Business
Vista Gold Corp. Announces Transaction with Invecture Group to Advance the Concordia Gold Project in Mexico
DENVER, Feb. 7, 2012 /CNW/ - Vista Gold Corp. (TSX & NYSE Amex Equities: VGZ) (" Vist...
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\n\nDENVER, Feb. 7, 2012 /CNW/ - Vista Gold Corp. (TSX & NYSE Amex Equities: VGZ) (\"Vista\" or the \"Corporation\") is pleased to announce that it has entered into an Earn-in Right Agreement (the \"Agreement\") with Mexico-based Invecture Group, S.A. de C.V. (\"Invecture\") with respect to Vista's Concordia gold project in Baja California Sur, Mexico. Invecture is the owner of Frontera Copper Corporation, which owns and operates the Piedras Verdes Copper Mine in the Mexican State of Sonora. A conference call with management to discuss this transaction is scheduled for Monday, February 13, 2012 at 11:00 a.m. MST. \nVista holds the Concordia gold project through its wholly-owned, Mexican subsidiary, Desarrollos Zapal, S.A. de C.V. (\"DZ Mexico\"). Under the terms of the Agreement, Invecture has agreed to make a non-refundable payment of US$2.0 million in exchange for the right to earn a 60% interest (subject to adjustment) in DZ Mexico (the \"Earn-in Right\"). The Earn-in Right will expire if not exercised by February 7, 2014, subject to extension in certain circumstances (the \"Earn-in Period\"). The Agreement provides that during the Earn-in Period, Invecture will, at its sole expense, manage and operate the Concordia gold project and will undertake all commercially reasonable efforts to obtain the Change of Forest Land Use Permit (\"CUSF\") and the Authorization of Environmental Impact which are required to develop the project. Invecture has advised that it will secure US$70.0 million in project debt finance to construct the Concordia gold project after it has exercised the Earn-in Right and after a project development decision has been made. Once Invecture has earned its interest in the Concordia gold project, the parties have agreed to evaluate market conditions with regard to the future organization and ownership structure of DZ Mexico.\nCommenting on this transaction with Invecture, Fred Earnest, President and CEO of Vista, said, \"Our team in Mexico has worked hard to advance the Concordia gold project. This investment by Invecture represents a vote of confidence that the Concordia gold project represents an excellent opportunity to develop a new mine that we expect will make an important contribution to employment and to the economy in Baja California. We and Invecture believe that the environmental impacts o...