DENVER, March 17, 2022–(BUSINESS WIRE)–Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) today announced that CIBC Capital Markets (“CIBC”) has been appointed as a strategic advisor to lead a formal process to assist Vista in the evaluating a wide range of alternatives to unlock the value of the company’s 100% owned Mt Todd Gold Project (“Mt Todd” or the “Project”) and arranging an accretive transaction.
Frederick H. Earnest, President and CEO, said, “We are focused on maximizing shareholder value through realizing the intrinsic value of the world-class Mount Todd project. We have advanced and reduced Mount Todd’s risk through a disciplined and methodical approach. process, including the recently completed Feasibility Study (“FE”), which confirms the strength of Mt Todd’s gold production capability and its ability to deliver a solid economics with compelling cash flows over a 16 year life.” To see Vista FS Press Release and Webcast Mt Todd FS.
Mt Todd FS Highlights:
NPV after tax5% of $999.5 million and an IRR of 20.6% at a gold price of $1,600 and an exchange rate of $0.71;
NPV after tax5% of $1.5 billion and an IRR of 26.7% at a gold price of $1,800 and an exchange rate of $0.71;
After-tax cash flow at a gold price of $1,800 of $2.1 billion for years 1 through 7 of trading operations; and
Average annual production of 479,000 ounces of gold in years 1 to 7 of commercial operation.
Note: All dollar amounts stated herein are in US currency and are expressed in dollars, unless otherwise specified. All exchange (“Fx”) rates are in US dollars per Australian dollar.
Mr. Earnest concluded: “We believe the FE provides greater confidence in project design, capital and cost estimates, while highlighting the nearly 20% increase in reserves of gold of the project and continued overall economic strength reflecting current market conditions We have received all major environmental, operational and social approvals required for the development of Mt Todd These achievements, along with the size and location of the project, position uniquely Mt Todd as a highly attractive, shovel-ready opportunity for a wide range of potential development scenarios.We are delighted to be working with CIBC to identify and evaluate alternatives for the development of Mt Todd.We plan to conduct a thorough process and to consider a wide range of development alternatives, our main objective being to maximize the value for the Vista shareholders. To see CEO Video.
Mt Todd Technical Report Repositories
For more information on Mt Todd, please refer to the technical report summary titled “SK 1300 Technical Report Summary – Mt Todd Gold Project – 50,000 tpd Feasibility Study – Northern Territory, Australia” with an effective date of 31 December 2021 and an issue date of February 9, 2022, available on EDGAR at www.sec.gov/edgar.shtml; 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 at www.sedar.com. Both reports can also be viewed on the Vista website at www.vistagold.com.
The technical data and economic conclusions of these reports are identical, with minor differences between the reports resulting solely from the respective disclosure requirements of SK 1300 and NI 43-101.
John Rozelle, Senior Vice President of Vista, a Qualified Person as defined by 43-101, has approved this press release.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset is the Mt Todd Gold Project located in the mining-friendly Tier 1 jurisdiction of Northern Territory, Australia. Located approximately 250 km southeast of Darwin, Mt Todd is the largest undeveloped gold project in Australia. All major environmental and operating permits have now been approved. For more information, please contact Pamela Solly, Vice President of Investor Relations, at (720) 981-1185.
This press release contains forward-looking statements within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will occur or may occur in the future, including our belief that we are focused on maximizing shareholder value through recognition of the intrinsic value of Mount Todd; our belief that we have advanced and reduced Mount Todd’s risk through a disciplined and methodical process, including the recently completed FS; our belief that the EF confirms the strength of Mt Todd’s gold production capability and its ability to provide a strong economy with attractive cash flows over a 16-year life; our belief that FE provides greater confidence in project design, capital and cost estimates, while highlighting nearly 20% increase in project gold reserves and overall saving solid and continuous reflecting current market conditions; our belief that the project is uniquely positioned as a highly attractive, shovel-ready opportunity for a wide range of potential development scenarios; and our belief that we will conduct a comprehensive process and consider a broad range of development alternatives, with our primary focus on maximizing value for Vista shareholders are forward-looking statements and forward-looking information. The important factors and assumptions used to develop the forward-looking statements and forward-looking information contained in this press release include the following: there are no changes in laws or regulations affecting the development of the mine or the mining activities , our assumptions regarding current economic conditions, the price of gold and current market conditions. When used in this press release, the words “expect”, “intend”, “believe”, “may”, “should”, “if”, “anticipate” and other similar expressions are intended to identify forward-looking statements and -research information. These statements involve known and unknown risks, uncertainties and other factors that 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 these statements. . These factors include, among others, risks related to political and economic instability; changes in laws or regulations affecting mining development or mining operations, uncertainty regarding current economic conditions, the price of gold and current market conditions; as well as the factors discussed under the headings “Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K filed February 24, 2022 and other filings with the Securities and United States Exchange Commission and Canadian Securities Administrators. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements and information, there may be other factors that cause results not to be those anticipated, estimated or forecast. Except as required by law, we undertake no obligation to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future events or otherwise.
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Vice President of Investor Relations