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Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa
Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\nDENVER, July 20 /CNW/ -- Vista Gold Corp.\n(Amex: VGZ; Toronto) announces that it has agreed with Luzon Minerals Ltd.\n(TSX-V: LU), subject to regulatory approval, to further amend the terms of the\noriginal purchase option agreement between the companies concerning Vista's\nAmayapampa gold project in Bolivia, with respect to the payments previously\ndue on June 15, 2005 and June 15, 2006. The agreement had been most recently\namended in January 2005, in connection with Luzon's decision to exercise its\noption to purchase the Amayapampa project from Vista, as previously announced.\nMike Richings, Vista President and CEO, stated, \"We believe the amendments\nwill facilitate Luzon arranging project financing and lead to accelerated\ndevelopment of the project. At the same time, we believe that the amended\nagreement will appropriately compensate Vista and provide us with the\npotential for a long-term royalty revenue stream.\"\nThe amended agreement, dated July 18, 2005, calls for an aggregate\npurchase price comprising: U.S. $2,700,000 (including U.S. $100,000\npreviously paid); either 3,250,000 or 4,250,000 common shares in the capital\nof Luzon (including 250,000 already issued to Vista), and 1,000,000 common\nshare purchase warrants; and a net smelter return royalty to Vista payable as\nfollows:\n\n-- Within five days of receiving approval of the TSX Venture Exchange,\nLuzon will issue to Vista 3,000,000 Luzon common shares and 1,000,000\nwarrants, each warrant entitling the holder to acquire one common share of\nLuzon at an exercise price of CDN $0.20 for a period of three years from the\ndate of issuance, and, on the earlier of December 31, 2005 or the date of the\nclosing of the next debt, equity or other financing completed by Luzon after\nJuly 15, 2005, Luzon will pay to Vista U.S. $100,000 in cash.\n-- Within five days of the date that is the earlier of December 31, 2006\nor the date Luzon completes or obtains financing sufficient to commence\nconstruction at the Amayapampa Project, Luzon will pay to Vista U.S.\n$2,500,000.\n-- In the event that Luzon completes a feasibility study or technical\nreport for the Amayapampa Project that discloses recovered gold of more than\n400,000 ounces, Luzon shall issue to Vista an additional 1,000,000 common\nshares.\n-- If Luzon completes the acquisition of the Amayapampa Pr...