Business
Vista Gold Corp. Receives $1.5 Million Guadalupe de los Reyes Option Payment
DENVER, Oct. 22, 2019 /CNW/ -- Vista Gold Corp. (NYSE American and TSX: VGZ) ("Vista" or the "Company") today announced receipt of the third $1.5 million option
About this update from Vista Gold Corp
[{"type":"text","content":" DENVER, Oct. 22, 2019 /CNW/ -- Vista Gold Corp. (NYSE American and TSX: VGZ) (\"Vista\" or the \"Company\") today announced receipt of the third $1.5 million option payment from Prime Mining Corp. (\"Prime Mining\") for the Guadalupe de los Reyes gold / silver project in Sinaloa, Mexico (\"Los Reyes\"). Prime Mining assumed the Los Reyes option agreement from Minera Alamos Inc. (\"Minera Alamos\") in June 2019, giving Prime Mining an exclusive option to earn a 100% interest in Los Reyes. Completing the earn-in under the option agreement requires, among other things, Prime Mining making payments totaling $6.0 million comprised of four payments of $1.5 million, the first three of which have now been completed. A final $1.5 million payment is to be made on or before October 23, 2021. Payments made to Vista by Minera Alamos prior to the assignment of the option agreement to Prime Mining are credited toward Prime Mining's earn-in. To date, the Company has received $4.7 million from Minera Alamos and Prime Mining, $4.5 million for Los Reyes option payments and $0.2 million for deferral fees and interest, all of which is non-refundable. Frederick H. Earnest, President and Chief Executive Officer, commented, \"We are pleased with Prime Mining's progress since acquiring the Los Reyes option in June 2019. Prime Mining successfully completed a C$8.7 million financing, assembled an experienced management team, and most recently started a trenching and road cut sampling program at Los Reyes. We wish them success and look forward to seeing exploration results in the near future.\" Once Prime Mining completes the earn-in to Los Reyes, Vista retains a capped net smelter royalty (\"NSR\") on production from open pit mining and a perpetual NSR on production from underground mining. In addition, Vista has the right to relinquish its underground NSR and assume a 49% non-carried interest in an underground mining project if Prime Mining decides to proceed. All dollar amounts in this press release are in U.S. dollars, unless otherwise specified. About Vista Gold Corp. The Company is a well-funded gold project developer. The Company's principal asset is its flagship Mt Todd gold project in Northern Territory, Australia. Mt Todd is the largest undeveloped gold project in Austral...