DENVER, Oct. 22, 2019 /CNW/ -- Vista Gold Corp. (NYSE
American and TSX: VGZ) ("Vista" or the "Company") today
announced receipt of the third $1.5 million option payment
from Prime Mining Corp. ("Prime Mining") for the Guadalupe de
los Reyes gold / silver project in Sinaloa, Mexico ("Los
Reyes").
Prime Mining assumed the Los Reyes option agreement from Minera
Alamos Inc. ("Minera Alamos") in
June 2019, giving Prime
Mining an exclusive option to earn a 100% interest in Los
Reyes. Completing the earn-in under the option agreement requires,
among other things, Prime Mining making payments totaling $6.0
million comprised of four payments of $1.5 million, the
first three of which have now been completed. A final $1.5
million payment is to be made on or before October 23, 2021.
Payments made to Vista by Minera
Alamos prior to the assignment of the option agreement to
Prime Mining are credited toward Prime Mining's earn-in. To date,
the Company has received $4.7 million from Minera
Alamos and Prime Mining, $4.5
million for Los Reyes option payments and $0.2 million for deferral fees and interest, all
of which is non-refundable.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "We are pleased with Prime
Mining's progress since acquiring the Los Reyes option in
June 2019. Prime Mining successfully
completed a C$8.7 million financing,
assembled an experienced management team, and most recently started
a trenching and road cut sampling program at Los Reyes. We wish
them success and look forward to seeing exploration results in the
near future."
Once Prime Mining completes the earn-in to Los Reyes, Vista
retains a capped net smelter royalty ("NSR") on production from
open pit mining and a perpetual NSR on production from underground
mining. In addition, Vista has the right to relinquish its
underground NSR and assume a 49% non-carried interest in an
underground mining project if Prime Mining decides to proceed.
All dollar amounts in this press release are in U.S. dollars,
unless otherwise specified.
About Vista Gold Corp.
The Company is a well-funded gold project developer. The
Company's principal asset is its flagship Mt Todd gold project in
Northern Territory, Australia. Mt Todd is the largest
undeveloped gold project in Australia.
For further information, please contact Pamela Solly, Vice President of Investor
Relations, at (720) 981-1185.
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 we expect or anticipate
will or may occur in the future, including such things as our
expectation that Prime Mining will make the final option payment to
Vista not later than October 23, 2021
and complete the earn-in to Los Reyes; and that Prime Mining will
produce exploration results on Los Reyes in the near future 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: our
discussions with Minera Alamos, our
reliance that Minera Alamos will be
able to raise funds to finance its business plans; our approved
business plans, exploration and assay results, results of our test
work for process area improvements, mineral resource and reserve
estimates and results of preliminary economic assessments,
prefeasibility studies and feasibility studies on our projects, if
any, our experience with regulators, and positive changes to
current economic conditions and the price of gold. When used in
this press release, the words "optimistic," "potential,"
"indicate," "expect," "intend," "hopes," "believe," "may," "will,"
"if," "anticipate," 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 the Company to be materially
different from any future results, performance or achievements
expressed or implied by such statements. Such factors include,
among others, uncertainty of resource and reserve estimates,
uncertainty as to the Company's future operating costs and ability
to raise capital; risks relating to cost increases for capital and
operating costs; 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 our 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
as to the results of bulk metallurgical test work; and uncertainty
as to completion of critical milestones for Mt Todd; as well as
those factors discussed under the headings "Note Regarding
Forward-Looking Statements" and "Risk Factors" in the Company's
latest Annual Report on Form 10-K as filed in February 2019 and other documents filed with the
U.S. Securities and Exchange Commission and Canadian securities
regulatory authorities. Although we have 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, we assume no obligation to publicly update any
forward-looking statements or forward-looking information; whether
as a result of new information, future events or otherwise.
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SOURCE Vista Gold Corp.