Business
Vista Announces New Agreement With Luzon Minerals Ltd. for Option to Purchase Amayapampa Project, Bolivia
Vista Announces New Agreement With Luzon Minerals Ltd. for Option to Purchase Amayapampa Project, Bolivia.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, March 14 /CNW/ -- Vista Gold Corp. (Amex: VGZ; Toronto) ("Vista")\nannounced today that, subject to receipt of all necessary regulatory and other\napprovals, it has entered into a new agreement with Luzon Minerals Ltd. (CDNX:\nLZN-V) ("Luzon") with respect to the Amayapampa Project. Under the terms of\nthe new agreement, Vista has granted to Luzon an exclusive option to purchase\n90% of Vista's interest in the Amayapampa Project for a term of 18 months and\nsubject to the exercise of the option to purchase, a right of first offer over\nVista's remaining 10% interest. This agreement replaces all prior agreements\nbetween Vista and Luzon with respect to Amayapampa Project.\n\n\nIn consideration for the option to purchase and the right of first offer,\nLuzon has agreed to complete a National Instrument 43-101 compliant\nfeasibility study by September 14, 2007, and to arrange for 100% of the\nProject's financing required for the construction, development and\ncommencement of commercial mining operations at the levels recommended in the\nfeasibility study (including all working capital), by no later than September\n14, 2008. Vista may extend the delivery deadline for the feasibility study\nfor a further six months under certain circumstances and for further\nconsideration of US$20,000 per month to be paid by Luzon to Vista.\n\n\nIn addition, Vista will retain a 10% of the net proceeds interest in the\nProject which shall be "carried" to the point of commencement of commercial\nproduction and Luzon will grant Vista a production royalty. The net smelter\nreturn royalty will be 2.5% when gold is less than US$500 per ounce and 3.5%\nwhen gold is at or above US$500 per ounce. If the feasibility study indicates\nproven and probable reserves at the Amayapampa Project are greater than\n685,252 ounces of gold, then the net smelter return royalties on production\nabove 548,202 ounces of gold shall be reduced to 1.0% when gold is less than\nUS$500 per ounce and 2.0% when the gold price is at or above US$500 per ounce.\n\n\nLuzon's ability to exercise the option to purchase is subject to Luzon\nsatisfying a number of conditions set out in the new agreement. Subject to\nLuzon's right to extend the term of the agreement in certain circumstances,\nthe agreement will terminate on September 14, 2008, unle...