DENVER, Dec. 17, 2013 /PRNewswire/ -- Vista Gold Corp. (TSX & NYSE MKT: VGZ) ("Vista" or the "Company") today announced that it has closed the previously announced transaction (the "Transaction") to convert its interest in the Awak Mas gold project in Sulawesi, Indonesia (the "Awak Mas Project") into a net smelter return royalty on the project (the "Royalty").
Prior to the closing of the Transaction, the Awak Mas Project was indirectly held by the Company through a wholly owned subsidiary, Vista Gold ( Barbados) Corp. ("Vista Barbados") and was the subject of a 2009 joint venture agreement, as amended and assigned, and a 2011 additional option agreement, as amended and assigned, (together, the "Former Agreements") each between Vista Barbados and Awak Mas Holdings Pty Ltd. (the "Purchaser") (a wholly owned subsidiary of One Asia Resources Corp.). The Former Agreements provided the Purchaser with the option to acquire an 80% interest in the Awak Mas Project by completing certain activities.
As part of the Transaction, the Former Agreements were terminated and Vista transferred 100% of the outstanding shares of Vista Barbados to the Purchaser. In exchange, (a) the Purchaser agreed to forego certain cash payments due to have been paid by the Company had the Purchaser completed the earn-in of its interest in the Awak Mas Project, and (b) the Company received the Royalty (2% on the first 1.25 million ounces of gold production and 2.5% on the next 1.25 million ounces of gold production from the Awak Mas Project).
About Vista Gold Corp.Vista's principal assets include its flagship Mt. Todd gold project in Northern Territory, Australia, and a 24.9% holding in Midas Gold Corp. In addition to non-core projects in Mexico and California, Vista holds royalty interests in projects in Bolivia and Indonesia. For more information about our projects, including technical studies and resource estimates, please visit our website at www.vistagold.com.For further information, please contact Connie Martinez at (720) 981-1185, or visit the Company's website at www.vistagold.com. SOURCE Vista Gold Corp.