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Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa, and the Appointment of Vice President, Exploration
Vista Gold Corp. Announces Amendments to Agreement to Sell Amayapampa, and the Appointment of Vice President, Exploration.
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\nDENVER, Nov. 10 /CNW/ -- Vista Gold Corp.\n(Amex: VGZ; TSX) announces that it has agreed with Luzon Minerals Ltd.\n(TSX: LU), subject to regulatory approval, to further amend certain of the\nterms of the purchase option agreement between the companies concerning\nVista's Amayapampa gold project in Bolivia. The agreement was most recently\namended in July 2005, as previously announced.\nThe agreement as amended on July 18, 2005, as previously reported, called\nfor an aggregate purchase price comprising: U.S. $2,700,000 (including U.S.\n$100,000 previously paid); either 3,250,000 or 4,250,000 common shares in the\ncapital of Luzon (including 250,000 already issued to Vista); 1,000,000 common\nshare purchase warrants; and a net smelter return royalty.\n\nThe following amendments have been approved:\n\n The number of Luzon common share warrants to be issued has been\n increased from 1,000,000 to 1,500,000, the exercise price has been\n reduced from CDN $0.20 to CDN $0.15, and the exercise period has been\n reduced from three to two years from the date of issuance. As well,\n the new agreement now provides that if the closing trading price of\n Luzon common shares equals or exceeds CDN $0.25 for 20 consecutive\n trading days, Luzon may request that Vista exercise the warrants, in\n which case the exercise period would conclude 15 business days\n following the request.\n\n Vista has agreed to defer a U.S. $100,000 cash payment from Luzon\n from the earlier of December 31, 2005 or the date of the closing of\n the next debt, equity or other financing completed by Luzon until the\n earlier of December 1, 2006 or the date Luzon completes or obtains\n financing sufficient to commence construction at the Amayapampa\n Project.\n\nOther terms of the agreement remain unchanged.\n\nMike Richings, Vista President and CEO, stated \"We are pleased with the\nprogress that the new management at Luzon is making with the Amayapampa\nProject. We believe these amendments will facilitate their efforts to advance\nLuzon and the development of the project.\"\nOn another matter, the Corporation is pleased to announce the appointment\nof Mr. Robert V. Perry as Vice President, Exploration. He has 25 years of\nexploration experience in North America and internationally, and has been\ninvolved in a number of start-up exploration companies. He was Vice...