Schwab and Quicken both report VGZ closing at US$1.00. I too think it's a mistake. However, the stock is moving in the right direction. VGZ, a real steal at recent lows.
Here's some recent news:
Vista Gold To Buy Nevada Gold Mine From Cornucopia Resources
Dow Jones Online News, Friday, September 11, 1998 at 01:19
VANCOUVER, British Columbia -(Dow Jones)- Vista Gold Corp. late
Thursday said it signed a letter of intent to buy Mineral Ridge
Resources Inc. from mining concern Cornucopia Resources Ltd. in a deal
with an indicated value of about $500,000.
Vancouver-based Cornucopia (CNPGF) said the transaction price is
about 1.6 million Vista common shares worth $250,000 and Vista's (VGZ) subscription to a Cornucopia private placement of about 2.8 million
common shares valued at $250,000. Closing is expected by Oct. 1.
Mineral Ridge Resources owns a gold mine near Silver Peak, Nev.
Production at the mine was suspended in December, but Vista said it believes the mine can be put back into production at a profitable level.
Denver-based Vista said a preliminary production plan estimates about 180,000 ounces of gold production over the next four years, at an average cash cost of $220 an ounce. Projected 1999 production is 58,000 ounces of gold.
Cornucopia said the transaction should relieve it of extensive liabilities and provide funds for its interest in the Ivanhoe Joint Venture in the Carlin Trend, Nev.
Cornucopia plans to grant incentive options to directors and employees for the purchase of about 1.4 million shares. The options are exercisable on or before Sept. 10, 2003.
Vista Plans to Acquire Mineral Ridge Mine
PR Newswire, Thursday, September 10, 1998 at 21:15
DENVER, Sept. 10 /PRNewswire/ -- Vista Gold Corp. (AMEX:VGZ; Toronto)
("Vista") is pleased to announce that its Board of Directors has approved, in
principle, the acquisition of Mineral Ridge Resources Inc. ("MRRI") from
Cornucopia Resources Ltd. ("Cornucopia"). Vista's board approval is
contingent upon the completion of due diligence, finalizing definitive
agreements with the major creditors of MRRI and receipt of all required
regulatory approvals. Vista will acquire all of the shares of MRRI in
consideration for common shares of Vista valued at US $250,000 and Vista
subscribing to a US $250,000 private placement in Cornucopia. A letter
agreement confirming the intent of the two companies was signed today.
The Mineral Ridge mine, the only asset of MRRI, is located near the town
of Silver Peak, approximately 35 miles southwest of Tonopah, Nevada. The
Mineral Ridge plant and facilities were completed in May 1997 for a cost of
approximately US $17 million. The first gold was poured on June 20, 1997, but
for a number of reasons, the project failed to reach commercial production.
In December 1997, mining operations were suspended at the project. Vista has
completed a preliminary technical review of the project and believes that,
with appropriate modifications to the mine plan, crushing plant and an
enhanced water supply, the mine can be put back into production at a
profitable level. Vista will move a portion of its mining fleet from its
Hycroft mine, including four 150-ton trucks and a 23-cubic-yard hydraulic
shovel, to the Mineral Ridge property. At the time of closure, Mineral Ridge
had a reserve of approximately three million tons at a grade of 0.066 ounces
per ton containing 199,500 ounces of gold. Vista will complete a definitive
mine plan and ore reserve estimate as part of its due diligence, but
preliminary estimates employing the lower cost structure of the larger mining
equipment indicate that the proven and probable reserves could be increased to
230,000 _ 250,000 ounces of gold. A preliminary production plan has been
completed which projects approximately 180,000 ounces of gold production over
the next four years, at an average total cash cost of US $220 per ounce.
Production for 1999 is projected at 58,000 ounces of gold.
Vista has reached a preliminary agreement and signed an indicative term
sheet concerning the mine debt financing facility, subject to credit committee
approval, with Dresdner Bank, MRRI's principal creditor. The outstanding
balance of this loan, including accrued interest, is approximately
US $13.3 million. The principal terms of the agreement call for the loan to
be repaid out of 70 percent of the cash flow of the project (leaving
30 percent to Vista) after Vista has deducted management fees. The loan will
be secured by the assets of MRRI and the approximately US $5 million worth of
mining equipment which Vista will use to mine the project. As part of the
agreement, Vista will be able to liquidate approximately 58,000 ounces of
forward gold hedges to realize approximately US $3.5 million to be used as
working capital and to pay for capital improvements to the project. In
addition, approximately 40,000 ounces of forward gold hedges, priced at an
average price of US $388 per ounce, will be left in place for gold production
in 1999.
It is expected that due diligence and definitive agreements will be
completed by October 1, 1998. Following positive due diligence, Vista will
mobilize mining equipment and staff immediately to commence mine production
this year, with the first gold expected to be poured towards the end of 1998.
Mike Richings, President and CEO, said of the transaction, "We are able to
acquire this property as a direct result of our demonstrated ability to mine
and operate low cost gold operations. The Mineral Ridge deposit is
significantly higher grade than the Hycroft mine, and that is reflected in
lower projected cash costs. The cash flow from the project, together with the
significant exploration upside on the property, makes it an excellent
acquisition for us. With a concerted exploration program, we hope to increase
the reserves over the next couple of years to 500,000 ounces."
Vista Gold Corp. is an international gold mining, development and
exploration company based in Denver, Colorado. Its holdings include the
Hycroft mine in Nevada, development projects in Bolivia and exploration
projects in North and South America.
Vista Announces Record Second Quarter Production and One-Millionth Ounce
Produced at Hycroft
PR Newswire, Thursday, August 06, 1998 at 09:25
DENVER, Aug. 6 /PRNewswire/ -- Vista Gold Corp. (the "Company")
(AMEX:VGZ; Toronto) reported net earnings of US$0.5 million for the three
months ended June 30, 1998 or US$0.01 per share compared to a net loss of
US$1.2 million or US$0.01 per share for the same period in 1997. For the
first six months of 1998, the Company reported net earnings of US$2.7 million
or US$0.03 per share compared to a net loss of US$1.9 or US$0.02 per share for
the same period in 1997.
The Company's Hycroft mine in Nevada reported its second consecutive
quarter of record gold production. The mine produced 35,171 ounces of gold in
the second quarter for a total of 70,188 ounces in the first six months of the
year. This compares to second quarter 1997 production of 30,404 ounces and
60,539 ounces for the first six months of 1997.
Record gold production, together with measures taken to reduce costs,
resulted in a cash operating cost per ounce of $207 for the three months ended
June 30, 1998, a decrease of $47, or 19 percent, from 1997. For the six
months ended June 30, 1998, the cash operating cost per ounce was $207 as
compared to $264 for the same period in 1997.
SUMMARY RESULTS
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
(U.S. dollars in thousands,
except share data)
Gold sales $11,199 $10,635 $22,170 $21,301
Net earnings (loss) 502 (1,191) 2,680 (1,883)
Cash provided by
operating activities 1,807 694 13,154 1,823
Cash operating cost
per ounce 207 254 207 264
Net earnings (loss)
per share 0.01 (0.01) 0.03 (0.02)
Gold production
(ounces) 35,171 30,404 70,188 60,539
The measures taken to reduce costs included reducing mining activities and
planning for complete suspension of mining at the end of May. As a result of
higher than expected grades at the Brimstone pit however, the Company has been
able to defer the suspension until September. The impact of higher grades and
deferred suspension will be to increase estimated production for 1998 to
108,000 ounces -- gold production will continue through 1999 into 2000 from
inventoried ore.
The Company has examined various mining plans that will allow resumption
of mining when gold prices return to more normal levels. In the short-term,
the Company will commence reclamation in areas that will not be affected by
future operations. The Hycroft property is not fully explored and the Company
is pursuing joint venture opportunities to explore for deeper and potentially
higher-grade ore.
Following the second quarter's record gold production, the Hycroft mine
produced its one-millionth ounce of gold on July 12, 1998. "The Hycroft
operation has achieved a major production milestone due to the efforts of the
employees. We are very proud of the Hycroft team, who have successfully
demonstrated the Company's ability to run an efficient and low-cost operation
under very difficult conditions," said Mike Richings, President and CEO.
Also, subsequent to June 30, 1998, Zamora Gold Corp. ("Zamora"), a company
in which Vista is a significant shareholder, completed the acquisition of
various property interests in Ecuador from Compania Minera Gribipe, S.A.
("Gribipe"), a major Ecuadorian mineral exploration company. As a condition
of the transaction, Zamora issued 39.5 million common shares to Gribipe for
the acquisition of the property interests and an additional 7.6 million common
shares to Vista in settlement of debts owed to Vista by Zamora. Vista's
ownership of Zamora has been reduced from 48.7 percent to 26.5 percent as a
result of the transaction.
Vista Gold Corp. is an international gold mining, development and
exploration company based in Denver, Colorado. Its holdings include the
Hycroft mine in Nevada, development projects in Bolivia, and exploration
projects in North and South America.
The statements that are not historical facts are forward-looking
statements involving known and unknown risks and uncertainties that could
cause actual results to vary materially from the targeted results. Such risks
and uncertainties include those described in the Company's Form 20-F as
amended.
For further information, please contact Investor Relations at
(303) 629-2450 or (888) 629-2450. |
