Vista Gold Corp. Discusses Recent Corporate Developments

About this update from Vista Gold Corp

[{"type":"text","content":"\n\n\n\nDENVER, Feb. 6 /CNW/ -- Vista Gold Corp. (Amex: VGZ; TSX) is pleased to\nannounce that recent exercises of outstanding warrants issued as part of the\nCorporation's private placement of February 2006, which expired February 4,\n2008, have resulted in the addition of approximately US$2.9 million in cash\ninto the Corporation's treasury. This addition brings the Corporation's cash\non hand to approximately US$11.0 million. The Corporation also holds\nsecurities valued at approximately US$10.9 million as of December 31, 2007. \nWith the share issuances from these warrant exercises, there will be\napproximately 34.4 million common shares of the Corporation issued and\noutstanding and approximately 36.3 million common shares on a fully diluted\nbasis.\n\n\nIn reviewing this and other developments, Fred Earnest, President and\nCOO, commented, "This recent influx of cash will help us maintain a strong\nbalance sheet while we arrange financing to advance the Paredones Amarillos\nProject. We anticipate the arrangement of interim financing through various\nbridge loan or convertible debt alternatives in the near future to fund the\nrecent purchase of processing equipment for the Paredones Amarillos Project\n(see press releases of January 2 and January 8, 2008) and detailed engineering\nand other costs associated with the development of the project. Upon\ncompletion of the definitive feasibility study, we intend to have financing in\nplace that will allow the start of construction on the project. We expect that\nthe feasibility study at Paredones Amarillos will be completed early in the\nthird quarter of 2008 and that construction can begin later in the year."\n\n\nMr. Earnest continued, "Vista was successful in acquiring gold resources\nduring the 2002-2007 period, which included sustained times of depressed gold\nprices and completion of the transaction involving the transfer of Vista's\nNevada assets to Allied Nevada Gold Corp., growing Vista's gold resource base\nfrom 1.8 million ounces to 18.1 million ounces at an average acquisition cost\nof US$0.62 per ounce of gold acquired. With gold prices continuing to rise,\nVista is working to become a mid-size producer, with the goal of producing\n350,000 to 400,000 ounces of gold per year by 2011. This level of production\nis predicated upon the successful achievement ...

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