Business
Vista Gold Announces Determination of Fair Market Value of Shares of Allied Nevada Gold Corp.
Vista Gold Announces Determination of Fair Market Value of Shares of Allied Nevada Gold Corp..
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, May 24 /CNW/ -- Vista Gold Corp. (Amex: VGZ; Toronto) ("Vista")\nannounced today that its board of directors determined that the fair market\nvalue of each share of Allied Nevada Gold Corp. ("Allied Nevada") on May 10,\n2007, the effective date of the previously announced plan of arrangement\ninvolving Vista, Allied Nevada and Carl and Janet Pescio (the "Arrangement"),\nwas U.S.$4.6265. Although, this determination will not be binding on the U.S.\nInternal Revenue Service or the Canada Revenue Agency, it was necessary to,\namong other things, determine whether a deemed dividend arose for Canadian tax\npurposes in respect of the Arrangement. In light of this determination, Vista\nhas concluded that no deemed dividend arose for Canadian tax purposes in\nrespect of the Arrangement. Consequently, the shares of Allied Nevada withheld\nfrom certain shareholders of Vista at the closing of the Arrangement to\nsatisfy potential withholding tax obligations if a deemed dividend for\nCanadian tax purposes arose, will be distributed to shareholders from whom\nthey were withheld as soon as practicable.\n\n\nAs previously indicated in the management information and proxy circular\nof Vista dated October 11, 2006 (the "Circular"), Vista agreed to provide this\ninformation to its shareholders after the effective date of the Arrangement.\nFor more information on this and other tax implications of the Arrangement,\nsecurityholders should review the Circular and consult with their own tax\nadvisors.\n\n\nAbout Vista Gold Corp.\n\n\nSince 2001, Vista has acquired a number of discovered gold projects with\nthe expectation that higher gold prices would significantly increase their\nvalue. As gold prices have risen, Vista has completed various preliminary\nevaluations that have confirmed that some of the projects would be potentially\nviable operations at today's gold prices. Currently, Vista is undertaking\ntechnical programs to bring the most advanced projects to the point where\ndecisions can be made to put these projects into production, either by Vista,\nor through sale or joint venture to other mining companies. Vista's holdings\ninclude the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico,\nMt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project\nin Ind...