Vista Gold Corp. Announces Receipt of the $10 Million Final Instalment Payment Under Wheaton Precious Metals Royalty

Rhea-AI Summary

Vista Gold has received the final $10 million installment from Wheaton Precious Metals under a royalty agreement. This payment is the last part of a $20 million royalty aimed at advancing Vista's Mt Todd gold project in Australia and supporting general corporate purposes. The payment was made after Vista Gold Australia met specific conditions, including the start of a designated drilling program at Mt Todd.

Positive

• Received final $10 million installment from Wheaton Precious Metals.
• Payment will advance the Mt Todd gold project and support general corporate purposes.
• Completion of $20 million royalty agreement.

Negative

• Payment contingent on specific conditions, which could imply potential risks if conditions are not met in future agreements.

Insights

Financial Analyst

Vista Gold Corp.'s receipt of the $10 million final instalment from Wheaton Precious Metals under the royalty agreement underscores the progress and financial backing for the Mt Todd gold project. For retail investors, this indicates a significant cash inflow which can be utilized to further develop the Mt Todd project and meet other corporate needs. The immediate use of these funds reflects positively on the company’s liquidity and ability to push forward with its mining operations.

This cash injection can enhance Vista Gold's financial health in the short term, mitigating financial risks related to project delays or cost overruns. However, investors should remain cautious about the longer-term success of the Mt Todd project, as the mining industry is notoriously volatile and subject to commodity price fluctuations.

By securing this final payment, Vista Gold meets important milestones which may boost investor confidence and support stock stability. Yet, careful attention should be given to the actual progress on the ground in the coming months.

Market Research Analyst

The completion of the royalty payment agreement between Vista Gold and Wheaton Precious Metals is a positive development from a market perspective. This final instalment signals a stronger partnership and increased credibility in the market for Vista Gold. Investors would interpret this as a vote of confidence from Wheaton Precious Metals, a well-established player in the industry.

The Mt Todd project, bolstered by this financial support, holds potential for significant gold production. However, the broader market conditions, including gold prices, will play a critical role in determining the ultimate success of this venture. Investors should watch for updates on drilling results and any further developments on site to assess future profitability.

Additionally, this move may influence stock market perceptions, potentially driving up Vista Gold’s stock price in the short term. The key watch-points would be operational efficiencies and project timelines moving forward.

Mining Industry Expert

From an operational standpoint, the receipt of the final instalment payment is a critical milestone for Vista Gold’s Mt Todd project. The funds will likely accelerate the drilling and development phases. Given the geological complexity and the technical challenges of mining operations, having a secured financial backing helps in maintaining project momentum and addressing unforeseen challenges.

In the mining industry, such financial agreements are pivotal as they lessen the economic burden on the project developer and ensure continuous progress. Yet, stakeholders should be aware of the inherent risks in mining projects, including operational delays, cost escalations and regulatory hurdles that can impact project timelines and financial outcomes.

With the financial assurance from Wheaton Precious Metals, Vista Gold is better positioned to navigate these challenges. However, long-term success will still heavily depend on the efficiency of the on-ground operations and market conditions favorable to gold mining.

DENVER--(BUSINESS WIRE)-- Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Vista Gold Australia Pty. Ltd. (“Vista Australia”) has received the third and final instalment payment of $10 million (“Final Instalment”) under the royalty agreement between Vista Australia and Wheaton Precious Metals (Cayman) Co., an affiliate of Wheaton Precious Metals Corp. (“Wheaton”) dated December 13, 2023 (“Royalty Agreement”), in relation to the Company’s Mt Todd gold project (“Mt Todd” or the “Project”) located in Northern Territory, Australia. All dollar amounts in this news release are in US dollars.

The Final Instalment is part of the $20 million royalty with Wheaton, which will be used to advance Mt Todd and for general corporate purposes. Receipt of the Final Instalment followed satisfaction of certain conditions precedent to this instalment, which included the commencement by Vista Australia of a designated drilling program at Mt Todd and other customary conditions, representations, and warranties. The principal terms of the Royalty Agreement are as described in the Company’s news release dated December 14, 2023. See News Release.

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 one of the largest development stage opportunities in Australia and demonstrates 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 offers opportunities to add value through growth of mineral reserves, alternative development strategies, and other 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.

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 Mt Todd is one of the largest development stage opportunities in Australia and demonstrates compelling economics; our belief that Mt Todd benefits from its location in a leading mining jurisdiction; and our belief that Mt Todd offers opportunities to add value through growth of mineral reserves, alternative development strategies, and other 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,” “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 March 2024, 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/20240620807462/en/

Pamela Solly

Vice President of Investor Relations

(720) 981-1185

Source: Vista Gold Corp.

FAQ

What recent payment did Vista Gold receive?

Vista Gold received the final $10 million installment under a royalty agreement with Wheaton Precious Metals.

What will the $10 million payment be used for in Vista Gold?

The $10 million payment will be used to advance the Mt Todd gold project and support general corporate purposes.

What conditions were met by Vista Gold for the final $10 million payment?

Vista Gold Australia had to start a designated drilling program at the Mt Todd project and meet other customary conditions.

When was the royalty agreement between Vista Gold and Wheaton Precious Metals signed?

The royalty agreement was signed on December 13, 2023.

Which project is being funded by the final installment payment to Vista Gold?

The Mt Todd gold project in Northern Territory, Australia.