Posted in | News | Gold | Earnings

Vista Gold Closes Private Placement for Mt. Todd Gold Project

Vista Gold Corp. (TSX & NYSE Amex: VGZ) announced today its financial results for the quarter and nine months ended September 30, 2010, as filed on November 9, 2010, with the United States Securities and Exchange Commission and the relevant securities regulatory authorities in Canada in the Corporation's Quarterly Report on Form 10-Q, and announces a management quarterly conference call scheduled for Friday, November 12, 2010, at 9:00 A.M. MST.

Recent Highlights

  • Closes private placement financing (shareholder and regulatory approval pending) of U.S.$33 million to be used to re-purchase notes of U.S.$23 million, for the advancement of our Mt. Todd gold project and for general corporate purposes;
  • Announces results of Pre-feasibility study and estimate of mineral reserves on our Mt. Todd gold project; and
  • Changes name of our Paredones Amarillos gold project in Mexico to Concordia gold project.

Results from Operations

All dollar amounts in the following press release are in thousands of United States dollars, except share data.

Our consolidated net loss for the three-month period ended September 30, 2010, was $1,344 or $0.03 per share compared to $1,717 or $0.05 per share for the same period in 2009.  Our consolidated net loss for the nine-month period ended September 30, 2010, was $7,195 or $0.16 per share compared to consolidated net earnings of $293 or $0.01 per share for the same period in 2009.  For the nine-month period ended September 30, 2010, the increase in the consolidated net losses of $7,488 from the respective prior period is primarily due to decreases in the gain on disposal of Allied Nevada Gold Corp. marketable securities of $6,564.

On March 4, 2011, the $23,000 principal balance of our senior secured convertible notes (the "Notes") will come due.  Presently, we do not have sufficient capital to meet this obligation.  On October 22, 2010, we announced the closing of a private placement financing of special warrants (the "Private Placement").  The Corporation issued 14,666,739 special warrants for gross proceeds of $33,734.  As previously announced, these proceeds are being held in escrow until the Corporation receives shareholder and regulatory approval of the Private Placement.  In the event these approvals are not obtained by December 15, 2010, the proceeds of the Private Placement will be returned to the purchasers under the Private Placement.  (See our press release dated October 22, 2010).

Source:

Vista Gold Corp.

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