Business
Vista Gold Corp. Announces Sale of Amayapampa Project (Bolivia) to Republic Gold Limited, and Other News
DENVER, April 7, 2008 /CNW/ -- Vista Gold Corp. ("Vista") (TSX & Amex: VGZ) is pleased to announc...
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, April 7, 2008 /CNW/ -- Vista Gold Corp. ("Vista") (TSX & Amex:\nVGZ) is pleased to announce the sale of its wholly-owned subsidiary Vista Gold\n(Antigua) Corp. ("Vista Gold Antigua") to Republic Gold Limited ("Republic").\nVista Gold Antigua indirectly held Vista's interest in the Amayapampa gold\nproject in Bolivia. Under the terms of the transaction, Republic has agreed to\npay Vista US$3.0 million in three payments of US$1.0 million. The first of\nthese payments is due and payable upon the start of commercial production (as\ndefined in the purchase and sale agreement) at Amayapampa followed by US$1.0\nmillion payments on each of the first and second anniversaries of the start of\ncommercial production. In addition, Republic has agreed to pay Vista a net\nsmelter return royalty ("NSR") on the gold produced by or on behalf of\nRepublic from the Amayapampa project in varying percentages depending on the\nprice of gold per ounce. When gold is between US$500.01 and US$650.00 per\nounce, a 2% NSR is payable, when the price of gold is between US$650.01 and\nUS$750.00 per ounce, a 3% NSR is payable, and when the price of gold is\nUS$750.01 per ounce and above, the NSR will be 3.5%. The NSR is capped at\n720,000 gold equivalent ounces and no NSR payments are due to Vista if the\ngold price is below US$500 per ounce. Vista will retain a first right of\nrefusal in the event Republic decides to sell the property and will also\nretain a right to re-acquire the property if Republic or Vista Gold Antigua\nhave not moved to close a financing under a project financing facility within\nfive years.\n\n\nFred Earnest, Vista's President and COO, stated, "We view the sale of\nAmayapampa as a strategic divestiture that will allow us to concentrate our\nfinancial and personnel resources on developing our larger Paredones Amarillos\n(Mexico) and Mt. Todd (Australia) projects. Republic has been involved in the\nAmayapampa project in recent years, and we believe that it has the experience\nand technical team to expeditiously place the project into production to take\nadvantage of current gold price levels."\n\n\nAdditionally, Howard Harlan, Vice President Business Development, has\nannounced that he intends to retire after 40 years in the mining industry and\nhas tendered his resigna...