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Vista Gold Corp. (VGZ) Closes On Financing

Friday, Vista Gold Corp. reported that the company finalized and closed on a recent round of financing involving the private placement of securities to various institutional investment groups.

Vista Gold Corp. issued 14.66 million special warrants and received gross proceeds of $33.7 million. After the shareholders of Vista Gold Corp approve the private placement deal, the special warrants will be converted into one common share of the company, and one purchase warrant. The funds will be placed into escrow until the shareholder vote takes place.

Each purchase warrant has a term of five years and allows the holder to purchase one common share of Vista Gold Corp. at prices ranging from $3.50 to $5.00 per share, depending on when the warrants are exercised.

Vista Gold Corp. said that part of the proceeds from the financing would be used to repurchase $23 million principal value of senior secured convertible notes due in 2011. The company also plans to use the proceeds to develop the Mt. Todd gold project in Australia.

The Mt. Todd gold project is located in the Northern Territory, Australia, and Vista Gold Corp estimates that proven and probable gold reserves total two million ounces.

For more information on the company, go to

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