DENVER, Nov. 4, 2019 /PRNewswire/ -- Vista Gold Corp.
(NYSE American and TSX: VGZ) ("Vista" or the "Company") today
announced that the Company has entered into an amendment to the net
smelter return ("NSR") royalty agreement between Vista and PT
Masmindo DWI Area ("PT Masmindo") dated December 11, 2013 (the "Amending Agreement),
pursuant to which Vista granted PT Masmindo the right to cancel the
NSR royalty held by Vista on the Awak Mas gold project in
Indonesia ("Awak Mas").
Pursuant to the terms of the Amending Agreement:
- Nusantara Resources Limited ("Nusantara"), an indirect
shareholder of PT Masmindo, issued to Vista 666,667 ordinary shares
in the capital of Nusantara and paid $100,000 to Vista;
- PT Masmindo has the right to cancel 50% of the royalty (which
represents a 1.0% NSR royalty on the first 1,250,000 ounces of gold
and 1.25% NSR royalty on the next 1,250,000 ounces of gold produced
from Awak Mas) by giving notice and paying $2.4 million to Vista prior to April 30, 2020; and
- If PT Masmindo executes its right to cancel 50% of the royalty,
as described above, it then has the right to cancel the remaining
50% of the royalty (representing the remaining 1.0% NSR royalty on
the first 1,250,000 ounces of gold and 1.25% NSR royalty on the
next 1,250,000 ounces of gold produced from Awak Mas) by giving
notice and paying $2.5 million to
Vista prior to April 30, 2021.
Frederick H. Earnest, Vista's
President and CEO, commented, "We are pleased with Nusantara's
efforts to advance the Awak Mas project. As reported by
Nusantara in their October 4, 2018
Australian Securities Exchange announcement, the Awak Mas project
presently contemplates production of nearly 1.1 million ounces over
the 11.25-year life of the project. A normal
development cycle suggests that commencement of production is
likely to be at least three years in the future. This Amending
Agreement provides Vista with an excellent opportunity to monetize
its NSR royalty on Awak Mas in the near term and still maintain
longer term exposure to potential upside through the Nusantara
ordinary shares."
Awak Mas is not a material property to Vista. References to Awak
Mas production and life of the project are based on Nusantara's
foreign non-National Instrument 43-101 compliant report.
All dollar amounts in this press release are expressed in U.S.
dollars.
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 the NSR royalty will be monetized in the near term
by PT Masmindo exercising its right to cancel the NSR; the
production forecast and life of the project estimates of the Awak
Mas project; our expectation that commencement of production at
Awak Mas is likely to be at least three years in the future; and
our expectation that there is potential upside over the longer term
through the Nusantara ordinary shares 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 review and reliance on the production forecast
and life of the project estimates of the Awak Mas project; our
approved business plans; our experience with regulators; and our
assumptions that the general economic and market conditions will be
maintained. 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vista-gold-corp-amends-its-net-smelter-return-royalty-agreement-on-the-awak-mas-gold-project-300951152.html
SOURCE Vista Gold Corp.