Vista Gold Corp. Announces Board of Directors Approves Payment on Guadalupe de los Reyes Property, Mexico
August 04 2004 - 6:17PM
PR Newswire (US)
Vista Gold Corp. Announces Board of Directors Approves Payment on
Guadalupe de los Reyes Property, Mexico DENVER, Aug. 4
/PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex: VGZ; TSX)
announces that its Board of Directors has approved a US$500,000
payment in common shares of the Corporation towards the purchase of
a 100% interest in the Guadalupe de los Reyes gold project in
Sinaloa State, Mexico, and a data package associated with the
project and general area. Under the August 2003 purchase agreement,
the aggregate purchase price is US$1.4 million and a 2% NSR-type
royalty. Vista has paid US$400,000 in prior payments. The agreement
provides that the current US$500,000 payment may be made in cash or
common shares at the option of the Corporation. The number of
shares issuable is to be determined by dividing US $500,000 by the
average closing price of Vista's common shares on the American
Stock Exchange over the last ten trading days immediately prior to
July 31, 2004. Accordingly, the current issuance will amount to
138,428 common shares. An additional US$500,000 in cash will be
paid by way of US$100,000 payments on each of the second through
sixth anniversaries of the signing of the formal agreement, with
the outstanding balance becoming due upon commencement of
commercial production. Vista retains the right to terminate the
agreement at any time. A resource study completed in 2003, the
results of which were announced previously, reported the presence
of 277,600 ounces of indicated(1) gold resource and 247,850 ounces
of inferred(2) gold resource at a cutoff grade of 0.016 opt gold.
The project includes significant silver values. The Corporation is
compiling and reviewing data and is considering updating a
pre-feasibility study that was done by Pincock, Allen & Holt of
Denver, Colorado in 1998. "We believe the whole district needs to
be consolidated, and we hold the heart of it," President and CEO
Mike Richings commented. "Guadalupe de los Reyes has previously
been studied for low-grade, open-pit development. Our
interpretation of the deposit is that there is significant
potential for high-grade material down-dip of the old workings
which hasn't been adequately drill tested." 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, Hycroft
and Wildcat projects 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
Amayapampa project in Bolivia. 1 Cautionary Note to U.S. Investors
concerning estimates of Indicated Resources: This news release uses
the term "indicated resources". We advise U.S. investors that while
this term is recognized and required by Canadian regulations, the
U.S. Securities and Exchange Commission does not recognize it. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into
reserves. 2 Cautionary Note to U.S. Investors concerning estimates
of Inferred Resources: This news release uses the term "inferred
resources". We advise U.S. investors that while this term is
recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. "Inferred
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility or other economic
study. U.S. investors are cautioned not to assume that any part or
all of an inferred resource exists or is economically or legally
mineable. 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 Howard Harlan at (720)
981-1185, or visit the Vista Gold Corp. website at
http://www.vistagold.com/. DATASOURCE: Vista Gold Corp. CONTACT:
Howard Harlan of Vista Gold Corp., +1-720-981-1185 Web site:
http://www.vistagold.com/
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