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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 May 12, 1998 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: May 13, 1998 By: /s/Roger L. Smith
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Roger L. Smith
Vice President of Finance
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EXHIBIT INDEX
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Exhibit Description of Exhibit
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99.1 Press release dated May 12, 1998, stating that the
Company announces first quarter production
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EXHIBIT 99.1
VISTA ANNOUNCES RECORD FIRST QUARTER PRODUCTION
DENVER, COLORADO, MAY 12, 1998 - Vista Gold Corp. ("Vista") reported record gold
production of 35,017 ounces from the Hycroft mine for the quarter ended March
31, 1998, as compared to 30,135 for the same period in 1997. This included March
gold production of 16,379 ounces, which was a monthly production record for the
mine. Record gold production, together with measures taken in January 1998 to
control costs and improve cash flow, resulted in a cash operating cost per ounce
of $207 for the three months ended March 31, 1998, a decrease of $66, or 24
percent, from 1997.
In January 1998, the Company took steps to improve its cash flow and liquidated
its forward position in the gold futures market and made plans to temporarily
reduce mining activities at the Hycroft mine. The liquidation of the Company's
gold forward position generated $9.5 million in cash and $9.2 million in hedging
gains, of which $4.8 million have been deferred to subsequent periods.
The Company is pleased to report net earnings of $2.2 million, or $0.02 per
share, for the three months ended March 31, 1998 compared to a net loss of $0.7
million, or $0.01 per share, for the same period in 1997.
SUMMARY RESULTS
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THREE MONTHS ENDED
MARCH 31
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1998 1997
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(U.S. dollars in thousands, except share data)
Gold sales $ 10,971 $ 10,666
Net earnings (loss) 2,179 (691)
Cash provided by operating activities 11,347 1,128
Cash operating cost per ounce 207 273
Net earnings (loss) per share 0.02 (0.01)
Gold production (ounces) 35,017 30,135
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The increased gold production in the quarter resulted in part from higher than
expected grades and ore volumes in the Brimstone Pit. Taking into account these
positive factors, the Company continues to review its mining plans and has
deferred the suspension of ore extraction until August 1998 from the previously
scheduled May 1998 suspension. The impact of this change will be to increase
estimated production for 1998 to 105,000 ounces and gold production from
inventoried ore will continue through 1999 into 2000. Hycroft's engineers are
investigating the longer term implications of the favorable ore grade and ore
tonnage variances, including further extensions to the mine plan.
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Subsequent to March 31, 1998, Zamora Gold Corp. ("Zamora") announced it has
signed an agreement to acquire various property interests in Ecuador from a
major Ecuadorian mineral exploration company. Vista presently owns 48.7 percent
of the outstanding common shares of Zamora. As a condition of the transaction,
Zamora will issue 39.5 million common shares to the Ecuadorian company for the
acquisition of the property interests and an additional 6.5 million common
shares to Vista in settlement of debts owed by Zamora to Vista. After completing
the transaction, which is subject to regulatory and shareholder approvals, 25.5
percent of the outstanding common shares of Zamora will be held by Vista.
On May 6, 1998, the Company terminated the option agreement with L. B. Mining
Co. on the Guariche project in Venezuela because the economic terms are
unacceptable in today's gold market. The Company is continuing discussions with
L. B. Mining Co. to reach an agreement with terms consistent with current gold
prices.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado. Its holdings include the Hycroft mine in
Nevada, development projects in Bolivia and Venezuela, and exploration projects
in North and South America.
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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.
For further information, please contact Michael B. Richings, President and CEO
at (303) 629-2450 or (888) 629-2450.
