Vista Gold Corp. Announces Closing of U.S. $6.5 Million Private Placement
September 29 2004 - 6:33PM
PR Newswire (US)
Vista Gold Corp. Announces Closing of U.S. $6.5 Million Private
Placement DENVER, Sept. 29 /PRNewswire-FirstCall/ -- Vista Gold
Corp. (Amex: VGZ; TSX) is pleased to announce the closing of the
private placement previously announced on July 28, 2004. The
Corporation raised gross proceeds of U.S. $6,489,304.80 from the
sale of 1,966,456 units priced at U.S. $3.30 per unit. Each unit
consists of one common share and one warrant. Each warrant will
entitle the holder to acquire one common share at an exercise price
of U.S. $4.75 for a period of two years from the date of issue,
provided a registration statement is declared effective by the U.S.
Securities and Exchange Commission within six months of the closing
date; otherwise, the exercise price of each warrant will be reduced
automatically to U.S. $4.25. Starting six months after the share
registration is declared effective, if the closing price of Vista's
common shares on the American Stock Exchange is U.S. $5.50 or more
for a period of 20 consecutive trading days, then for 15 business
days Vista will have the option to request that the warrants be
exercised. If the warrants are not exercised within 15 business
days following this request, they will be cancelled. A cash
finder's fee of 5% of the gross proceeds raised was paid to an
advisor to the corporation in conjunction with the private
placement. "The proceeds of this private placement will allow us to
continue with our strategy of acquiring additional gold resources,
as suitable opportunities arise; improving our gold projects
through additional drilling, re-engineering and feasibility
studies; and provide for on-going administration costs," said Mike
Richings, President and Chief Executive Officer. The securities
described above have not been registered under the U.S. Securities
Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements. 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. 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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