Vista Gold Corp. (the "Company," "we" or
"our") (NYSE MKT and TSX: VGZ) today announced its financial results
and highlights for the second quarter ended June 30, 2012. Management's
quarterly conference call to discuss these results is scheduled for 9:00 a.m.
MDT on August 10, 2012. The Company's full financial results,
Management's Discussion and Analysis together with other important disclosures
can be found in the Company's Quarterly Report on Form 10-Q, filed with the
U.S. Securities and Exchange Commission (the "SEC") and the Canadian
securities regulatory authorities.
Second Quarter 2012 Highlights:
- Released further positive results from the Mt.
Todd gold project's resource conversion drilling program;
- Based on the favorable drilling program results,
announced our decision to revise the scope of the Mt. Todd gold project
feasibility study to incorporate an increased throughput rate of the
processing facility;
- Announced encouraging metallurgical test results
from the Mt. Todd gold project's heap leach pad, which results support our
goal of recovering gold from the heap leach pad while constructing the
larger Mt. Todd gold project;
- Released further high-grade assay results from
the drilling program at the Guadalupe de los Reyes gold/silver project in
Mexico that are anticipated to be incorporated into a preliminary economic
assessment later this year;
- Continued to add key personnel to our team,
including John (Jack) F. Engele as Sr. Vice
President and Chief Financial Officer and Seth L. Foreman as Vice
President Corporate Development; and
- Closed a non-brokered private placement with net
proceeds of $14.5 million subsequent to quarter end.
Fred Earnest, the Company's President and Chief Executive Officer,
commented, "We are continuing to execute our business goals for the year
and I am looking forward to a number of key milestones through the rest of
2012. I am pleased that, even in these difficult markets, we were able to
raise capital on good terms, and am appreciative of the long-term shareholder
support that made it possible. The remainder of 2012 will be exciting for
the Company as we progress toward completing an updated mineral resource
estimate at the Mt. Todd gold project and a preliminary economic assessment on
the Guadalupe de los Reyes gold/silver project. We also look to complete
the feasibility study on the Mt. Todd gold project late this year or early in
2013."
Summary of Second Quarter 2012 Financial Results
We reported a net loss of $30.5 million or $0.42 per share for the three
months ended June 30, 2012. This loss includes an unrealized $35.0 million
mark-to-market loss on our investment in Midas Gold Corp. ("Midas"),
partly offset by $13.2 million of deferred tax benefit. The decline in the value
of our Midas shares is consistent with the continued decline in equity values
within the junior gold sector. During the three month period ended June 30,
2011, we reported net income of $47.8 million, or $0.69 per basic and diluted
share. The 2011 results included an unrealized gain of approximately $78
million that was recognized upon the completion of the combination transaction
with Midas, and was partly offset by $23.6 million in deferred taxes.
Cash and cash equivalents at June 30, 2012 totaled $7.5 million,
compared to $14.8 million at March 31, 2012. During the quarter, $6.6 million
of this $7.3 million decrease was used for drilling, permitting and development
activities at our Mt. Todd gold project and the exploration program and
preliminary economic assessment at our Guadalupe de los Reyes gold/silver
project; and $1.8 million was used for General and Administrative
expenses. During the quarter, the Company received $1.1 million from the
exercise of warrants.
On July 30, 2012, we closed a non-brokered private placement equity
offering which provided $14.5 million net proceeds to the Company. The
Company has no debt. Proceeds from the private placement will be used to
continue our technical evaluations and engineering studies, exploration and
resource conversion drilling and water treatment at the Mt. Todd gold project,
and for general corporate purposes.
To review the Company's Quarterly Report on Form 10-Q for the
three-month and six-month periods ended June 30, 2012, including the related
Management's Discussion and Analysis, visit any of the following
websites: www.sedar.com, www.sec.gov or www.vistagold.com.
Management Conference Call
A conference call with management to review our financial results for
the fiscal quarter ended June 30, 2012 and to discuss corporate and project
activities is scheduled for Friday, August 10, 2012 at 9:00 a.m. MDT.
Toll-free in North America: 1-866-443-4188
International: 416-849-6196
This call will also be web-cast and can be accessed at the following web
location
http://c81.hostcontrols.com/console/console-login?active=yes
This call will be archived and available at www.vistagold.com after
August 10, 2012. Audio replay will be available for 21 days by calling
toll-free in North America: 1-866-245-6755, passcode 399275.
If you are unable to access the audio or phone-in on the day of the
conference call, please email questions to Connie Martinez, Manager � Investor
Relations (email: connie@vistagold.com), and
we will try to address these questions prior to or during the conference call.
About Vista Gold Corp.
Vista is focused on the development of the Mt. Todd gold project in
Northern Territory, Australia, to achieve its goal of becoming a gold producer.
Vista is advancing exploration on its Guadalupe de los Reyes gold/silver
project in Mexico and has granted Invecture Group,
S.A. de C.V. a right to earn a 62.5% interest in the Concordia gold project in
Mexico. Vista's other holdings include the Awak Mas
gold project in Indonesia and the Long Valley gold project in California. For
more information about our projects, including technical studies and resource
estimates, please visit our website at www.vistagold.com.