Vista Gold Corp. Announces Agreement to Purchase Gold Processing Equipment Mexico



    DENVER, Jan. 2 /CNW/ -- Vista Gold Corp. (TSX & Amex:    VGZ) is pleased to
announce that it has reached an agreement in principal with A.M. King
Industries, Inc. ("A.M. King") and Del Norte Company Ltd., a wholly owned
subsidiary of A.M. King, to purchase gold processing equipment to be used at
Vista's Paredones Amarillos gold project in Baja California Sur, Mexico. The
equipment includes a 10,000 tonne per day semi-autogenous (SAG) grinding mill,
two ball mills, gyratory crusher and a shorthead cone crusher, along with
other related components, spare parts, and other process plant equipment. The
purchase price of US$16,010,000 will be payable in three installments -- the
first payment of 50% of the purchase price (US$8,005,000) payable on signing
of the purchase agreement and the second and third payments (25%, or
US$4,002,500 each) payable based on an equipment delivery schedule with
respective parameters targeted to occur in February and March, 2008. The
purchase price includes the cost of relocating the equipment to Edmonton,
Alberta, Canada. From this point, Vista will arrange for reconditioning and
transportation of the equipment to the Paredones Amarillos mine site. The
equipment is presently located in northern Canada. Vista intends to purchase
the equipment through its wholly owned subsidiary, Minera Paredones Amarillos,
S.A. de C.V.
    The Company is also pleased to announce the appointment of Carlos
Calderon, Jr., as Vice President, Project Development, effective January 7. He
will also have the title and duties of General Manager and Legal
Representative for Minera Paredones Amarillos, S.A. de C.V. and will focus
primarily on the development of the Paredones Amarillos Project. Mr. Calderon
holds a M.Sc. degree in Mining Engineering from South Dakota School of Mines,
and over the past 36 years has managed exploration, construction and
operational projects in Latin America and the U.S., including serving as
General Manager for the Paredones Amarillos Project for the prior operator,
Echo Bay Mines until the project was put on hold when gold prices dropped in
1997.
    Fred Earnest, President and COO, commented, "This purchase is an
important milestone in the Company's goal to become a gold producer at the
earliest possible time. The decision to purchase this major portion of the
project's processing equipment re-affirms our earlier decision to place
Paredones Amarillos into production and to do it as soon as possible. In
addition to anticipated significant capital cost savings, we believe that the
purchase and planned comprehensive reconditioning of this used equipment will
save 12-18 months over the time required for the delivery of similar new
equipment, thus helping us meet our development schedule. The development of
the Paredones Amarillos Project is the first step in our plans to become a
mid-tier gold producer. We are also very pleased to welcome Carlos Calderon to
the Company. With his proven track record of building and operating mining
projects, especially in Latin America, and his prior experience at Paredones
Amarillos, we believe he will be a very important asset for the Company as
well as the Paredones Amarillos Project, and will be able to get up to speed
very quickly."
    
    About Vista Gold Corp.
    
    Since 2001, Vista has acquired a number of gold projects with the
expectation that higher gold prices would significantly increase their value.
Vista has recently completed a preliminary feasibility study on the Paredones
Amarillos Project in Mexico that indicated positive results at gold prices
lower than those now prevailing. Vista plans to confirm these results with a
definitive feasibility study in 2008. Vista is undertaking programs to advance
the Paredones Amarillos Project, including the purchase of long delivery
equipment items, so that construction can begin during the second half of
2008. The results of a preliminary assessment completed in 2007 on the Mt.
Todd Project in Australia were encouraging and additional technical studies
are underway with a definitive feasibility study planned for completion by
mid-2009. Vista's other holdings include the Guadalupe de los Reyes Project in
Mexico, Yellow Pine Project in Idaho, Awak Mas Project in Indonesia, Long
Valley Project in California, and Amayapampa Project in Bolivia.
    This press release contains forward-looking statements within the meaning
of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934
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 Vista
expects or anticipates will or may occur in the future, including such things
as potential development of the Paredones Amarillos project including
anticipated timing of commencement of construction of the project,
availability of funding for development of the Paredones Amarillos project and
estimates of cash costs and required capital investment for the project,
estimates of production life, rates of production and internal rates of return
if production is commenced at  the Paredones Amarillos project,  Vista's
future business strategy, competitive strengths, goals, operations, plans,
potential project development, future share price and valuation, future gold
prices, Vista's potential status as a producer, and other such matters are
forward-looking statements.  When used in this press release, the words
"estimate", "plan", "anticipate", "expect", "intend", "believe" and similar
expressions are intended to identify forward-looking statements.  These
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Vista to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.  Such factors
include, among others, risks relating to completion of the agreement
contemplated in this press release, delays and occurrence of additional costs
in connection with the condition of the equipment being purchased and costs
and time associated with reconditioning the equipment, ability to meet the
anticipated schedule for delivery of the equipment to Edmonton, Alberta,
Canada, the feasibility study underway at the Paredones Amarillos project;
uncertainty of feasibility study results and estimates on which such results
are based; risks relating to delays in commencement and completion of
construction at the Paredones Amarillos project;  risks of shortages of
equipment or supplies; risks of inability to achieve anticipated production
volume or manage cost increases; risks that Vista's acquisition, exploration
and property advancement efforts will not be successful; risks relating to
fluctuations in the price of gold; the inherently hazardous nature of
mining-related activities; uncertainties concerning reserve and resource
estimates; potential effects on Vista's 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 of being able to raise capital on
favorable terms or at all; and external risks relating to the economy and
credit markets in general; as well as those factors discussed in Vista's
latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other
documents filed with the U.S. Securities and Exchange Commission and Canadian
securities commissions.  Although Vista has attempted to identify important
factors that could cause actual results to differ materially from those
described in forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.  There can be no
assurance that such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in such
statements.  Vista assumes no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
    For further information, please contact Connie Martinez at (720)
981-1185, or visit the Vista Gold Corp. website at http://www.vistagold.com




For further information:

For further information: Connie Martinez, +1-720-981-1185, for Vista
Gold  Corp. Web Site: http://www.vistagold.com


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