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[STK] AMEX:VGZ Toronto:VGZ
[IN] MNG MIN PRM
[SU] FNC
TO BUSINESS EDITORS:
Vista Gold Corp. Announces Option Agreement on the Guadalupe de los
Reyes Project
DENVER, April 15, 2014 /PRNewswire/ -- Vista Gold Corp. (TSX & NYSE
MKT: VGZ) ("Vista" or the "Company") today announced that its
subsidiary, Minera Gold Stake, S.A. de C.V. ("MGS"), has entered into
an agreement (the "Option Agreement") to option its interest in the
Guadalupe de los Reyes gold and silver project in Sinaloa, Mexico (the
"GdlR Project") to Cangold Limited ("Cangold").
Pursuant to the terms of the Option Agreement, Vista has granted
Cangold the right to earn a 70% interest in the GdlR Project by:
-- making payments totaling US$5,000,000 in five payments over a
three-year period, with payments totaling US$1,000,000 in the first
year (US$150,000 of which was paid at signing), US$1,500,000 in the
second year and US$2,500,000 in the third year;
-- operating the GdlR project, maintaining the concessions comprising
the GdlR Project in good standing; and
-- fulfilling all of the obligations of MGS, Vista's wholly-owned
subsidiary, to the Ejido La Tasajera (the "Ejido") as set out in the
temporary occupation contract between MGS and the Ejido.
The Option Agreement provides that all cash payments are
non-refundable and optional to Cangold, and in the event Cangold fails
to pay any of the required amounts on the scheduled dates or fails to
comply with its other obligations, the Option Agreement will terminate
and Cangold will have no interest in the GdlR Project. Provided it is
not in breach of the Option Agreement, Cangold may at its discretion
advance the above payment schedule and exercise the initial option for
a 70% interest in the GdlR Project any time during the three-year
period.
Subject to Cangold earning a 70% interest in the GdlR Project, Vista
has granted Cangold an additional option to earn the remaining 30%
interest in the GdlR Project by notifying Vista of a production
decision and by making a cash payment to Vista of US$3,000,000 plus an
additional cash payment based on a formula that includes the growth,
if any, in estimated NI 43-101 Measured and Indicated mineral
resources of the GdlR Project, and the then prevailing spot gold price
("Escalator Payment").
Should Cangold determine not to put the GdlR Project into production,
the Option Agreement provides Vista with the right to buy back
Cangold's 70% interest in the GdlR Project for a cash payment of
US$5,000,000 plus the Escalator Payment described above. If Vista
does not exercise its buyback option, Vista will still retain a right
of first refusal should Cangold elect to sell its 70% interest in the
GdlR Project to a third party.
Cangold is a junior exploration company engaged in the exploration and
development of gold projects in Mexico and Canada. Cangold trades on
the TSX Venture Exchange under the symbol CLD.
About Vista Gold Corp.
Vista's principal assets include its flagship Mt Todd gold project in
Northern Territory, Australia, and an 11.2% holding in Midas Gold
Corp. In addition to non-core projects in Mexico and California, Vista
holds royalty interests in projects in Bolivia and Indonesia. For
more information about our projects, including technical studies and
resource estimates, please visit our website at www.vistagold.com.
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933, as amended, and U.S.
Securities Exchange Act of 1934, as amended, 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 Cangold complying with its obligations under
the Option Agreement (including making contemplated payments,
maintaining the concessions and complying with MGS' obligations to the
Ejido), Cangold's potential decision to put the GdlR project into
production, Vista's ongoing interest in the GdlR Project and other
such matters are forward-looking statements and forward-looking
information. The material factors and assumptions used to develop the
forward-looking statements and forward-looking information contained
in this press release include the following: ability of Cangold to
make payments contemplated in the Option Agreement, approved business
plans, anticipated and estimated costs and budget expenditures to
continue to optimize and advance the Company's core assets, the
perceived extent and duration of the current weakness of gold equity
securities and other such matters. When used in this press release,
the words "optimistic," "potential," "indicate," "expect," "intend,"
"hopes," "believe," "may," "will," "if," "anticipate," "would,"
"could," 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, risks relating to
Cangold's ability to obtain financing (if at all), risks related to
Cangold's determination to put the GdlR Project into production,
uncertainty of resource estimates, estimates of results based on such
resource estimates; risks relating to completing metallurgical
testing; risks relating to cost increases for capital and operating
costs; risks related to the timing and the ability to obtain approval
of the environmental impact statement and the necessary permits for
the Mt Todd gold project, risks of shortages and fluctuating costs of
equipment or supplies; risks relating to fluctuations in the price of
gold; the inherently hazardous nature of mining-related activities;
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; as well as those factors discussed
under the headings "Note Regarding Forward-Looking Statements" and
"Risk Factors" in Vista's Annual Report Form 10-K as filed on March
17, 2014 and other documents filed with the U.S. Securities and
Exchange Commission and Canadian securities regulatory authorities.
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. 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 Company's website at www.vistagold.com.
SOURCE Vista Gold Corp.
-0- 04/15/2014
/Web Site: http://www.vistagold.com
(AMEX:VGZ /
Toronto:VGZ) /
CO: Vista Gold Corp.; Cangold Limited
ST: Colorado
IN: MNG MIN PRM
SU: FNC
PRN
-- LA05332 --
0000 04/15/2014 12:30:00 EDT http://www.prnewswire.com
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