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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the period of December 23, 1996 Commission File Number: 1-9025
VISTA GOLD CORP.
(Name of Registrant)
Suite 3000
370 Seventeenth Street
Denver, Colorado 80202
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not applicable.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VISTA GOLD CORP.
Date: January 2, 1997 By: /s/ KARLA J. KIMREY
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Karla J. Kimrey
Director of Investor Relations
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EXHIBIT INDEX
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Exhibit Description of Exhibit
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99.1 Press release dated December 20, 1996, stating that the Company was informed
by the Bolivian government that officials sent the police into the mines at
Capa Circa and Amayapampa to restore law and order after the illegal
occupation of the mines was instigated by a small group of dissident miners.
99.2 Press release dated December 23, 1996, stating that the Company announced the
resolution of the Bolivian conflict. Representatives of the Bolivian
government informed the Company this morning that the conflict at the
Amayapampa and Capa Circa mines has been resolved. Members of the miner's
group and representatives of the Bolivian government signed an agreement for
the peaceful return of the mines to Vista Gold Corp.
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EXHIBIT 99.1
CAPA CIRCA/AMAYAPAMPA BOLIVIA PROJECTS - UPDATE
DENVER, COLORADO, DECEMBER 20, 1996 - Early this morning the Company was
informed by the Bolivian government that officials sent the police into the
mines at Capa Circa and Amayapampa to restore law and order after the illegal
occupation of the mines was instigated by a small group of dissident miners.
Communication with government security indicates that 13 people were injured
and 3 people killed as a result of this action. The Company deeply regrets the
loss of life.
The government took this action after the breakdown of extensive negotiations
between the lawless faction of miners, the Company, and the Bolivian
government. The purpose of the negotiations was to establish a peaceful method
to appropriately turn over control of the Capa Circa mine to Vista Gold Corp.,
the rightful owner. A small band of miners had illegally occupied the Capa
Circa mine. Tuesday, while negotiations were taking place, these miners
instigated an occupation at the neighboring Amayapampa mine compound.
Despite efforts by some miners to portray this illegal seizure as a broader
issue involving indigenous people's rights, the leaders of the two local Indian
groups (the Chayantaka and the Jucumanis) have come out firmly in support of
the Company's position and were not involved in the occupation of the
Amayapampa mine.
The Bolivian government has demonstrated a desire for quality foreign companies
to engage in business in its country. The country's officials have expressed
their desire for lawful operation of these mines and the necessity to restore
rightful ownership of the properties to Vista. The Company is in communication
with representatives of the government.
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EXHIBIT 99.2
BOLIVIAN CONFLICT RESOLVED
DENVER, COLORADO, DECEMBER 23, 1996 - Representatives of the Bolivian
government informed the Company this morning that the conflict at the
Amayapampa and Capa Circa mines has been resolved. Members of the miner's
group and representatives of the Bolivian government signed an agreement for
the peaceful return of the mines to Vista Gold Corp. The agreement is
effective immediately, and to ensure its enforcement, the government will
initially maintain an increased level of police activity in the area.
The conflict, which began last Thursday, resulted from the occupation of the
properties by a group of lawless miners. The government sent in police to
restore law and order in the area.
While Vista Gold is saddened by the violence that occurred in the conflict, the
Company appreciates the prompt action by the government. This action was only
necessary after government officials and the Company made many attempts to
resolve the matter peacefully, and a small group of criminals showed complete
disregard of the law. "Investors are quite rightly concerned for their
investments in developing countries; in this case the government has
demonstrated its determination to protect the assets of foreign investors and
maintain law and order," said Michael B. Richings, President and CEO of Vista
Gold Corp. "This is a clear message by the government that they want foreign
investment and the benefits it can bring to improve the quality of life for all
its citizens."
The Amayapampa and Capa Circa mines, located approximately 120 miles (300
kilometers) southeast of La Paz, were acquired by the Company as a result of a
November 1, 1996 merger between Granges Inc. and Da Capo Resources. Vista Gold
is currently undertaking technical studies to determine the best development
plan for the Amayapampa and Capa Circa mines, which are 14 kilometers apart. A
preliminary study indicates that a combined facility would produce 100,000
ounces of gold per year in 1999 for a $65 million investment.
Shortly after the acquisition of the Amayapampa mine, Vista closed down
existing mining operations because the operation was unsafe and gold tailings
were polluting the villager's land and water. Vista has continued to pay the
miners for work on exploration and development activities as well as
infrastructure improvements in their village. These improvements include
enhancements in their roads, schools, medical facilities and church. Upon the
completion of the feasibility study on the project, construction of a new,
modern environmentally safe mine will begin; and production from that mine is
expected approximately 12 months later. The bankable feasibility study
scheduled for completion at the end of April 1997 may be slightly delayed.
Similar environmental, socio-economic and technical studies at Capa Circa, as
well as drilling and development work will commence at Capa Circa in the new
year so reserves can be estimated and the appropriate mining method designed.
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The Company anticipates the construction of the Amayapampa mine to begin in
June 1997 with production to commence June 1998. Production from the Capa
Circa mine is expected to begin approximately one year later.
These two mining operations are projected to increase Vista's total gold
production rate from approximately 100,000 ounces per year from its Hycroft
mine in Nevada to approximately 200,000 ounces per year in 1998. As a result,
the company expects the cash cost to be reduced from $285/oz. in 1996 to
$200/oz.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado, with its registered office in Vancouver,
British Columbia. Its holdings range from the Hycroft Mine in Nevada to
development and exploration projects in North America and South America
including Ecuador, Bolivia, Venezuela and Peru.
