<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
OCTOBER 14, 1999
Date of report (Date of earliest event reported)
VISTA GOLD CORP.
(Exact Name of Registrant as Specified in Its Charter)
YUKON TERRITORY, CANADA
(State or Other Jurisdiction of Incorporation)
1-9025 NOT APPLICABLE.
(Commission File Number) (IRS Employer Identification No.)
370 Seventeenth Street, Suite 3000,
Denver, CO USA 80202
(Address of Principal Executive Offices) (Zip Code)
(303) 629-2450
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE.
(Former Name or Former Address, if Changed Since Last Report)
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VISTA GOLD CORP.
ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not applicable.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Not applicable.
ITEM 5. OTHER EVENTS.
PRESS RELEASE DATED OCTOBER 14, 1999 ANNOUNCING THIRD QUARTER
PRODUCTION.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of businesses acquired:
Not applicable.
(b) PRO FORMA financial information:
Not applicable.
(c) Exhibits
20.1 Press Release dated October 14, 1999 announcing third
quarter production.
ITEM 8. CHANGE IN FISCAL YEAR.
Not applicable.
ITEM 9. SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S.
Not applicable.
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SIGNATURES
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 hereunto duly authorized.
VISTA GOLD CORP.
(Registrant)
Date: October 14, 1999 By: /s/ Roger L. Smith
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Roger L. Smith
Vice President Finance
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EXHIBIT INDEX
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EXHIBIT NO. PAGE NO.
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20.1 Press release dated October 14, 1999
announcing third quarter production. 6
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[LETTERHEAD]
Trading Symbol: VGZ
Toronto and American Stock Exchanges
______________________________________________________________NEWS _________
VISTA ANNOUNCES THIRD QUARTER PRODUCTION
DENVER, COLORADO, OCTOBER 14, 1999 -- Vista Gold Corp. announced today that
its third quarter of 1999 consolidated gold production was 16,567 ounces and
consisted of 8,065 ounces from the Hycroft mine and 8,502 ounces from the
Mineral Ridge mine. As of September 30, 1999, Vista's consolidated gold
production for the year was 53,839 ounces and the Corporation currently
estimates its 1999 total gold production to be approximately 70,000 ounces.
At the Mineral Ridge mine, crusher production improved in the third quarter
to an average of 100,000 tons per month, which is in line with the
Corporation's projections despite reducing the crusher product size to
improve gold recoveries. As a result, gold production improved at the same
time, and September's production was in excess of 3,500 ounces of gold. The
Corporation estimates gold production will continue to improve and average
more than 4,000 ounces per month during the fourth quarter of 1999. Costs in
all areas have been in line with or lower than original estimates, and the
Corporation believes that its original average production cost estimate of
$226 per ounce will be achieved over the life of the project.
Vista owns the Mineral Ridge mine through its subsidiary Mineral Ridge
Resources, Inc. ("MRRI"). MRRI has a loan agreement with Dresdner Bank AG,
New York Branch, which was amended at the time of Vista's acquisition of
MRRI. The loan agreement is not guaranteed by the Corporation and there is
no recourse by the lender to the Corporation for any of MRRI's obligations
thereunder. The amended agreement called for the contribution of US$5.0
million of mining equipment to the project by Vista and the distribution of
net cash flow on the basis of 70 percent to Dresdner Bank and 30 percent to
Vista after deduction of US$800,000 of management fees payable to Vista over
the next two years.
Under the loan agreement, MRRI is required to maintain a hedging program
pursuant to a separate hedging agreement covering the lesser of 70 percent of
MRRI's projected salable ounces of gold, or 100,000 ounces. In this regard,
as of September 30, 1999, MRRI had forward sales contracts totaling 100,000
ounces under which MRRI is required to deliver gold at an average price of
$307 per ounce. The forward sales contracts have various expiration dates
and can be rolled forward to defer the ultimate delivery date. Neither the
Corporation nor MRRI has any puts or calls in place at the present time.
The hedging agreement includes, among other things, a credit support
agreement, which specifies a credit support threshold of US$7,000,000, which
is the amount that the bank's exposure must exceed before a demand for
eligible collateral (usually cash) can be made. Under current circumstances,
gold prices would have to exceed approximately $380 per ounce before
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the secured party could make a demand for eligible collateral. Vista Gold
Corp. is not a party to the hedging agreement and is not otherwise liable for
the obligations of MRRI thereunder.
At the Hycroft mine, where gold production continues from heap-leach
inventory, Vista is evaluating a restart of operations. A feasibility study,
undertaken with the assistance of outside consultants, is planned for
completion in the fourth quarter. The Corporation's initial studies indicate
the potential for the addition of 700,000 ounces of reserves and the
production of 70,000 ounces per year at an estimated cash cost of $225 to
$230 per ounce.
Together with a major international bank, the Corporation has restarted
financing activities for the development and construction of the Amayapampa
project in Bolivia. The project has 548,000 ounces of proven and probable
gold reserves, and the designed production rate is 43,000 ounces per year at
an average cash cost of $157 per ounce. The capital cost is estimated to be
$26 million. Vista is planning to start construction in early 2000 and to
commence production 12 months later.
Vista Gold Corp. is an international gold mining, development and exploration
company based in Denver, Colorado. Its holdings include the Hycroft and
Mineral Ridge mines in Nevada, development properties in Bolivia 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 10-K as amended.
For further information, please contact Investor Relations at (303) 629-2450.
