Vista Gold (VGZ-T) Aug 2nd 2016 is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters led by Cantor Fitzgerald Canada Corporation and Rodman & Renshaw a unit of H.C. Wainwright & Co., LLC, acting as co-lead underwriters and joint book-running managers and representatives of the underwriters named therein, under which the underwriters have agreed to buy on an underwritten basis 10,750,000 units, each Unit consisting of one common share and one half of one common share purchase warrant, at a price of US$1.40 per Unit for gross proceeds of US$15,050,000. Each Warrant will be exercisable for 36 months following the closing date and will entitle the holder thereof to purchase one Share upon exercise at an exercise price of US$1.92 per Share, subject to adjustment.
The Company has granted the underwriters an option, exercisable in whole or in part, to purchase up to an additional 15% of the Units issued under the Offering to cover over-allotments, if any, and for market stabilization purposes.
The Offering is expected to close on or about August 8, 2016, subject to obtaining customary TSX and NYSE MKT approvals.
The Company intends to allocate the net proceeds from the Offering to pursue completion of the permitting and to perform selected technical studies that the Company believes will further de-risk the Mt Todd gold project, enhance the economics of Mt Todd and prepare it for development if and when economic conditions warrant. Remaining proceeds will be used for working capital requirements and/or for other general corporate purposes which include ongoing regulatory, legal and accounting expenses, management and administrative expenses, and other corporate initiatives.
The Company will file a prospectus supplement with the securities commissions in each province and territory of Canada (other than Quebec) to supplement the Company's Canadian short form base shelf prospectus dated July 11, 2014, and the Company will file a prospectus supplement to the Company's current shelf registration statement on Form S-3, effective August 15, 2014 with the United States Securities and Exchange Commission (the "SEC"), in connection with the Offering for which this communication relates (collectively, the "Offering Documents"). The Offering Documents will contain important detailed information about the securities being offered.
Before you invest, you should read the Offering Documents and other documents that the Company has filed with the SEC for more complete information about the Company and the Offering. Copies of the Underwriting Agreement and the Offering Documents will be available for free by visiting the Company's profiles on SEDAR at www.sedar.com or EDGAR at www.sec.gov/edgar.shtml, as applicable.
Alternatively, a copy of the Offering Documents can be obtained by contacting the Company, attention: Connie Martinez at (720) 981-1185, Suite 5, 7961 Shaffer Parkway, Littleton, Colorado 80127 or by contacting any underwriter or any dealer participating in the offering at Cantor Fitzgerald Canada Corporation, attention: Equity Capital Markets, 181 University Avenue, Suite 1500, Toronto, ON, M5H 3M7, email: ecmcanada@cantor.com, or Rodman & Renshaw a unit of H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, email: placements@hcwco.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, Units, Warrants or Shares in any state or province in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state, province, or other jurisdiction.
About Vista Gold Corp.
The Company is a well-funded gold project developer. Our principal asset is our flagship Mt Todd gold project in Northern Territory, Australia where we continue to work to identify opportunities to improve project economics with the goal of advancing the project toward development. We also hold approximately 4.4% of the outstanding common shares of Midas Gold Corp., non-core projects in Mexico and the United States and royalty interests in Indonesia. For more information about our projects, including technical studies and resource estimates, please visit our website at www.vistagold.com. |
