DENVER, April 24, 2019 /CNW/ -- Vista Gold Corp.
(TSX & NYSE American: VGZ) ("Vista" or the "Company") today
announced that it has received the second $1.5 million option
payment from Minera Alamos for the
Guadalupe de los Reyes gold / silver project in Sinaloa, Mexico (the "GdlR Project").
In October 2017, Vista granted
Minera Alamos an exclusive option to
earn a 100% interest in the GdlR Project by, among other things,
making payments totaling $6.0 million comprised of a
payment of $1.5 million made at the execution of the option
agreement, two successive payments of $1.5 million each
to be made at the one-year and two-year anniversaries of the option
agreement, and a final $1.5 million payment to be made on or
before the four-year anniversary of the option agreement.
In October 2018, the Company and
Minera Alamos agreed to defer the
payment date for the second option payment by six months to
April 23, 2019. As consideration for
the deferral, Minera Alamos paid
Vista an additional $150,000 in cash,
plus $65,700 of interest.
To date, the Company has received $3.2
million from Minera Alamos
for the GdlR Project, all of which is non-refundable.
Frederick H. Earnest, President
and Chief Executive Officer, commented, "We are pleased to have
received the second payment under the option agreement, which will
strengthen Vista's cash position. We believe this payment is
indicative of Minera Alamos'
commitment to continue to advance the GdlR Project."
All dollar amounts in this press release are in U.S.
dollars.
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our
principal asset is our 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 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 our cash position will be strengthened as a result
of the option payment and our belief that the additional
consideration offered by Minera
Alamos demonstrates their commitment to advance the GdlR
Project 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.
