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Vista Announces Agreement to Extend Payment Deadline and Enter Into New Bolivia
Vista Announces Agreement to Extend Payment Deadline and Enter Into New Bolivia.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, Dec. 5 /CNW/ -- Vista Gold Corp. (Amex: VGZ; Toronto) (\"Vista\")\nannounced today that, subject to board approval and satisfaction of a number\nof other conditions, it has reached an agreement with Luzon Minerals Ltd.\n(LZN-V) (\"Luzon\") to extend the deadline for Luzon to make the US$2.6 million\ncash payment currently payable to Vista by Luzon on December 6, 2006 to\nJanuary 30, 2007. The agreement to extend the deadline set under the terms of\nthe existing purchase option agreement between Vista and Luzon (as previously\nannounced by Vista) is subject to satisfaction of the conditions described\nbelow. If these conditions are satisfied, the existing purchase option\nagreement will be replaced with a new option agreement substantially on the\nterms described below. If these conditions are not satisfied, the existing\npurchase option agreement will remain in effect and the US$2.6 million payment\nwill be payable on January 30, 2007. Under the existing agreement, Luzon will\nnot acquire title to the project until all payments have been made.\n\n\nThe agreement to extend the payment deadline is subject to the following\nconditions:\n\n\n1. Luzon immediately restructure its board of directors to, among other\nthings, include a director nominated by Vista.\n\n2. By no later than January 30, 2007, Luzon will have:\n\n(a) demonstrated to the satisfaction of Vista that it has management\nin place to undertake technical and on-site management of the\nAmayapampa project;\n\n(b) arranged sufficient funding, or have established and approved a\nfunding plan acceptable to Vista, to fund project and corporate\nactivities sufficient to complete the option period;\n\n(c) executed a new option agreement with Vista to replace the existing\npurchase option agreement that sets out the terms on which Vista\nagreed to sell, and Luzon agreed to buy, the Amayapampa project\nfrom Vista. Under the new option agreement, Vista would grant\nLuzon an 18-month option to purchase a 90% interest in Vista's\ninterests in the Amayapampa project, on substantially the terms\ndescribed below. The consideration for the option will be:\n\n(i) the payments and shares already received as part of the\nexisting agreement;\n\n(ii) a monthly payment of US$20,000 payable during the option\nperiod in cash or shares of Luzon;\n\n(iii) payment to Vista of all...