Proceeds for 10% senior notes repurchase, Mt. Todd Project advancement
By Marisa Wong
Madison, Wis., Oct. 22 - Vista Gold Corp. said it closed its previously announced upsized and oversubscribed private placement of special warrants to raise $33.73 million.
The deal originally priced Sept. 30 for $30 million and was increased to $33.76 million on Oct. 12.
The company issued 14,666,739 special warrants, which will each automatically be exercised for one common share and one common share purchase warrant upon shareholder approval at a shareholders' meeting to be held by the end of 2010.
As previously reported, the warrants were sold at $2.30 each. Each warrant will be exercisable for five years from closing of the placement to purchase one common share at $3.50 per share during the first year, $4.00 in the second year, $4.50 in the third year and $5.00 thereafter.
The price per warrant reflects a 10.51% discount to the Sept. 29 closing share price of $2.57. The warrants' strike prices represent premiums of 36.19%, 55.64%, 75.1% and 94.55%, respectively, to the Sept. 29 closing share price.
If the closing price of Vista stock is at least 35% above the current exercise price of the warrants for 15 consecutive trading days, then the company may request that the warrants be exercised within 25 business days.
Proceeds will be used for repurchasing the company's $23 million of outstanding 10% senior secured convertible notes due March 4, 2011, advancing the Mt. Todd project and general corporate purposes.
Vista Gold is a gold exploration company based in Denver.
| Issuer: | Vista Gold Corp.
|
| Issue: | Special warrants
|
| Amount: | $33,733,500
|
| Price: | $2.30
|
| Warrants: | 14,666,739
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50 per share in year one, $4.00 in year two, $4.50 in year three and $5.00 thereafter
|
| Pricing date: | Sept. 30
|
| Upsized: | Oct. 12
|
| Settlement date: | Oct. 22
|
| Stock symbol: | NYSE Amex: VGZ
|
| Stock price: | $2.65 at close Oct. 22
|
| Market capitalization: | $123.44 million
|
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