DENVER, Dec. 28 /PRNewswire-FirstCall/ -- Vista Gold Corp. ("Vista") (TSX & NYSE Amex: VGZ) announced today that its wholly-owned subsidiary, Vista Gold (Barbados) Corp., has signed a Joint Venture Agreement with Pan Asia Resources Corporation ("Pan Asia") with respect to the development of the Awak Mas gold project in Indonesia.
The Joint Venture Agreement provides Pan Asia, a privately held resource development company, with the opportunity to earn a 60% interest in the Awak Mas project by (i) expending US$3 million on the project within the next 30 months, (ii) completing an environmental impact assessment and feasibility study (in compliance with the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects), each of which is required by the Contract of Work granted by the Indonesian Government under which the Awak Mas project is held, and (iii) issuing to Vista two million shares of Pan Asia and the right to purchase up to an additional two million shares of Pan Asia in the event of an initial public offering of Pan Asia shares (on the same terms as offered under such initial public offering).
Pan Asia has informed Vista that it intends to immediately commence the studies relating to the environmental impact assessment and may undertake some additional drilling prior to re-estimating the gold resources for the Awak Mas project under current market conditions. Under the terms of the Joint Venture Agreement, Vista will retain its controlling interest in the Awak Mas project until Pan Asia completes the earn-in conditions described above.
Fred Earnest, President and COO of Vista, commented, "We are looking forward to working with Pan Asia on the Awak Mas project. We believe the in-country experience that Pan Asia's management team brings to the joint venture will significantly benefit the development of the project. We believe the joint venture allows us to advance the Awak Mas project and realize greater value from this project in our portfolio while we continue to focus on the development of our Paredones Amarillos and Mt. Todd gold projects."
