Beiträge von GSP-Komet

Goldcorp Being Pulled Under

Last Update: 9:38 AM ET May 9, 2007

May 09, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
Premier Gold Mines Ltd. (PG.T) has signed an asset exchange agreement with Goldcorp Inc.'s (GG) Red Lake Gold Mines subsidiary.
Under the agreement, Red Lake Gold has agreed to transfer to Premier an undivided 50% interest in certain mining claims in Ontario's Red Lake District known as the Rahill-Wilmar and Kostynuk Properties. Premier has agreed to transfer to Red Lake Gold an undivided 50% interest in certain mining claims in the Red Lake District known as the Bonanza and Marathon Properties.
Premier said it and Red Lake Gold have started exploration drilling on the combined properties, referred to as the Rahil-Wilmar and Kostynuk properties. Premier is funding the initial C$1 million in exploration and future exploration will be funded on a 50:50 basis.
Premier is the operator during the initial period of C$5 million in exploration, and Goldcorp will be operator thereafter. Goldcorp has the option to increase its interest in the joint venture by 1% to 51% by paying Premier C$440,000.
The Bonanza-Rahill Project is between Goldcorp's Red Lake Gold Mine to the east and the Cochenour Gold Mine, and Gold Eagle Mines Ltd.'s (GEA.T) Bruce Channel discovery to the west.

South Africa-based mining company Gold Fields (GFI) has been downgraded to a hold from a buy.

GFI's revenue growth trails the industry average. Earnings per share fell 53.3% in the third quarter of fiscal 2007 compared with the same quarter a year earlier. Although the company's stock has lost 28.3% of its value over the past 12 months, it remains more expensive than many of its peers on a price-to-earnings basis. GFI had been rated a buy since August 2006.

Last Update: 8:01 AM ET May 11, 2007

MONTREAL, QUEBEC, May 11, 2007 (MARKET WIRE via COMTEX) -- Osisko Exploration Ltd. (CA:OSK: news, chart, profile) (FRANKFURT: EWX) is pleased to announce that it has signed a binding letter of intent (LOI) with Richmont Mines Inc. (RIC:AMEX and TSX) giving Osisko the exclusive right to acquire a 100% interest in the East Amphi property, consisting of 87 claims and one mining concession. The property is located immediately north and west of the Canadian Malartic property and covers a surface area of 3187 hectares. It includes the East Amphi Mine, operated by Richmont Mines and scheduled to close at the beginning of June 2007.
Osisko will purchase a 100% interest in the East Amphi property, including surface buildings, in consideration for 1) a cash payment of $2,450,000; 2) issuing such number of common shares of Osisko equivalent to a cash value of $5,000,000, based on the average closing price of the shares for the five trading days prior to the closing date and 3) issuing an additional 100,000 common shares of Osisko. Richmont will retain a 2% NSR interest on a portion of the property and on future production of up to 300,000 ounces gold from another portion of the property. Other portions of the property are subject to NSR interests to third parties varying between 2% and 3%.
The closing date for the transaction is slated for June 15, 2007. An amount of $2,000,000 will be held under escrow until full mine closure is completed by Richmont. This transaction is subject to approval by regulatory authorities, and all securities issued under this transaction will be subject to a four month hold period.
Osisko's 100%-owned Canadian Malartic gold deposit and adjacent areas are being evaluated for a large-scale open pit, bulk-tonnage mining operation. A preliminary NI 43-101 compliant, inferred gold resource estimate on the main deposit was released on December 6, 2006 and the full report has now been filed on SEDAR. Ongoing drilling will lead to an upgraded inferred resource calculation, which is slated to be released at the end of the second quarter of 2007.

Last Update: 8:01 AM ET May 11, 2007

MONTREAL, QUEBEC, May 11, 2007 (MARKET WIRE via COMTEX) -- Richmont Mines Inc. (CA:RIC: news, chart, profile) (RIC: richmont mines inc com) is pleased to announce that it has signed today a binding letter of intent with Osisko Exploration Ltd. (OSK:TSX-V, EWX:Deutsche Boerse) giving Osisko the exclusive right to acquire a 100% interest in the East Amphi property, which property consists of 87 claims and one mining concession. The property is located immediately north and west of Osisko's Canadian Malartic property and covers a surface area of approximately 3187 hectares. It includes the underground East Amphi Mine, which is scheduled to close at the beginning of June 2007.
Richmont Mines will sell its 100% interest in the East Amphi property, including surface buildings, in consideration for 1) a cash payment of $2,450,000; 2) such number of common shares of Osisko equivalent to a cash value of $5,000,000, based on the average closing price of the shares for the five trading days prior to the closing date and 3) 100,000 additional common shares of Osisko. Richmont Mines will retain a royalty of 2% of net smelter return (NSR) on a certain portion of the East Amphi property and a 2% NSR royalty on future production of up to 300,000 ounces of gold from another portion of the property.
An amount of $2,000,000 will be held under escrow until Richmont Mines completes the full closure of the East Amphi Mine. Richmont Mines expects full mine closure to be complete by the end of June 2007.
The closing of the transaction is expected to occur on or about June 15, 2007 and is subject to the satisfaction or waiver of certain customary conditions and receipt of all regulatory approvals.
Martin Rivard
President and Chief Executive Officer
About Richmont Mines Inc.
Richmont Mines is a gold exploration, development and mining company. Since it started production in 1991, the Company has produced over 900 thousand ounces of gold from its holdings in Quebec and Newfoundland. Richmont Mines' strategy is to cost effectively develop its mining assets, exploit mineralized reserves on properties owned and acquired, or develop partnerships to expand its reserve base.
More information on Richmont Mines can be found on its website at: http://www.richmont-mines.com.

Last Update: 8:57 AM ET May 10, 2007

MONTREAL, CANADA, May 10, 2007 (MARKET WIRE via COMTEX) -- Richmont Mines Inc. (CA:RIC: news, chart, profile) (RIC: richmont mines inc com)
- Net earnings of $326,003 or $0.01 per share
- Average cash cost per ounce declined 14%
- Cash flow from operations of $4.0 million
- As of January 31, 2007, Island Gold measured and indicated resources were 477,461 ounces of gold and inferred resources were 195,550 ounces of gold
Richmont Mines Inc. (CA:RIC: news, chart, profile) (RIC: richmont mines inc com) , a gold exploration, development and mining company with properties in Northeast Canada, announced today its financial results for the first quarter of 2007, which ended March 31, 2007. Financial results are based on Canadian GAAP and dollars are reported in Canadian currency, unless otherwise noted.
Revenue for the first quarter of 2007 was $10.3 million, up 28% compared with $8.1 million in the first quarter of the prior year driven by an increase in precious metal revenue and higher revenue from gain on the sale of assets and other revenue. In the first quarter of 2007, 12,403 ounces of gold produced at a cash cost of US$493 were sold at an average price of US$659. In the same quarter the prior year, 12,108 ounces of gold produced at a cash cost of US$573 were sold at an average price of US$570.
Net earnings in the first quarter of 2007 were $326,003, or $0.01 per share, compared with net earnings of $680,447, or $0.03 per share, the prior year. Cash flow from operations was $4.0 million for the first quarter of 2007, compared with $950,067 in the prior year.
Of the ounces sold during the first quarter, 6,211 ounces of gold came from the Beaufor Mine compared with 8,362 ounces in the first quarter of 2006. Several steps were taken to improve operating results at the Beaufor Mine during the previous quarters and operations are now being conducted in well-known mining sectors near the Beaufor Fault where encouraging results were obtained. The additional 6,192 ounces of gold sold in the first quarter were from the East Amphi Mine compared with 3,746 in the first quarter of 2006. Production began at the East Amphi Mine in February 2006.
Mr. Martin Rivard, President and CEO of Richmont Mines, commented, "We implemented a number of initiatives in the previous quarters to improve operating results at the Beaufor Mine, and progress was made in the first quarter. We believe this property has excellent potential and we will continue to invest in further exploration. At Island Gold, our main priority will be making a commercial production decision. On April 30, 2007, we received notice of the acceptance of a certified Closure Plan that allows mine production to begin, and GENIVAR, an independent consultant, is finalizing a NI 43-101 technical reserve report which will be filed shortly. We will then have all elements in hands to make our production decision regarding this property."
Gain on the sale of assets and other revenue for the first quarter were $431,603 and $333,023, respectively, compared with $113,426 and $148,054 in the first quarter of 2006, respectively.
Total operating costs, including royalties, for the first quarter of 2007 were $7.2 million compared with $7.9 million in the same period the prior year. Initiatives to reduce costs at the Beaufor Mine resulted in lower operating costs for the period. Cash cost also went down at the East Amphi Mine year-over-year due to lower expenses related to underground development and stope preparation.
Total expenses for the first quarter of 2007 remained stable at $9.9 million compared with total expenses incurred in the first quarter the prior year. Administrative expenses decreased to $802,602 in this year's first quarter compared with $873,113 during the same period last year. First quarter 2007 expenses for the exploration and evaluation of projects decreased to $300,983 from $455,531 in the same period the previous year while depreciation and depletion increased to $1.6 million from $678,257, reflecting a higher depreciation and amortization rate per ounce calculated on proven and probable reserves at the end of 2006. Mining and income taxes were $185,937 in the first quarter of 2007 compared with a revenue recognition of $2.4 million recorded in the first quarter of 2006 related to the issuance of flow-through shares for the amount of $7.5 million in December 2005.

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Outlook
Mr. Rivard concluded, "Our strategy is to maximize our assets and identify advanced projects that we can participate in as well as to further improve the efficiency of our operations. Our five year goal is to become a strong, profitable intermediate-sized gold producer by adding three to four mines each producing at least 60,000 ounces of gold per year. We believe there are many opportunities that we can exploit because of our expertise. We are actively looking to uncover these opportunities through a number of avenues and hope to advance towards our goal this year."
Martin Rivard
President and Chief Executive Officer
About Richmont Mines Inc.
Richmont Mines is a gold exploration, development and mining company. Since it started production in 1991, the Company has produced over 900 thousand ounces of gold from its holdings in Quebec and Newfoundland. Richmont Mines' strategy is to cost effectively develop its mining assets, exploit mineralized reserves on properties owned and acquired, or develop partnerships to expand its reserve base.
More information on Richmont Mines can be found on its website at: http://www.richmont-mines.com.
National Instrument (NI) 43-101

Last Update: 8:12 AM ET May 11, 2007

May 11, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
Richmont Mines Inc. (RIC) has signed a binding letter of intent with Osisko Exploration Ltd. (OSK.V) giving Osisko the exclusive right to acquire a 100% interest in the East Amphi property, consisting of 87 claims and one mining concession.
The Montreal mining company said the property is immediately north and west of Osisko's Canadian Malartic property.
It said it will receive C$2.45 million plus Osisko shares valued at C$5 million. As well, it will retain a 2% net smelter return on the property.

Last Update: 9:25 AM ET May 10, 2007

May 10, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
Richmont Mines Inc. (RIC) had a 28% increase in first-quarter revenue to C$10.3 million from C$8.1 million a year earlier, as results were driven by an increase in precious-metal revenue and a gain on the sale of assets.
In the first quarter, 12,403 ounces of gold produced at a cash cost of US$493 were sold at an average price of US$659. In the same quarter the prior year, 12,108 ounces of gold produced at a cash cost of US$573 were sold at an average price of US$570.
The Montreal gold-exploration, development and mining company earned C$326,003 or 1 Canadian cent a share in the latest quarter, versus C$680,447 or 3 Canadian cents a year earlier.

Global Gold Rush: CEOs of Two Gold Companies At Various Stages of Development Update the Investor Community At Wall Street Reporter.com

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About View Resources Ltd.

View Resources Limited was incorporated in January 1986 and listed on the Australian Stock Exchange in April 2002. The company acquired the Carnilya Hill tenements in early 2003 and began mining later that year. Mining continued at Carnilya Hill until December 2005, when the mine was placed on care and maintenance. Mincor Resources farmed into the Carnilya Hill Nickel Project in late 2005 and has now met the conditions for earning a 70% stake. Mincor, as operators, plans to recommence mining operations at Carnilya Hill in late CY2007. In June 2004, View entered into an agreement with Newmont Mining to acquire the Bronzewing Gold Project for $9 million. The acquisition included the 2.3Mtpa processing facility (on care and maintenance), offices, camp, 386 koz gold resources and all exploration and mining tenements. View originally planned to re-open the mine as soon as practicable; however, higher operating costs forced these plans to be deferred in March 2005. Since this time, exploration has been ongoing and project enhancement initiatives investigated. In late 2006, the company obtained interim finance for Bronzewing from Investec Bank to progress development.

DENVER, May 08, 2007 (Dow Jones Commodities News via Comtex) -- TOP STORIES: Newmont: Indonesia Prosecutors To Appeal Pollution Acquittal
Newmont Mining Corp. (NEM), one of the world's largest gold producers, said Monday that Indonesian prosecutors plan to appeal its acquittal on charges of polluting a bay off Sulawesi Island.

By MarketWatch
Last Update: 9:29 PM ET May 7, 2007

DENVER (AP) -- Newmont Mining Corp. (NEM: Newmont Mining Corporation) , one of the world's largest gold producers, said Monday that Indonesian prosecutors plan to appeal its acquittal on charges of polluting a bay off Sulawesi Island.
A Manado District Court judge dismissed the case against the Denver-based Newmont and executive Richard Ness last month, ruling that evidence presented at trial showed that waste rock dumped into Buyat Bay by the company's now-defunct mine did not exceed government standards.
The prosecutors informed Newmont of their intent to appeal Monday, reaffirming a statement they made after the verdict was issued. They have 14 days to detail grounds for their appeal, Newmont spokesman Omar Jabara said.
Authorities alleged the rock deposited into Buyat Bay by Newmont and Ness exceeded toxic standards outlined in a 2000 permit and caused some villagers to become ill.
A police report showed mercury and arsenic levels in the bay were higher than national standards, but tests by the World Health Organization, government agencies and several independent groups found that pollutants in the water were within normal limits.
Newmont began operations in Sulawesi in 1996 and stopped mining in 2002. It continued processing ore until 2004 when the mine was permanently shut.
Last year, the company reached a $30 million settlement with Indonesia's government to end a separate civil suit over the pollution allegation, with the money to be used in part for community development.

Last Update: 5:00 PM ET May 9, 2007

RENO, Nev., May 09, 2007 (BUSINESS WIRE) -- Meridian Gold Inc. ("Meridian Gold" or the "Company") (CA:MNG: news, chart, profile) (MDG: Meridian Gold Inc) today announced that it has entered into a fully underwritten US$300,000,000 Revolving Credit facility (the "Facility") with UniCredit Group ("HVB"). The key components of this Facility include:
-- The Facility Term is for 5 years and will be used for general corporate purposes and requires no hedging.
-- The Facility carries an interest rate of LIBOR plus an interest margin ranging from 120 basis points up to a maximum of 170 basis points.
-- A Commitment Fee on the unused portion of the Facility ranges from 37.5 to 50 basis points.
-- The Facility has been fully underwritten by HVB and is not subject to syndication. Natixis Banques Populaires has provided a commitment for US$100,000,000 of the Facility and will join as a Mandated Lead Arranger upon their satisfactory review of documentation.
-- Meridian Gold may draw down on this Facility at its discretion.
Pete Dougherty, Meridian Gold's Vice President and Chief Financial Officer, commented, "We plan to grow annual production to 1 million ounces of gold within the next several years and to support that plan, we elected to enter into this Facility at a time when both our outlook and our cash position is strong. It is prudent for us to seek financing outside of Chile, where the majority of our cash balances are domiciled and subject to remittance taxes upon distribution. We anticipate that this Facility will provide the necessary liquidity to execute our future growth plans." The Company was advised by Auramet of Fort Lee, New Jersey in conjunction with this transaction.
A unique mid-tier gold producer, with world-class mining operations in Chile and Nevada and a pipeline of promising exploration projects throughout the Americas, Meridian's success to date has been based on grassroots gold discoveries and a low-cost strategy, resulting in a better approach to adding value and balancing growth. Meridian strives to be "The Premier Value Gold Mining Company," while building a better future for all of its stakeholders.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or other future events, including forecast production, earnings and cash flows, to be materially different from any future results, performances or achievements or other events expressly or implicitly predicted by such forward-looking statements.
For further information, please visit our website at http://www.meridiangold.com.
SOURCE: Meridian Gold Inc.

Pacific North West Capital/Xstrata Nickel commence drilling at West Timmins Nickel Project, South of Montcalm Mine, Ontario
TSX: PFN OTCBB: PAWEF Frankfurt: P7J

Last Update: 1:07 PM ET May 11, 2007

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Stillwater Mining Company (SWC: SWC) , the largest producer of palladium and platinum in the Western Hemisphere, recently purchased 11% of PFN and is a strategic partner in the search for new platinum group metal discoveries in North America. Stillwater Mining recently signed a letter of intent to invest $4.5 million into PFN's Alaskan exploration and reconnaissance programs including the Goodnews Bay Platinum Project. PFN is the project operator.

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Last Update: 11:25 AM ET May 11, 2007

BILLINGS, Mont., May 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- STILLWATER MINING COMPANY (SWC: Stillwater Mining Company) reported that representatives for Stillwater Mining Company and the USW International Union, Local 11-0001) commenced negotiations in Billings, Montana on May 4, 2007. Bargaining teams from the Union and Stillwater management have established the ground rules and laid the foundation for continuing negotiating meetings. Additional bargaining sessions have been scheduled. Stillwater Mining Company and USW International Union, Local 11-0001 entered into an agreement that all statements to the media concerning negotiations will be done jointly unless twenty-four hour notice has been given from one party to the other. Approximately 800 hourly employees at the mine located near Nye, Montana and the processing facilities in Columbus, Montana are covered by the current contract that expires July 1, 2007.
Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. The Company's shares are traded on the New York Stock Exchange under the symbol SWC. Information on Stillwater Mining can be found at its Website: http://www.stillwatermining.com.
SOURCE Stillwater Mining Company

Last Update: 2:10 PM ET May 9, 2007

TORONTO, ONTARIO, May 09, 2007 (MARKET WIRE via COMTEX) -- IAMGOLD Corporation ("IAMGOLD" or "the Company")(TSX: IMG) (IAG: iamgold corp com) (BSE: IAMGOLD) will release first quarter financial results before the market opens on Tuesday May 15, 2007.
A conference call will be held on Tuesday May 15, 2007 at 11:00 a.m. (EDT) to discuss these results. A webcast of the conference call will be available through the Company's website - http://www.iamgold.com.
Conference Call Information:
North America Toll-Free: 1-800-731-6941 or 416-644-3416
A replay of this conference call will be available from 2:00 p.m. May 15 to May 22, 2007. Access this replay by dialing:
North America toll-free: 1-877-289-8525 or 416-640-1917, passcode: 21228175#
A replay will also be available on IAMGOLD's website.
Please note:
This entire press release may be accessed via fax, e-mail, IAMGOLD's website at http://www.iamgold.com

Among companies, Matrix Research upgraded shares of AngloGold Ashanti (AU) to a hold rating from sell

As for the gold miners, Prudential downgraded shares of AngloGold Ashanti (AU) to a neutral rating from overweight, but the shares had barely moved in early trading.

AngloGold Ashanti cut to neutral weight at Prudential - MarketWatch

Last Update: 8:27 PM ET May 11, 2007

DENVER, Colo., May 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Vista Gold Corp. (VGZ: vista gold corp com new) (TSX: morgan stanley sparqs 11%tlab) announced today its financial results for the three months ended March 31, 2007, as filed on May 10, 2007, with the US Securities and Exchange Commission and with the relevant securities commissions in Canada in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended March 31, 2007, of US$776,000 or US$0.02 per share compared to a consolidated net loss of US$1,108,000 or US$0.05 per share for the same period in 2006. The decrease in the consolidated net loss of US$332,000 from the prior year is largely due to an increase in interest income of US$568,000 as well as increased gains on the disposal of marketable securities of US$163,000. These increases in income were partly offset by increases in exploration, property evaluation and holding costs of US$78,000, corporate administration and investor relations costs of US$216,000 and stock-based compensation costs of US$100,000.
Net cash used for operations was US$920,000 for the three-month period ended March 31, 2007, compared to US$1,041,000 for the same period in 2006. The decrease of US$121,000 is the result of an increase in cash used for accounts receivable of US$337,000, an increase in supplies inventory, prepaids and other of US$134,000 and an aggregate decrease of non-cash items of US$111,000, partially offset by a decrease in accounts payable and accrued liabilities of US$371,000 and a decrease in the consolidated net loss of US$332,000.
Net cash used for investing activities increased to US$2.0 million for the three-month period ended March 31, 2007, from US$1.4 million for the same period in 2006. The increase of US$0.6 million is primarily the result of an increase in the addition of mineral properties of US$1.4 million of which a significant portion is the result of the drilling program in progress at the Mt. Todd gold mine, which was acquired during 2006. This increase is partially offset by a decrease of US$1.0 million in acquisitions of mineral properties. This represents the funds that Vista Gold placed in escrow during the same period in 2006 in connection with the acquisition of the Mt. Todd gold mine, which was completed in June 2006. There were no comparable expenditures related to acquisitions during the 2007 period.
Net cash provided by financing activities decreased to US$1.0 million for the three-month period ended March 31, 2007, from US$5.5 million for the same period in 2006. Warrants exercised during the period ended March 31, 2007 produced cash proceeds of US$1.2 million as compared to US$2.0 million for the same period in 2006. Stock option exercises produced cash of US$17,000 during the period ended March 31, 2007 as compared to US$293,000 for the same period in 2006. In February 2006, we completed a private placement financing for net proceeds of US$3.21 million. There were no comparable transactions in the 2007 period. The increase of US$0.3 million for prepaid transaction costs for the period ended March 31, 2007 as compared to the same period in 2006 is due to costs incurred in connection with the proposed Arrangement transaction involving Vista Gold, Allied Nevada Gold Corp. and Carl and Janet Pescio, which closed on May 10, 2007 (see discussion below). With the completion of the Arrangement, these costs will offset any gain that we realize on the transaction.
At March 31, 2007, our total assets were US$94.0 million compared to US$92.7 million at December 31, 2006, representing an increase of US$1.3 million. At March 31, 2007, we had working capital of US$48.4 million compared to US$49.8 million at December 31, 2006, representing a decrease of US$1.4 million. This decrease relates to a decrease in cash balances from year end and an increase in liabilities.
The principal component of working capital at both March 31, 2007 and December 31, 2006, is cash and cash equivalents of US$46.8 million and US$48.7 million, respectively. Other components include supplies inventory, prepaids among other things (March 31, 2007 -- US$510,000; December 31, 2006 -- US$381,000), marketable securities (March 31, 2007 -- US$1,242,000; December 31, 2006 -- US$791,000) and other liquid assets (March 31, 2007 -- US$1,100,000; December 31, 2006 -- US$773,000). At March 31, 2007, we had no outstanding debt to banks or financial institutions.

Last Update: 2:47 PM ET May 10, 2007

DENVER, May 10, 2007 /PRNewswire-FirstCall via COMTEX/ -- Vista Gold Corp. (VGZ: vista gold corp com new) ("Vista") and Allied Nevada Gold Corp. (Amex: ANV; Toronto) ("Allied Nevada") announce that the new common shares of Vista and the shares of common stock of Allied Nevada ("Allied Nevada Shares") began trading today on the Toronto Stock Exchange (the "TSX") and the American Stock Exchange (the "AMEX"). The listings on the TSX and the AMEX result from the completion of the previously announced plan of arrangement involving Vista, Allied Nevada and Carl and Janet Pescio that closed earlier today. The completion of the transaction resulted in, among other things, the transfer of Vista's Nevada properties to Allied Nevada. Accordingly, shareholders should be aware that Vista no longer holds any interest in these Nevada properties and trading in the Vista shares on both exchanges is ex-distribution of the Allied Nevada Shares distributed pursuant to the arrangement.
As previously announced, for each share of Vista that a shareholder owned immediately prior to the effective time of the arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista, (b) 0.794 of an Allied Nevada Share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada. The amount of any cash payment in lieu of a fractional share is equal to the product of: (i) the fractional interest; multiplied by (ii) US$5.00.
About Vista Gold Corp.
Since 2001, Vista has acquired a number of discovered gold projects with the expectation that higher gold prices would significantly increase their value. As gold prices have risen, Vista has completed various preliminary evaluations that have confirmed that some of the projects would be potentially viable operations at today's gold prices. Currently, Vista is undertaking technical programs to bring the most advanced projects to the point where decisions can be made to put these projects into production, either by Vista, or through sale or joint venture to other mining companies. The Company's holdings include the Paredones Amarillos and Guadalupe de los Reyes Projects in Mexico, Mt Todd Project in Australia, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long Valley Project in California, and the Amayapampa Project in Bolivia.
About Allied Nevada Gold Corp.
Allied Nevada has a large land position in Nevada, providing a strong platform from which to aggressively pursue growth opportunities. Allied Nevada has more than 250 square miles of exploration and development properties, located in some of the most prolific gold mining trends in the State of Nevada. Allied Nevada's seasoned executive team is committed to the goal of maximizing the value of the company and rewarding shareholders for their confidence in the Allied Nevada business model. Allied Nevada's board of directors is chaired by Robert Buchan and includes executives with experience in legal, accounting, investment banking, exploration and operations.