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Vista Gold Announces Number of Shares to be Distributed as Part of Arrangement
Vista Gold Announces Number of Shares to be Distributed as Part of Arrangement.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, May 8 /CNW/ -- Vista Gold Corp. (Amex: VGZ; Toronto) ("Vista")\nannounced today that it will receive a total of 26,933,055 shares of common\nstock of Allied Nevada Gold Corp. ("Allied Nevada Shares") as part of the\npreviously announced arrangement involving Vista, Allied Nevada Gold Corp.,\nand Carl and Janet Pescio (the "Arrangement"). Of these 26,933,055 Allied\nNevada Shares, 25,403,207 shares will be available for distribution to\nshareholders of Vista, subject to applicable withholding taxes (as described\nin the management information and proxy circular of Vista dated October 11,\n2006) and after Vista retains approximately 1.5 million shares to facilitate\nthe payment of any taxes payable by Vista in respect of the Arrangement. \nAccordingly, assuming there is no change in the number of the issued and\noutstanding shares of Vista between the date hereof and the effective time of\nthe Arrangement, for each existing share of Vista that a shareholder owns\nimmediately prior to the effective time of the Arrangement, they will receive,\nsubject to applicable withholding taxes (a) one new share of Vista, (b) 0.794\nof a Allied Nevada Share and (c) any payment they are entitled to receive in\nlieu of a fractional share of Allied Nevada.\n\n\nAs previously announced, the distribution to shareholders who are not\nresidents in Canada may be subject to withholding taxes, which cannot be\ndetermined until after the closing of the Arrangement. Consequently, Vista\nwill withhold 10% of all Allied Nevada Shares distributable to shareholders\nwho are not residents in Canada, to meet any shareholder withholding tax\nrequirements. Withholding taxes, if any, will be paid from the proceeds of\nselling Allied Nevada Shares withheld by Vista from distribution to Vista\nshareholders. Once sufficient net proceeds have been realized to meet any\nwithholding tax requirements, the remaining Allied Nevada Shares, if any, will\nbe distributed to the shareholders who are not residents in Canada who had\ntheir Allied Nevada Shares withheld.\n\n\nVista hereby notifies all shareholders that any deemed dividend that\narises as part of the Arrangement is designated to be an eligible dividend for\nCanadian tax purposes.\n\n\nAbout Vista Gold Corp.\n\n\nVista Gold Corp., based in Littleton, Colorado, evaluates a...