Business
Vista Gold Corp. Announces Signing of Agreement to Purchase Equipment for Assessment of its Long Valley Gold Project, California
DENVER, Jan. 7 /CNW/ -- Vista Gold Corp. (Amex: VGZ) (TSX: VGZ) is pleased to announce that furt...
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER, Jan. 7 /CNW/ -- Vista Gold Corp. (Amex: VGZ) (TSX: VGZ) is\npleased to announce that further to the Company's January 2, 2008 press\nrelease, the Company has entered into a formal agreement with A.M. King\nIndustries, Inc. ("A.M. King") and Del Norte Company Ltd., a wholly owned\nsubsidiary of A.M. King, to purchase gold processing equipment to be used at\nVista's Paredones Amarillos Project in Baja California Sur, Mexico. As\npreviously announced, the aggregate purchase price is approximately US$16\nmillion, of which approximately US$8 million was paid on signing of the\npurchase agreement. Vista is currently considering various bridge loan or\nconvertible debt alternatives with proceeds to be used for the purchase of the\nequipment and for other expenditures relating to the development of the\nParedones Amarillos Project, thus allowing the Company to use current cash for\nother business purposes. As reported in Vista's press release dated June 21,\n2007, the total capital requirements for the project were estimated in a June\n2007 pre-feasibility study to be US$110 million. This cost may change as Vista\ncompletes the definitive studies that are in progress as a result of various\nscope changes, including an increase in estimated gold production to the range\nof 130,000 to 150,000 ounces per year, the incorporation of used equipment and\nthe impact of inflation.\n\n\nVista is also pleased to announce the results from a preliminary\nassessment for Vista's Long Valley Project, Mono County, California, by Mine\nDevelopment Associates, ("MDA") of Reno, Nevada, in accordance with Canadian\nNational Instrument 43-101 standards under the direction of Mr. Neil Prenn, an\nindependent Qualified Person. This preliminary assessment entitled "Technical\nReport, Preliminary Economic Assessment, Long Valley Project, Mono County,\nCalifornia" is expected to be filed on SEDAR by Vista on or about January 9,\n2008.\n\n\nIn 2003, MDA issued mineral resources estimates for the Long Valley\nProject in a report entitled "Technical Report, Long Valley Project, Mono\nCounty, California, USA" dated February 20, 2003, prepared in compliance with\nNational Instrument 43-101 standards, the results of which were previously\nreported by Vista in a press release dated January 23, 2003. Based on the\nFe...