Business
Vista Gold Corp. Announces US$15.0 Million Private Placement of Units
DENVER, June 27, 2012 /CNW/ - Vista Gold Corp. (TSX & NYSE MKT Exchanges: VGZ) ...
About this update from Vista Gold Corp
[{"type":"text","content":"\n\n\n\n\n\n\n\nDENVER, June 27, 2012 /CNW/ - Vista Gold Corp. (TSX & NYSE MKT Exchanges: VGZ) (\"Vista\" or the \"Company\") is pleased to announce that, subject to regulatory approval, it intends to undertake a private placement financing to raise gross proceeds of up to US$15.0 million from the sale of up to 5,000,000 units (the \"Units\") at an offering price of US$3.00 per Unit (the \"Offering\"). Each Unit will be comprised of one common share in the capital of the Company (a \"Common Share\") and one-half of one Common Share purchase warrant (each full warrant, a \"Warrant\"). Each Warrant will entitle the holder to purchase one Common Share at a price of US$3.60 per share and will be exercisable for a period of 24 months from the closing date of the Offering.\nIn connection with the Offering, the Company has agreed to pay finders' fees in respect of subscriptions for up to 3,333,334 Units. Each finder will receive: (i) a cash commission of 5% of the gross proceeds raised from the Units purchased by investors introduced to the Company by that finder; and (ii) warrants (the \"Compensation Warrants\") equal to 5% of the Units purchased by investors introduced to the Company by that finder. Each Compensation Warrant will entitle the holder to purchase one Common Share at a price of US$3.18 and shall be exercisable for a period of 24 months from the date of the closing of the Offering. \nThe issuance of the Units is subject to the approval of the Toronto Stock Exchange, the NYSE MKT Exchange and other regulatory approvals.\nThe net proceeds from the sale of Units will be used for ongoing technical evaluations/engineering studies, exploration/resource conversion drilling and water treatment at the Mt. Todd gold project in Northern Territory, Australia and for general corporate purposes.\nFred Earnest, Vista's President and CEO, commented \"As we stated in our last press release, we are very pleased with the continued results of our resource conversion drilling program and project feasibility study efforts at our Mt. Todd gold project and, as a result, have decided to revise the scope of the Mt. Todd feasibility study to incorporate a larger processing facility and re-designed mine and production schedule. We are very grateful that despite difficult market conditions, a large shareholder and certain of our long-term shareho...