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Vista Gold Corp. Amends Guadalupe de los Reyes Option Agreement to Accelerate Payment Date and Monetize Royalties
DENVER, June 15, 2020 (GLOBE NEWSWIRE) -- Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced that, together with its wholl
About this update from Vista Gold Corp
[{"type":"text","content":" DENVER, June 15, 2020 (GLOBE NEWSWIRE) -- Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced that, together with its wholly-owned subsidiaries Minera Gold Stake Holdings Corp., Granges Inc. and Minera Gold Stake, S.A. de C.V., it has entered into an amendment to the option agreement dated October 23, 2017 (“Amendment Agreement”) for the Guadalupe de los Reyes gold / silver project in Sinaloa, Mexico (“Los Reyes”). The Amendment Agreement accelerates the due date for the final $1.5 million option payment to Vista and provides for an additional $2.1 million payable to Vista in lieu of being granted certain royalties and back-in rights. Pursuant to the Amendment Agreement, Prime Mining Corp. (“Prime Mining”) has agreed to accelerate the due date for the final $1.5 million option payment to Vista from October 23, 2021 to not later than September 30, 2020 (the “Purchase Price Payment Date”). Prime Mining further agrees to pay Vista an additional $2.1 million through two payments of: $1,100,000 no later than six months from the Purchase Price Payment Date, and $1,000,000 no later than 12 months from the Purchase Price Payment Date. If Prime Mining fails to make the two payments, Vista will have the right to reinstate its royalties and back-in right. Frederick H. Earnest, President and Chief Executive Officer, commented, “We are pleased with the acceleration of the due date for the last option payment and this opportunity to monetize the royalties and back-in right at Los Reyes. In addition to cash proceeds of $2.4 million from the recent Awak Mas transaction, Vista now has agreements in place to realize up to $6.1 million over the next 16 months from Awak Mas and Los Reyes. Monetizing our non-core assets has generated working capital without significant dilution to our shareholders and retained greater leverage to the value of Mt Todd as we achieved important permitting milestones and improvements in the efficiency and economic potential of the project. We believe these achievements coupled with the improved gold price position Mt Todd as one of the most compelling development opportunities in the gold sector.” All dollar amounts in this press release are in U.S. dollars. About Vista Gold Corp. The Company is a gold project developer. The Company’s flagship asset is the Mt Todd gold projec...