Vista Gold Corp. Announces Second Quarter Financial Results



    DENVER, Aug. 8 /CNW/ -- Vista Gold Corp. (Amex:   VGZ; TSX) announced today
its financial results for the quarter and six months ended June 30, 2008, as
filed on August 8, 2008, with the US Securities and Exchange Commission and
the relevant securities commissions in Canada in the Corporation's Quarterly
Report on Form 10-Q.  Our consolidated net loss for the three-month period
ended June 30, 2008, was US$2.2 million or US$0.06 per share compared to a
consolidated net loss of US$3.2 million or US$0.10 per share for the same
period in 2007.  Our consolidated net loss for the six-month period ended June
30, 2008, was US$4.1 million or US$0.12 per share, which was approximately
level with the consolidated net loss of US$4.0 million or US$0.13 per share
for the same period in 2007.  For the three-month period, the decrease in the
consolidated loss of US$1.0 million from the respective prior period is
primarily due to a decrease in costs of US$2.4 million related to the
completion in May 2007 of the Plan of Arrangement involving Vista, Allied
Nevada Gold Corp. ("Allied Nevada") and the Pescios, which is partially offset
by an increase in interest expense of US$585,000, an increase in fees
associated with the disposal of our Amayapampa project of US$132,000, an
increase in corporate administration and investor relations costs of
US$336,000, an increase in the loss on disposal of marketable securities of
US$88,000 and a decrease in interest income of US$171,000.  The slight
increase in the consolidated net loss of US$74,000 for the six-month period
from the prior year period is largely due to an increase in corporate
administration and investor relations costs of US$905,000, an increase in
interest expense of US$769,000 paid on our outstanding US$30 million aggregate
principal amount of convertible notes (the "Notes"), an increase in the loss
on disposal of marketable securities of US$207,000, an increase in fees
associated with the disposal of our Amayapampa Project of US$132,000 and a
decrease in interest income of US$478,000.  These amounts are offset by the
decrease in costs related to the Plan of Arrangement of US$2.4 million, as
noted above.
    At June 30, 2008, our total assets were US$80.9 million compared to
US$51.3 million at December 31, 2007, representing an increase of US$29.6
million. This increase from the end of the year relates primarily to an
increase of cash of US$6.5 million, an increase of plant and equipment for the
purchase of US$16 million at Paredones Amarillos and an increase of US$6.5
million for mineral properties.  At June 30, 2008, we had working capital of
US$33.4 million compared to US$27.3 million at December 31, 2007, representing
an increase of US$6.1 million.  These increases relate primarily to an
increase in cash balances from year end as a result of the completion in March
2008 of the brokered private placement of the Notes as discussed below.
    The principal component of working capital at both June 30, 2008 and
December 31, 2007, is cash and cash equivalents of US$23.2 million and US$16.7
million, respectively.  Other components include marketable securities (June
30, 2008 -- US$10.2 million; December 31, 2007 -- US$10.9 million) and other
liquid assets (June 30, 2008 -- US$1.1 million; December 31, 2007 --
US$380,000).
    As previously reported, on March 4, 2008, we completed a private
placement in which we issued and sold US$30 million in aggregate principal
amount of the Notes.  The Notes mature at face value on March 4, 2011 (the
"Maturity Date"). The Notes pay interest of 10% per annum, payable
semi-annually on June 15 and December 15.  The Notes are convertible at the
holder's or issuer's discretion in accordance with the terms of the Notes. 
The holder can convert all or part of the debt at any time prior to the
Maturity Date or the business day immediately preceding the Redemption Date at
a price of US$6.00 per common share, subject to adjustment in certain
circumstances.  The Redemption Date represents the date that the Notes will be
redeemed in the event that we redeem the Notes.
    We used approximately US$16.0 million of the proceeds from the sale of
the Notes for advance payments towards the purchase of gold processing
equipment to be used at our Paredones Amarillos Project.  The remaining
balance of the funds raised from the private placement will be used on capital
expenditures for the development of the Paredones Amarillos Project.
    Net cash used in operating activities was US$2.1 million for the
three-month period ended June 30, 2008, compared to US$1.8 million for the
same period in 2007.  The increase of US$318,000 is the result of an interest
payment of US$842,000 made on June 15, 2008 for the Notes and a decrease of
non-cash items of US$1.2 million which is offset by a decrease in the loss for
the period from continuing operations of US$958,000 and a decrease in cash
used for accounts payable, accrued liabilities and other of US$757,000.
    Net cash used in operating activities was US$3.3 million for the
six-month period ended June 30, 2008, compared to US$2.7 million for the same
period in 2007.  The increase of US$573,000 is mostly the result of the
interest payment of US$842,000 noted above, which is partially offset by a
decrease in cash used for receivables of US$310,000.
    Net cash used in investing activities decreased to US$3.2 million for the
three-month period ended June 30, 2008, from US$26.3 million for the same
period in 2007.  The decrease of US$23.1 million mostly reflects the US$24.4
million cash transferred to Allied Nevada in conjunction with the completion
of the Plan of Arrangement in May 2007, which was partially offset by the
following:

    
    -- An increase in the additions to mineral properties of US$682,000, which
       is mostly the result of an increase in expenditures at the Paredones
       Amarillos Project as we move towards a production decision.
    -- An increase of US$350,000 for a loan made to Republic Gold Limited
       ("Republic") in conjunction with the disposal of the Amayapampa
       project, this loan is due and payable on the release of a bankable
       feasibility study or September 30, 2008 which ever occurs first.
    -- An increase in the additions to plant and equipment of US$269,000,
       which is mostly the result of an increase in equipment purchases at the
       Paredones Amarillos Project and the Mt. Todd Project.
    
    Net cash used for investing activities decreased to US$21.3 million for
the six-month period ended June 30, 2008, from US$28.2 million for the same
period in 2007.  The decrease of US$6.9 million is mostly the result of a
decrease of US$24.4 million in the cash transferred to Allied Nevada as noted
above, which has been offset by the following:

    
    -- An increase in additions to plant and equipment of US$16.3 million.  In
       April 2008, we finalized the US$16 million purchase of gold processing
       equipment to be used on our Paredones Amarillos Project.  There were no
       similar purchases during the 2007 period.
    -- An increase in the acquisition of mineral properties of US$452,000.  On
       January 24, 2008, we completed the acquisition of interests in various
       mineral properties adjacent to our Guadalupe de los Reyes Project in
       Mexico.  The consideration paid by Vista for the acquisition of these
       interests included cash payments totaling US$452,000 and the issuance
       of a total of 213,503 common shares of Vista (with an aggregate fair
       value of US$1.0 million) to various parties.
    -- An increase in the additions to mineral properties of US$264,000.
    -- An increase of US$350,000 for a loan made to Republic in connection
       with the disposal of the Amayapampa Project, as noted above.
    
    Net cash used in financing activities was US$144,000 for the three-month
period ended June 30, 2008, as compared to net cash provided by financing
activities of US$250,000 for the same period in 2007.  During the three-month
period ended June 30, 2008 cash was used in financing activities, reflecting
the payment of additional debt issuance costs resulting from the completion of
the brokered private placement of the Notes during the first quarter. For the
same period in 2007, cash was provided by financing activities due to proceeds
received from the exercise of warrants.
    Net cash provided by financing activities was US$31.4 million for the
six-month period ended June 30, 2008, as compared to US$1.5 million for the
same period in 2007.  This increase is primarily the result of the completion
of the brokered private placement of the Notes, having an aggregate principal
amount of US$30.0 million. Proceeds to Vista after legal and other fees were
US$28.4 million.  There were no similar transactions during the 2007 period.
    There were no warrant exercises during the three-month period ended June
30, 2008 as compared to US$250,000 for the same period in 2007.  Warrant
exercises during the six-month period ended June 30, 2008 produced cash
proceeds of US$2.9 million as compared to US$1.5 million for the same period
in 2007.
    The selected financial data including the results of operations for the
three-month and six-month periods ended June 30, 2008 compared to the 2007
periods, and the financial positions as at June 30, 2008 compared to December
31, 2007, is summarized in the following table:



    
    Selected Financial Data             Three Months Ended   Six Months Ended
                                              June 30,            June 30,
                                          2008      2007      2008      2007
    U.S. $000's, except loss per share
    

    
    Results of operations
    Net loss                           $(2,227)  $(3,228)   $(4,078)  $(4,004)
    Basic and diluted loss per share     (0.06)    (0.10)     (0.12)    (0.13)
    

    
    Net cash used in operations         (2,073)   (1,755)    (3,279)   (2,706)
    Net cash used in investing
     activities                         (3,195)  (26,289)   (21,308)  (28,225)
    Net cash provided by financing
     activities                           (144)      250     31,400     1,512
    



    
    Financial position                 June 30,  December 31,
                                         2008      2007
    

    
    Current assets                     $34,521   $27,948
    Total assets                        80,896    51,346
    Current liabilities                  1,140       694
    Total liabilities                   23,555       694
    Shareholders' equity                57,341    50,652
    

    
    Working capital                     33,381    27,254
    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.
For more information about our projects, including technical studies and
resource estimates, please visit our website at http://www.vistagold.com.
Vista is undertaking programs to advance the Paredones Amarillos Project,
including the preparation of a definitive feasibility study and the purchase
of long delivery equipment items, so that construction can begin during the
last quarter 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, the Yellow Pine Project in Idaho, the Awak Mas
Project in Indonesia, and the Long Valley Project in California.
    
    Forward-Looking Statements
    
    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 financial and operating results and estimates; potential funding
requirements and sources of capital; the timing, performance and results of
feasibility studies including the ongoing bankable feasibility study for the
Paredones Amarillos Project; timing and receipt of required land use,
environmental and other permits for the Paredones Amarillos Project and timing
for starting and completion of drilling and testing programs at the Paredones
Amarillos Project; plans to confirm the validity of the Change of Land Use
Permit for the Paredones Amarillos Project and timing for confirmation of the
status of this permit , and timing and outcome for alternative application for
an interim Change of Land Use Permit for the drilling program and a new Change
of Land Use Permit for the Project; capital and operating estimates for the
Paredones Amarillos Project and anticipated timing of commencement of
construction and commencement of production at the Project; plans for
evaluation of the Mt. Todd Project including estimates of silver, copper and
gold resources; preliminary assessment results; results of drilling programs
and prospects for exploration and conversion of resources at the Mt. Todd
Project and plans for a feasibility study at the Mt. Todd Project; potential
for gold production at the Amayapampa gold project and timing for commencement
of production and timing and receipt of future payments in connection with the
disposal of the Amayapampa gold project; ongoing debt service requirements for
our outstanding convertible notes and potential redemption or conversion of
the notes; future gold prices; Vista's future business strategy; competitive
strengths; goals; operations; reserve and resource estimates; plans; potential
project development; future share price and valuation; Vista's potential
status as a producer including plans, timing and targeted initial production
levels; and other such matters are forward-looking statements and
forward-looking information.  When used in this press release, the words
"estimate", "plan", "anticipate", "expect", "intend", "believe", "will" 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 Vista to be materially different from any
future results, performance or achievements expressed or implied by such
statements.  Such factors include, among others, risks relating to delays and
incurrence of additional costs in connection with the feasibility study
underway at our Paredones Amarillos Project, including uncertainty relating to
timing and receipt for required governmental permits; uncertainty relating to
timing and receipt for confirmation of the validity of the Change of Land Use
Permit for the Paredones Amarillos Project, uncertainty relating to timing and
outcome of alternative application process for an interim Change of Land Use
Permit for the drilling program and a new Change of Land Use Permit for the
Paredones Amarillos Project; uncertainty relating to timing and outcome for
application for Temporary Occupation Permit for mining activities at the
Paredones Amarillos Project; uncertainty of feasibility study results and
preliminary assessments and of estimates on which such results are based;
risks relating to delays in commencement and completion of construction at the
Paredones Amarillos Project and Mt. Todd Project; uncertainty relating to
potential for gold production at the Amayapampa gold project and timing for
commencement of production and timing and receipt of future payments in
connection with the disposal of the Amayapampa gold project; risks of
significant cost increases; risks of shortages of equipment or supplies; 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; risks related to
repayment of debt; risks related to increased leverage; and uncertainty of
being able to raise capital on favorable terms or at all; 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 and
forward-looking information, 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. Except as
required by law, Vista assumes no obligation to publicly update any
forward-looking statements or forward-looking information, 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 of Vista Gold Corp.,
+1-720-981-1185 Web Site: http://www.vistagold.com


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