Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today provided a strategic update and outlined 2024
priorities for the Company’s Mt Todd gold project (“Mt Todd” or the
“Project”) located in Northern Territory (“NT”), Australia. All
dollar amounts are in US dollars.
Frederick H. Earnest, President and CEO of Vista, commented,
“Our top priority in 2024 is realizing value for our shareholders.
We believe this can best be accomplished through a strategic
transaction at Mt Todd. We continue to work with CIBC Capital
Markets to identify and advance interest in Mt Todd and are focused
on completing a transaction that maximizes shareholder value.
“We believe that work to cost-effectively de-risk and
demonstrate the significant value of Mt Todd is integral to our
work with CIBC. The drilling program that will commence in the
coming weeks is expected to add substantial near-surface gold
resources, benefiting the mine production schedule and project cash
flows in early years. We believe that alternative development
strategies offer valuable optionality as we focus on creating
shareholder value and attracting strategic interest in Mt Todd. Our
previous work indicates that staged development has the potential
to greatly reduce the initial capital requirement, while delivering
attractive economic returns and preserving the option for
long-term, large-scale production.”
2024 Outlook
In addition to the ongoing work with CIBC to complete a
partnering or other value adding transaction for Mt Todd, Vista
plans to undertake the following activities which we believe will
further add value and minimize risk for shareholders.
Gold Resources Development
The Company plans to commence a drill program totaling 6,000 –
7,000 meters, with the focus to add shallow gold resources at the
north end of the Batman deposit. This drilling program is a
condition of our previously announced royalty transaction.
Management believes that if we are able to convert gold resources
to gold reserves this would add substantial value to Mt Todd by
improving cash flow as a result of a more constant production
profile, reduced stripping, and increased mine life for all
development scenarios. Mobilization of the first drill rig is in
process and drilling is expected to begin in late January or early
February. The proposed drilling is expected to have an all-in cost
of approximately $2 million and to be completed by year end.
Evaluate Lower Capex – Staged Development
Strategy
Vista plans to leverage the results of the drilling program and
prior technical studies by advancing evaluations of staged
development scenarios for Mt Todd. Previous studies demonstrated
the opportunity to significantly lower the initial capex, maintain
high margins and deliver attractive economic returns. We believe
that alternative development strategies offer valuable optionality
as we focus on creating shareholder value and attracting investor
interest in Mt Todd. The scope of technical studies will be defined
after initial drilling results are evaluated.
Balance Sheet Strength
The Company’s recent $20 million royalty transaction provides a
solid foundation for our efforts to best realize value for
shareholders. It was achieved without equity dilution and places us
in a strong financial position as we continue our work with CIBC.
Royalty proceeds in December 2023 were $3 million. The remaining
royalty proceeds totaling $17 million are expected to be received
by the end of the second quarter 2024. Management plans to maintain
similar spending levels for costs of a recurring nature, continue
to pursue cost reductions where possible, and leverage prior
technical studies for the staged development evaluation.
Inaugural ESG Report
We plan to publish our first ESG report in the first quarter of
2024. Vista is committed to the advancement of Mt Todd consistent
with established ESG principles. We strive for compliance and are
pleased to issue a report that summarizes our achievements and
priorities in the near future.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is Mt Todd, located in the mining friendly jurisdiction of Northern
Territory, Australia. Situated approximately 250 km southeast of
Darwin, Mt Todd is among the largest development stage
opportunities in Australia and continues to demonstrate compelling
economics. All major environmental and operating permits necessary
to initiate development of Mt Todd are in place.
Mt Todd benefits from its location in a leading mining
jurisdiction and demonstrates multiple opportunities to add value
through growth of mineral resources, staged development, and other
value adding and de-risking activities.
For further information about Vista or Mt Todd, please contact
Pamela Solly, Vice President of Investor Relations, at (720)
981-1185 or visit the Company’s website at www.vistagold.com.
Scientific and Technical Information
For information on the Company’s mineral resources and mineral
reserves, please see the technical report summary entitled “S-K
1300 Technical Report Summary - Mt Todd Gold Project - 50,000 tpd
Feasibility Study – Northern Territory, Australia” with an
effective date of December 31, 2021, an issue date of February 9,
2022 and an amended date of February 7, 2023 available on EDGAR or
the technical report entitled “NI 43-101 Technical Report - Mt Todd
Gold Project - 50,000 tpd Feasibility Study – Northern Territory,
Australia” with an effective date of December 31, 2021 and an issue
date of February 9, 2022 available on SEDAR+.
John Rozelle, a “qualified person” as defined by Canadian
National Instrument 43-101 Standards of Disclosure for Mineral
Projects, has verified the data underlying the information
contained in and has approved this press release.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933, as amended, and U.S.
Securities Exchange Act of 1934, as amended, and forward-looking
information within the meaning of Canadian securities laws. All
statements, other than statements of historical facts, included in
this news release that address activities, events or developments
that we expect or anticipate will or may occur in the future,
including such things as our belief that realizing value for our
shareholders can best be accomplished through a strategic
transaction at Mt Todd; our belief that work to cost-effectively
de-risk and demonstrate the significant value of Mt Todd is
integral to our work with CIBC; our belief that the drilling
program that will commence in the coming weeks is expected to add
substantial near-surface gold resources, benefiting the mine
production schedule and project cash flows in early years; our
belief that alternative development strategies offer valuable
optionality as we focus on creating shareholder value and
attracting strategic interest in Mt Todd; our belief that our
previous work also indicates that staged development has the
potential to greatly reduce the initial capital requirement, while
delivering attractive economics and preserving the option for
long-term, large-scale production; Vista plans to undertake
activities that management believes will further add value and
minimize risk for shareholders, including gold resource
development, evaluating a lower initial capex staged development
strategy, strengthening the balance sheet, and publishing the
Company’s inaugural ESG report; the Company plans to commence a
drill program totaling 6,000 – 7,000 meters, with the focus to add
shallow gold resources at the north end of the Batman deposit; our
belief that if we are able to convert gold resources to gold
reserves this would add substantial value to Mt Todd by improving
cash flow as a result of a more constant production profile,
reduced stripping, and increased mine life for all development
scenarios; our belief that drilling is expected to begin in late
January or early February; our belief the proposed drilling is
expected to have an all-in cost of approximately $2 million and to
be completed by year end; it is uncertain if further drilling will
result in additional gold resources and if such gold resources can
be converted to gold reserves; our belief that the Company’s recent
$20 million royalty transaction provides a solid foundation for our
efforts to best realize value for shareholders and places us in a
strong financial position as we continue our work with CIBC; our
belief the remaining proceeds totaling $17 million are expected to
be received by the end of the second quarter 2024; management plans
to maintain similar spending levels for costs of a recurring
nature, continue to pursue cost reductions where possible, and
leverage prior technical studies for the staged development
evaluation; Vista plans to leverage the results of the drilling
program and prior technical studies by advancing evaluations of
staged development scenarios for Mt Todd; our belief that previous
studies demonstrated the opportunity to significantly lower the
initial capex, maintain high margins, and deliver attractive
economic returns; our belief that alternative development
strategies offer valuable optionality as we focus on creating
shareholder value and attracting investor interest in Mt Todd; our
belief that the scope of technical studies will be defined after
initial drilling results are evaluated; Vista plans to publish its
first ESG report in the first quarter of 2024; our belief that Mt
Todd is among the largest development stage opportunities in
Australia and continues to demonstrate compelling economics; our
belief that all major environmental and operating permits necessary
to initiate development of Mt Todd are in place; our belief that Mt
Todd benefits from its location in a leading mining jurisdiction;
and our belief that Mt Todd demonstrates multiple opportunities to
add value through growth of mineral resources, staged development,
and other value adding and de-risking activities are
forward-looking statements and forward-looking information. The
material factors and assumptions used to develop the
forward-looking statements and forward-looking information
contained in this news release include the following: our forecasts
and expected cash flows; our projected capital and operating costs;
our expectations regarding mining and metallurgical recoveries;
mine life and production rates; that laws or regulations impacting
mine development or mining activities will remain consistent; our
approved business plans, our mineral resource and reserve estimates
and results of preliminary economic assessments; preliminary
feasibility studies and feasibility studies on our projects, if
any; our experience with regulators; political and social support
of the mining industry in Australia; our experience and knowledge
of the Australian mining industry and our expectations of economic
conditions and the price of gold. When used in this news release,
the words “optimistic,” “potential,” “indicate,” “expect,”
“intend,” “plans,” “hopes,” “believe,” “may,” “will,” “if,”
“anticipate” and similar expressions are intended to identify
forward-looking statements and forward-looking information. These
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such statements. Such factors include, among others, uncertainty of
resource and reserve estimates, uncertainty as to the Company’s
future operating costs and ability to raise capital; risks relating
to cost increases for capital and operating costs; risks of
shortages and fluctuating costs of equipment or supplies; risks
relating to fluctuations in the price of gold; the inherently
hazardous nature of mining-related activities; potential effects on
our operations of environmental regulations in the countries in
which it operates; risks due to legal proceedings; risks relating
to political and economic instability in certain countries in which
it operates; uncertainty as to the results of bulk metallurgical
test work; and uncertainty as to completion of critical milestones
for Mt Todd; as well as those factors discussed under the headings
“Note Regarding Forward-Looking Statements” and “Risk Factors” in
the Company’s latest Annual Report on Form 10-K as filed in
February 2023, subsequent Quarterly Reports on Form 10-Q, and other
documents filed with the U.S. Securities and Exchange Commission
and Canadian securities regulatory authorities. Although we have
attempted to identify important factors that could cause actual
results to differ materially from those described in
forward-looking statements and forward-looking information, there
may be other factors that cause results not to be as anticipated,
estimated or intended. Except as required by law, we assume no
obligation to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240115333014/en/
Vista Gold Corp. Pamela Solly, 720-877-0136
psolly@vistagold.com
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