Vista Gold Corp. Announces Third Quarter Financial Results



    DENVER, Nov. 9 /CNW/ -- Vista Gold Corp. (TSX & Amex:   VGZ) announced
today its financial results for the three and nine months ended September 30,
2007, as filed on November 9, 2007, with the US Securities and Exchange
Commission and with the relevant securities commissions in Canada in the
Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net
loss for the three-month period ended September 30, 2007 of US$2.2 million or
US$0.07 per share compared to a consolidated net loss of US$1.4 million or
US$0.05 per share for the same period in 2006.  The Corporation's consolidated
net loss for the nine-month period ended September 30, 2007 was US$6.2 million
or US$0.19 per share compared to a consolidated net loss of US$3.4 million or
US$0.14 per share for the same period in 2006.  For both the three and
nine-month periods, the increases in the consolidated losses of US$0.8 million
and US$2.8 million from the respective prior periods are primarily the result
of costs related to the completion on May 10, 2007, of the Arrangement
involving the Corporation, Allied Nevada Gold Corp. and Carl and Janet Pescio.
 The transaction resulted in the acquisition by Allied Nevada of the
Corporation's Nevada properties and the Nevada mineral assets of Carl and
Janet Pescio.  These costs amounted to US$0.5 million and US$2.9 million for
the respective periods.
    Cash used in operations was US$1.0 million for the three-month period
ended September 30, 2007, compared to US$1.1 million for the same period in
2006.  The decrease of US$0.1 million is the result of an increase in accounts
receivable of US$0.2 million, an increase in supplies inventory, prepaids and
other of US$0.8 million and an aggregate increase of non-cash items of US$0.3
million, partially offset by a decrease in accounts payable, accrued
liabilities and other expenses of US$0.3 million; and an increase in the
consolidated net loss of US$0.8 million.
    Cash used in operations was US$3.9 million for the nine-month period
ended September 30, 2007, compared to US$3.3 million for the same period in
2006. The increase of US$0.6 million is mostly the result of an increase in
the Corporation's net loss for the same 2006 period of US$2.8 million, which
is partially offset by an aggregate increase of non-cash items of US$2.2
million.
    Net cash used for investing activities increased to US$1.3 million for
the three-month period ended September 30, 2007 from US$1.0 million for the
same period in 2006.  The increase of US$0.3 million mostly reflects an
increase of US$0.3 million for additions to mineral properties.  The US$1.3
million invested for the three-month period ended September 30, 2007 was
mostly attributable to: the Corporation's Mt. Todd project in Australia --
US$0.8 million on an intensive exploration program with the objective of
confirming and better defining the resource base and to obtain samples for
metallurgical testing; the Corporation's Paredones Amarillos project in Mexico
and other projects -- US$0.5 million on pre-feasibility and pre-development
work and annual option payments.  As stated in the Corporation's recent press
release dated November 6, 2007, the Board approved the funding for the initial
development of the Paredones Amarillos project; management anticipates that
this will result in extensive investment in that property in the ensuing
months.
    Net cash used for investing activities increased to US$29.6 million for
the nine-month period ended September 30, 2007 from US$3.2 million for the
same period in 2006.  The increase of US$26.3 million mostly reflects the
US$24.5 million cash transferred to Allied Nevada in conjunction with the Plan
of Arrangement representing the Corporation's payment of US$25 million, less
US$0.5 million in loans repaid to the Corporation by Allied Nevada, pursuant
to the terms of the Arrangement Agreement.  In return for the payment and
transfer of assets to Allied Nevada, the Corporation received 26,933,055
shares of Allied Nevada, of which 25,403,207 shares were distributed to the
Corporation's shareholders and 1,529,848 shares are being retained by the
Corporation to facilitate the tax payments, if any, payable in respect of the
Arrangement.  Although management has been informed that based on latest tax
determinations the Corporation is not subject to a tax withholding requirement
with respect to any gain deemed realized on the distribution, the Corporation
will not know what its ultimate tax liability, if any, will be until its
corporate income tax returns are completed for the year ending December 31,
2007.  Of the remaining US$5.0 million invested in the nine-month period ended
September 30, 2007, US$4.6 million was spent on upgrading of mineral
properties.  The majority of the US$4.6 million was spent on:  Mt. Todd --
US$3.7 million on an extensive drilling program and other land costs,
Paredones Amarillos and other projects -- US$0.9 million on pre-development
work and pre-feasibility work.
    Net cash provided by financing activities increased to US$1.9 million for
the three-month period ended September 30, 2007, from US$1.1 million for the
same period in 2006.  Net cash provided by financing activities decreased to
US$3.4 million for the nine-month period ended September 30, 2007, from
US$26.4 million for the same period in 2006.  Warrants exercised during the
three-month period ended September 30, 2007 produced cash proceeds of US$1.4
million, as compared to US$0.8 million for the same period in 2006.  For the
three-month period, the increase relates to warrant exercises pertaining to
the September 2005 private placement warrants that expired on September 23,
2007.  Warrants exercised during the nine-month period ended September 30,
2007 produced cash proceeds of US$2.9 million, as compared to US$25.6 million
for the same period in 2006.  For the nine-month period, the decrease relates
to the acceleration in May 2006 of the expiry of the warrants issued in the
Corporation's February 2003 private placement and the warrants issued in the
Corporation's September 2004 private placement.
    Stock option exercises produced cash of US$0.5 million during the
three-month period ended September 30, 2007 as compared to US$0.3 million for
the same period in 2006.  Stock option exercises produced cash of US$0.5
million during the nine-month period ended September 30, 2007 as compared to
US$0.8 million for the same period in 2006.
    At September 30, 2007, the Corporation's total assets were US$55.7
million compared to US$92.7 million at December 31, 2006, representing a
decrease of US$37.0 million.  Part of this decrease of US$18.6 million was
attributed to the mineral properties transferred to Allied Nevada Gold Corp.;
the remaining decrease was primarily made up of the reduction in working
capital.  At September 30, 2007, the Corporation had working capital of
US$27.9 million compared to US$49.7 million at December 31, 2006, representing
a decrease of US$21.8 million.  This decrease relates to a decrease in cash
balances from year end due to the transfer of US$25 million to Allied Nevada
net of US$0.5 million in loans repaid to the Corporation by Allied Nevada
pursuant to the terms of the Arrangement Agreement.
    The principal component of working capital at both September 30, 2007 and
December 31, 2006, is cash and cash equivalents of US$18.6 million and US$48.7
million, respectively.  Other components include supplies inventory, prepaids
and other (September 30, 2007 -- US$0.5 million; December 31, 2006 -- US$0.3
million), marketable securities (September 30, 2007 -- US$9.0 million;
December 31, 2006 -- US$0.8 million) and accounts receivable (September 30,
2007 -- US$0.4 million; December 31, 2006 -- US$0.6 million).  Included in the
marketable securities at the end of September 30, 2007, is the value of US$7.6
million for the Allied Nevada Gold Corp. shares held by the Corporation.  At
September 30, 2007, the Corporation had no outstanding debt to banks or
financial institutions.
    The selected financial data including the results of operations for the
three-month and nine-month periods ended September 30, 2007 compared to the
same periods in 2006, and the financial position as at September 30, 2007
compared to December 31, 2006 is summarized in the following table:


    
    Selected Financial            Three Months Ended       Nine Months Ended
          Data                      September 30,           September 30,
                                   2007        2006        2007         2006
    U.S. $000's, except
     loss per share
    

    
    Results of operations
    Net loss                    $(2,200)    $(1,361)    $(6,204)     $(3,395)
    Basic and diluted loss
     per share                    (0.07)      (0.05)      (0.19)       (0.14)
    

    
    Net cash used in
     operations                    (956)     (1,113)     (3,922)      (3,259)
    Net cash used in
     investing activities        (1,301)       (960)    (29,588)      (3,239)
    Net cash provided by
     financing activities         1,902       1,082       3,414       26,372
    

    
    Financial position          September   December
                                   30,         31,
                                  2007        2006
    

    
    Current assets              $28,456     $50,430
    Total assets                 55,746      92,731
    Current liabilities             549         732
    Total liabilities               574       5,604
    Shareholders' equity         55,172      87,127
    

    
    Working capital              27,907      49,698
    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.
As gold prices have risen, Vista has completed various preliminary evaluations
that have demonstrated that some of the projects would be potentially viable
operations at current gold prices.  Vista is undertaking technical programs to
bring the most advanced projects to the point where decisions can be made to
put these projects into production, either by Vista, or through sale or joint
venture to other mining companies.  Vista's holdings include the Paredones
Amarillos and the Guadalupe de los Reyes Projects in Mexico, the Mt. Todd
Project in Australia, the Yellow Pine Project in Idaho, the Awak Mas Project
in Indonesia, the Long Valley Project in California, and the 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 applicable 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 results of drilling programs and prospects for exploration and confirmation
and definition of resources at the Mt. Todd project, potential development of
the Paredones Amarillos project including anticipated investments to be made
in the project, and timing for such investments, the performance of and
results of the planned bankable feasibility study for the Paredones Amarillos
Project, receipt of required environmental and other permits for the project,
timing for starting and completion of drilling and testing programs, 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 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; 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 the
securities commissions in Canada.  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 of Vista Gold Corp., 
+1-720-981-1185 Web Site: http://www.vistagold.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890