Vista Gold Corp. Reports Third Quarter 2020 Cash plus Short-Term Investments of $10.2 Million and Provides an Update on Mt Todd
__________________ NEWS _________________
Vista Gold Corp. Reports Third Quarter 2020 Cash plus Short-Term Investments of $10.2 Million
and Provides an Update on Mt Todd
Denver, Colorado, October 28, 2020 – Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today reported its unaudited financial results for the quarter ended September 30, 2020 and provided
an update on the Company’s 100% owned Mt Todd gold project (“Mt Todd” or the “Project”) located in the Tier 1
mining jurisdiction of Northern Territory, Australia. Vista’s third quarter net income was $4.2 million or $0.05 per
share, and cash plus short-term investments totaled $10.2 million.
Frederick H. Earnest, President and Chief Executive Officer of Vista, stated, “We are extremely pleased with our third
quarter financial results. We believe our strong balance sheet provides a solid foundation as we continue to
methodically advance and de-risk the world-class Mt Todd gold project and seek a strategic partner.”
With respect to exploration activities at Mt Todd, Mr. Earnest continued, “We believe that the higher-grade core
zone of the Batman deposit could extend to the north. We have commenced a proof of concept drilling program to
test targets known as the Batman north extension and hanging wall lodes. We are excited about the potential
represented by these targets. Should the drill results confirm an extension of the structures and mineralization that
form the Batman deposit, ongoing work could ultimately lead to future changes to the mine design, with the
combined benefits of better grade and lower stripping.” Vista CEO Video.
Recent Developments
Commenced a drilling program with the goal of confirming the existence of higher-grade, near surface
mineralization immediately adjacent to the planned Batman pit – assay results from the first holes are expected
in the next weeks with full program results continuing as the program progresses;
Completed geotechnical field work for crusher and ball mill foundation designs that is expected to shorten the
time required to complete a future feasibility study, reduce related initial capital cost estimates, and support
detailed engineering; and
Continued dewatering the Batman pit and lowered the water level by 17.8 meters, with approximately 2.1
gigalitres (“GL”) remaining. The Batman pit is expected to be effectively dewatered by mid-2021,
representing an important milestone to be completed prior to a potential start of construction.
Mr. Earnest added, “Dewatering the Batman pit will mark the completion of a program to treat over 11 GL of acidic
mine waste rock drainage and subsequently discharge that volume as clean water. The protocols developed at Mt Todd
have been recommended to other mining companies by the Northern Territory Environmental Protection Agency. We
are proud of the success achieved to-date. This program exemplifies our commitment to environmental stewardship.
It has been one of the cornerstone activities that has cemented the excellent relationship we enjoy with the local project
stakeholders and communities.”
7961 Shaffer Parkway
Suite 5
Littleton, CO 80127
Phone: 720-981-1185 Trading Symbol: VGZ
NYSE American and TSX Stock Exchanges
Summary of Third Quarter 2020 Financial Results
At September 30, 2020, cash plus short-term investments (comprised of government securities) totaled $10.2 million
and working capital was $9.9 million. We expect our current cash position to be further strengthened by up to $4.6
million from upcoming cash payments of $2.1 million from Prime Mining Corp. (“Prime Mining”) and an option
payment of $2.5 million from the cancelation of the Company’s royalty on the Awak Mas project. The Company has
no debt.
Vista reported net income of $4.2 million, or $0.05 per share for the three months ended September 30, 2020. The
Company benefited from a gain of $3.5 million associated with the final Guadalupe de los Reyes (“Los Reyes”)
purchase price payment and transfer of Los Reyes to Prime Mining and a gain of $2.4 million from sales of other
investments.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset is the Mt Todd gold project in the Tier 1 jurisdiction
of Northern Territory, Australia. Mt Todd is the largest undeveloped gold project in Australia and, if developed as
presently designed, would potentially be Australia’s 6th largest gold producer on an annual basis.
Management Conference Call
Management’s quarterly conference call to discuss these results is scheduled for 10:00 a.m. MDT on October 29,
2020. Management’s Discussion and Analysis together with other important disclosures are available in the
Company’s Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission and the
Canadian securities regulatory authorities.
Participant Toll Free: 800-367-2403
Participant International: 334-777-6978
Conference ID: 7545208
This call will also be archived and available at www.vistagold.com after October 29, 2020. Audio replay will be
available for 21 days by calling toll-free in North America 888-203-1112 with passcode 7545208.
If you are unable to access the audio or phone-in on the day of the conference call, please email your questions to
All dollar amounts in this press release are in U.S. dollars.
For further information, please contact Pamela Solly, Vice President of Investor Relations, at (720) 981-1185.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities
Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws. All statements, other
than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate
will or may occur in the future, including such things as the expected date for our management’s call regarding our financial results; our belief
that the higher-grade core zone of the Batman deposit could extend to the north; that ongoing work on the Batman deposit could ultimately
lead to future changes to the mine design, with the combined benefits of better grade and lower stripping; that assay results from the first holes
drilled adjacent to the Batman pit are expected in the next weeks; that the results of geotechnical field work is expected to shorten the time
required to complete a future feasibility study, reduce related initial capital cost estimates, and support detailed engineering; that the Batman
pit is expected to be effectively dewatered by mid-2021; our expectation to receive upcoming cash payments from Prime Mining and from the
cancelation of the Company’s royalties on the Awak Mas project; our plans to continue to advance the process of seeking a partner for the
construction and development of Mt Todd; our plans to continue to efficiently optimize and advance Mt Todd; and our belief that Mt Todd is
the largest undeveloped gold project in Australia, and if developed, that it would be Australia’s 6th largest gold producer on an annual basis
are forward-looking statements and forward-looking information. The material factors and assumptions used to develop the forward-looking
statements and forward-looking information contained in this press release include the following: our forecasts and expected cash flows; our
projected capital and operating costs; our expectations regarding mining and metallurgical recoveries; mine life and production rates; that laws
or regulations impacting mine development or mining activities will remain consistent; our approved business plans, our mineral resource and
reserve estimates and results of preliminary economic assessments; preliminary feasibility studies and feasibility studies on our projects, if
any; our experience with regulators; our experience and knowledge of the Australian mining industry and our expectations of economic
conditions and the price of gold. When used in this press release, the words “optimistic,” “potential,” “indicate,” “expect,” “intend,” “hopes,”
“believe,” “may,” “will,” “if,” “anticipate, ” and similar expressions are intended to identify forward-looking statements and forward-looking
information. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or
implied by such statements. Such factors include, among others, uncertainty of resource and reserve estimates, uncertainty as to the Company’s
future operating costs and ability to raise capital; risks relating to cost increases for capital and operating costs; risks of shortages and
fluctuating costs of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related
activities; potential effects on our operations of environmental regulations in the countries in which it operates; risks due to legal proceedings;
risks relating to political and economic instability in certain countries in which it operates; uncertainty as to the results of bulk metallurgical
test work; uncertainty as to completion of critical milestones for Mt Todd; and uncertainty as to the impact of the ongoing global health crisis
caused by the COVID-19 pandemic; as well as those factors discussed under the headings “Note Regarding Forward-Looking Statements”
and “Risk Factors” in the Company’s latest Annual Report on Form 10-K as filed in February 2020 and other documents filed with the U.S.
Securities and Exchange Commission and Canadian securities regulatory authorities. Although we have attempted to identify important
factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information,
there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, we assume no obligation
to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future events or
otherwise.