Business
Vista Gold Announces US$15 Million Bought Deal Offering of Units
DENVER, Aug. 2, 2016 /CNW/ -- Vista Gold Corp. (the "Company," "we" or "our") (NYSE MKT: VGZ) (TSX: VGZ) is pleased to announce that it has entered into an unde
About this update from Vista Gold Corp
[{"type":"text","content":"DENVER, Aug. 2, 2016 /CNW/ -- Vista Gold Corp. (the \"Company,\" \"we\" or \"our\") (NYSE MKT: VGZ) (TSX: VGZ) is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters led by Cantor Fitzgerald Canada Corporation and Rodman & Renshaw a unit of H.C. Wainwright & Co., LLC, acting as co-lead underwriters and joint book-running managers and representatives of the underwriters named therein, under which the underwriters have agreed to buy on an underwritten basis 10,750,000 units (the \"Units\"), each Unit consisting of one common share (each a \"Share\") and one half of one common share purchase warrant (each whole warrant a \"Warrant\"), at a price of US$1.40 per Unit for gross proceeds of US$15,050,000 (the \"Offering\"). Each Warrant will be exercisable for 36 months following the closing date and will entitle the holder thereof to purchase one Share upon exercise at an exercise price of US$1.92 per Share, subject to adjustment. The Company has granted the underwriters an option, exercisable in whole or in part, to purchase up to an additional 15% of the Units issued under the Offering to cover over-allotments, if any, and for market stabilization purposes. The Offering is expected to close on or about August 8, 2016, subject to obtaining customary TSX and NYSE MKT approvals. The Company intends to allocate the net proceeds from the Offering to pursue completion of the permitting and to perform selected technical studies that the Company believes will further de-risk the Mt Todd gold project, enhance the economics of Mt Todd and prepare it for development if and when economic conditions warrant. Remaining proceeds will be used for working capital requirements and/or for other general corporate purposes which include ongoing regulatory, legal and accounting expenses, management and administrative expenses, and other corporate initiatives. The Company will file a prospectus supplement with the securities commissions in each province and territory of Canada (other than Quebec) to supplement the Company's Canadian short form base shelf prospectus dated July 11, 2014, and the Company will file a prospectus supplement to the Company's current shelf registration statement on Form S-3, effective August 15, 2014 with the United States Securities and Exchange Commission (th...