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Vista Gold Announces Favorable Changes to the Northern Territory, Australia Mineral Royalties Regime
DENVER / Jun 11, 2024 / Business Wire / Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced that the Northern Territory, Au
About this update from Vista Gold Corp
[{"type":"text","content":"DENVER / Jun 11, 2024 / Business Wire / Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced that the Northern Territory, Australia (the “NT”) has passed legislation to enact the Mineral Royalties Act 2024 (“Royalties Act”) effective July 1, 2024. The Royalties Act will replace the prior net profits royalty regime with an ad valorem royalty regime for new mines. The new effective royalty rate is expected to positively impact project economics for the Company’s Mt Todd gold project in the NT. All dollar amounts in this press release are in U.S. dollars. The Royalties Act is aimed at encouraging present and future exploration and development of mining projects by simplifying the NT’s royalty system and making it more competitive with other Tier 1 jurisdictions. Pursuant to the Royalties Act, the royalty rate applicable to gold doré from Mt Todd will be 3.5% of the value of gold produced. Frederick H. Earnest, President and CEO of Vista Gold, stated, “We are pleased with the successful efforts of the NT Government to encourage new mining development in the Territory. The 3.5% royalty to be applied to the production from Mt Todd represents a meaningful opportunity for improved project economics and earlier shareholder returns compared to our 2024 updated feasibility study, which included NT royalties equivalent to nearly a 7% ad valorem rate. Under the previous net profits royalty regime, our base case economic analysis at an $1,800 gold price estimated the payment of $765 million in NT royalties over the life of the mine. The new royalty rate will represent nearly a 50% reduction in payable royalties and underscores the NT’s commitment to growing a viable mining sector through new development.” The Chief Minister and Treasurer of the Northern Territory, Eva Lawler, recently commented, “Mining is a key driver of the Territory economy. An ad valorem scheme is simple, competitive, and delivers investment certainty, allowing new mines to commence operations in the Territory, creating significant economic benefit, higher employment, and more royalties for Territorians. Right now we are in a position to set our course for a mining industry that is not only profitable to the Northern Territory, but also supports the energy transition to renewables.”1 John Rozelle, a “qualified person” as defined by Cana...