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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 June 2, 1997 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: June 2, 1997 By: /s/ A. J. Ali
---------------------------
A. J. Ali, CA
Vice President Finance and
Chief Financial Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description of Exhibit
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<S> <C>
99.1 Vista Gold Corp. First Quarter Report 1997--Letter to Shareholders
99.1a Vista Gold Corp. First Quarter Report 1997--Financial Statements
99.1b Vista Gold Corp. First Quarter Report 1997--Notes to Financial Statements
</TABLE>
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EXHIBIT 99.1
Dear Fellow Shareholders:
We achieved record production of 30,135 ounces of gold at the Hycroft mine in
the first quarter of 1997, an 86 percent increase over production of 16,206
ounces for the same period in 1996, and a 44 percent increase over the previous
five-year average for first quarter production. The Company reported a loss of
US$691,000 or $0.01 per share for the quarter compared to a net loss of
$1,966,000 or $0.04 per share for the same period in 1996.
The increased production was a result of the operation of the new leach pad and
Merrill-Crowe recovery plant for the Brimstone ore, expanded leach solution
pumping capacity at the Central Fault pad and higher grade ore from Cut 4. We
project 1997 full year gold production to be at least 115,000 ounces, a 29
percent increase over 1996 production. The direct cash operating costs for the
first quarter was $239 per ounce versus $283 for the first quarter 1996.
The increased production at Hycroft is one of several steps taken last year
towards our goal of becoming a mid-tier gold producer by the year 2000. Another
significant step was the commencement of drilling at our Guariche property in
Venezuela. After many months of waiting, the Company finally received the
necessary approvals to commence drilling. The Company acquired an option to
purchase the Guariche gold property last year. Vista anticipates that the
results of the drilling program will demonstrate a minimum of 500,000 ounces of
mineable reserves that, based on our prefeasibility study, could be developed
into a mine that will produce 75,000 ounces per year at an estimated cash cost
of $180 per ounce. Vista is planning to complete reserve, permitting and
feasibility studies in the next 12 months and to put the mine into production
by mid-1999. Drilling commenced the first week in April with initial results
expected soon.
I am pleased to report that we are currently in the final stages of completing
a bankable feasibility study on the Amayapampa mine in Bolivia. Major
advancements were made on the project during the quarter, including over 9,100
meters of confirmation drilling, successful negotiation of a surface rights
agreement, and a labor agreement at Amayapampa and at Capa Circa. We project
the final feasibility study to be available by the end of June and expect
project financing to be secured soon thereafter.
Vista is committed to an aggressive exploration program with over 25,000 meters
of drilling planned for the year. We have expanded our exploration activities
in Bolivia to include drilling at Amayapampa Norte, Copacabana and, in the
second half of this year, at the Capa Circa project. The Company's board of
directors agreed to purchase an additional 3 million shares of Zamora Gold
Corp. for Cdn$720,000 ($0.24 per share) through a private placement. The
proceeds from the private placement will be used to fund Zamora's exploration
efforts in Ecuador. Vista Gold now owns 49 percent of the outstanding shares of
Zamora Gold Corp.
These last few months have been difficult for investors of mining companies,
with both low gold prices and one of the largest mining scandals ever. Most, if
not all, mining companies' stock
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prices were punished in the market. The stock price for Vista was not an
exception. However, I believe that the market will now reward those mining
companies which have gold production, legitimate development projects, viable
exploration opportunities leading to real growth in mineable reserves and
professional management. Vista Gold Corp. is such a company.
OUTLOOK
We expect continued strong production at the Hycroft mine. We look forward to
the successful completion of the feasibility study on the Amayapampa project.
We anticipate positive results from the drilling at the Venezuelan Guariche
project. I firmly believe this has been a good start to a great year.
/s/ Michael B. Richings
- --------------------------------------
Michael B. Richings
President and Chief Executive Officer
May 19, 1997
The statements that are not historical facts are forward-looking statements
involving known and unknown risks and uncertainties that could cause actual
results to vary materially from the targeted results. Such risks and
uncertainties include those described in the Company's Form 20-F as amended.
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EXHIBIT 99.1a
VISTA GOLD CORP.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
<TABLE>
<CAPTION>
Three Months Ended
March 31
(US Dollars in Thousands, except share data) 1997 1996
- ---------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
REVENUE $ 11,371 $ 6,669
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EXPENSES
Operating costs 9,073 5,616
Depreciation, depletion and provision for
future reclamation and closure costs 1,748 1,114
Amortization of deferred stripping 814 --
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11,635 6,730
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RESULTS OF MINING OPERATIONS (264) (61)
=============== ===============
Mineral exploration and property evaluation 470 1,121
Corporate administrative 641 616
Interest income - net (18) (159)
Other expense (income) (123) 195
Gain on sale of mineral properties, equipment and investments (841) (141)
Equity in loss of Zamora Gold Corp. 298 320
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427 1,952
=============== ===============
EARNINGS (LOSS) BEFORE INCOME TAXES (691) (2,013)
CURRENT INCOME TAXES (RECOVERY) -- (47)
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NET EARNINGS (LOSS) $ (691) (1,966)
=============== ===============
EARNINGS (LOSS) PER SHARE $ (0.01) (0.04)
=============== ===============
WEIGHTED AVERAGE SHARES OUTSTANDING 89,020,405 46,108,515
=============== ===============
</TABLE>
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EXHIBIT 99.1a
CONSOLIDATED STATEMENTS OF
RETAINED EARNINGS (DEFICIT)
<TABLE>
<CAPTION>
Three Months Ended
March 31
(US Dollars in Thousands) 1997 1996
- -----------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
RETAINED EARNINGS (DEFICIT),
BEGINNING OF PERIOD (10,417) 1,409
NET EARNINGS (LOSS) (691) (1,966)
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DEFICIT, END OF PERIOD (11,108) (557)
========== ==========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
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EXHIBIT 99.1a
VISTA GOLD CORP.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31 December 31
(US Dollars in Thousands) 1997 1996
- ----------------------------------------------------------------------------------------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 11,063 $ 8,598
Marketable securities 179 213
Accounts receivable and other 5,381 3,286
Inventories 15,441 16,819
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32,064 28,916
Investment in Zamora Gold Corp. 2,683 2,981
Property, plant and equipment, net (Note 2) 94,975 91,419
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$ 129,722 $ 123,316
=========== ===========
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 6,496 $ 10,247
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6,496 10,247
Long-term debt (Note 3) 11,000 --
Provisions for future reclamation and closure costs 3,875 3,897
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21,371 14,144
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SHAREHOLDERS' EQUITY
Common shares without par value 120,745 120,745
(Issued 1997 and 1996 - 89,020,405 shares)
Retained earnings (deficit) (11,108) (10,417)
Currency translation adjustment (1,286) (1,156)
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108,351 109,172
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$ 129,722 $ 123,316
=========== ===========
</TABLE>
Commitments and contingencies (Note 4)
The accompanying notes are an integral part of these
consolidated financial statements.
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EXHIBIT 99.1a
VISTA GOLD CORP.
CONSOLIDATED STATEMENTS OF
CHANGES IN CASH RESOURCES
<TABLE>
<CAPTION>
Three Months Ended
March 31
(US Dollars in Thousands) 1997 1996
- ------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net earnings (loss) $ (691) $ (1,966)
Items not involving cash:
Depreciation, depletion and amortization 2,584 964
Provision for future reclamation and closure costs (22) 156
Gain on sale of mineral properties and investments (841) (141)
Equity in loss of Zamora Gold Corp. 298 320
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1,328 (667)
Currency translation adjustment (130) (345)
Change in working capital
excluding cash and cash equivalents (4,434) (2,861)
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(3,236) (3,873)
========== ==========
INVESTING ACTIVITIES
Property, plant and equipment (Note 2) (4,103) (2,227)
Deferred stripping (2,155) (505)
Proceeds from sale of mineral properties, equipment and investments 959 284
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(5,299) (2,448)
========== ==========
FINANCING ACTIVITIES
Issue of share-purchase options -- 208
Long-term financing (Note 3) 11,000 --
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11,000 208
========== ==========
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,465 (6,113)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 8,598 15,210
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 11,063 $ 9,097
========== ==========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
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EXHIBIT 99.1b
VISTA GOLD CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
(US Dollars in thousands unless specified otherwise - unaudited)
1. UNAUDITED INTERIM FINANCIAL INFORMATION
The consolidated financial statements of Vista Gold Corp. (the "Company") for
the three months ended March 31, 1997 have been prepared by the Company without
audit. In the opinion of management, all adjustments, consisting only of normal
recurring adjustments, necessary to fairly present the interim financial
information set forth herein have been made. The results of operations for
interim periods are not necessarily indicative of the operating results of a
full year or of future years.
2. PROPERTY, PLANT & EQUIPMENT
The investment in property, plant and equipment of $4.1 million during the
quarter ended March 31, 1997 included $2.9 million for final feasibility work
and drilling at the Amayapampa/Capa Circa project in Bolivia.
3. LONG-TERM DEBT
During the quarter ended March 31, 1997, the Company, through its subsidiary,
Hycroft Resources & Development, Inc., arranged a $13 million revolving credit
facility which bears interest at 1.5 percent above LIBOR. Withdrawals under the
credit facility are limited to 80 percent of recoverable gold inventory at the
Hycroft mine and are collateralized by the assets of Hycroft and a guarantee of
the parent company. The borrowings under the facility are repayable after two
years. The facility is renewable for two renewal periods of one year each. In
February 1997, the Company withdrew $11.0 million under the terms of the credit
facility.
4. COMMITMENTS AND CONTINGENCIES
A) The Company is committed to payments under certain operating leases for
mining equipment. Future payments under these leases in each of the next five
years and in the aggregate are as follows:
<TABLE>
<S> <C>
1997 1,498
1998 1,055
1999 --
2000 --
2001 --
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$2,553
=========
</TABLE>
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Letters of credit totalling $0.9 million (1996 - $2.8 million) have been
provided as security under these mine equipment operating leases.
B) As part of its gold hedging program, the Company has entered into agreements
with major financial institutions to deliver gold. Realization under these
agreements is dependent upon the ability of those financial institutions to
perform in accordance with the terms of the agreements. As of March 31, 1997,
the Company's consolidated hedging program consisted of matching option
contracts for 16,000 ounces of gold under which the Company can require the
financial institution to buy gold at $350 per ounce, while the financial
institution can require the Company to sell an equivalent number of ounces at
$380 per ounce. These options have various expiry dates during 1997 and 1998
and result in no net cost to the Company.
