000 ounces of gold, results are encouraging at
gold prices above US$550 per ounce. During 2008, the Corporation
plans to undertake further engineering and environmental studies at
Yellow Pine. Currently, development of the Yellow Pine Project is
not expected to commence until after the successful start of the
Paredones Amarillos Project. The Awak Mas Project in Indonesia and
the Long Valley Project in California have had preliminary
assessments completed recently. Vista is considering various
options including potential joint venture arrangements or sale of
the Amayapampa Project in Bolivia. For further information on the
Paredones Amarillos Project, the Mt. Todd Project and the Yellow
Pine Project, see the following reports filed under Vista Gold
Corp. on SEDAR: "Updated Technical Report, Paredones Amarillos
Project, Baja California Sur, Mexico", June 20, 2007, prepared
under the direction of Mr. Neil Prenn, an independent qualified
person; "Preliminary Economic Assessment, Mt. Todd Gold Project,
Northern Territory Australia", December 29, 2006, prepared under
the direction of Mr. John Rozelle, an independent qualified person;
and "CNI 43-101 Technical Report, Preliminary Assessment of the
Yellow Pine Project, Yellow Pine, Idaho", December 13, 2006,
prepared under the direction of Mr. Richard J. Lambert, an
independent qualified person. The preliminary assessments of the
Mt. Todd Project and the Yellow Pine Project are preliminary in
nature and include inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the preliminary assessments
will be realized. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. 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 preliminary feasibility study results for the Paredones
Amarillos Project; plans for financing the Paredones Amarillos
Project including the nature and timing of financing; plans for a
definitive feasibility study and for subsequent construction and
development activities at the Paredones Amarillos Project; plans
for evaluation of the Mt. Todd Project including preliminary
assessment results, plans, initial estimates of production and mine
life; timing and results for a definitive feasibility study to be
undertaken at the Mt. Todd Project; timing for drilling program and
new resource estimate at the Mt. Todd Project; and anticipated
financing of Mt. Todd Project; planned exploration and development
activities at the Guadalupe de los Reyes Project; preliminary
assessment results for the Yellow Pine Project including initial
estimates of capital and operating costs, and timing for further
studies to be undertaken at the Yellow Pine Project; potential
development of the Yellow Pine 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
including plans, timing and targeted initial production levels; and
other such matters are forward-looking statements and
forward-looking information. When used in this press release, the
words "estimate", "plan", "anticipate", "expect", "intend",
"believe" 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
preliminary assessment results and of feasibility study results and
estimates on which such results are based; risks relating to
scheduling for feasibility studies; risks relating to cost
increases for capital and operating costs including cost of power;
risks relating to delays in commencement and completion of
construction at the Paredones Amarillos Project and the Mt. Todd
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; 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 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 and forward-looking information, 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 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, 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/
Copyright