Vista Gold Corp. Announces Favorable Changes to the Northern Territory, Australia Mineral Royalties Regime
11 Giugno 2024 - 12:45PM
Business Wire
Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the
“Company”) today announced that the Northern Territory, Australia
(the “NT”) has passed legislation to enact the Mineral Royalties
Act 2024 (“Royalties Act”) effective July 1, 2024. The Royalties
Act will replace the prior net profits royalty regime with an ad
valorem royalty regime for new mines. The new effective royalty
rate is expected to positively impact project economics for the
Company’s Mt Todd gold project in the NT. All dollar amounts in
this press release are in U.S. dollars.
The Royalties Act is aimed at encouraging present and future
exploration and development of mining projects by simplifying the
NT’s royalty system and making it more competitive with other Tier
1 jurisdictions. Pursuant to the Royalties Act, the royalty rate
applicable to gold doré from Mt Todd will be 3.5% of the value of
gold produced.
Frederick H. Earnest, President and CEO of Vista Gold, stated,
“We are pleased with the successful efforts of the NT Government to
encourage new mining development in the Territory. The 3.5% royalty
to be applied to the production from Mt Todd represents a
meaningful opportunity for improved project economics and earlier
shareholder returns compared to our 2024 updated feasibility study,
which included NT royalties equivalent to nearly a 7% ad valorem
rate. Under the previous net profits royalty regime, our base case
economic analysis at an $1,800 gold price estimated the payment of
$765 million in NT royalties over the life of the mine. The new
royalty rate will represent nearly a 50% reduction in payable
royalties and underscores the NT’s commitment to growing a viable
mining sector through new development.”
The Chief Minister and Treasurer of the Northern Territory, Eva
Lawler, recently commented, “Mining is a key driver of the
Territory economy. An ad valorem scheme is simple, competitive, and
delivers investment certainty, allowing new mines to commence
operations in the Territory, creating significant economic benefit,
higher employment, and more royalties for Territorians. Right now
we are in a position to set our course for a mining industry that
is not only profitable to the Northern Territory, but also supports
the energy transition to renewables.”1
John Rozelle, a “qualified person” as defined by Canadian
National Instrument 43-101 Standards of Disclosure for Mineral
Projects, has verified the data underlying the information
contained in and has approved this press release.
About Vista Gold Corp.
Vista is a gold project developer. The Company’s flagship asset
is Mt Todd, located in the mining friendly jurisdiction of Northern
Territory, Australia. Situated approximately 250 km southeast of
Darwin, Mt Todd is one of the largest development stage
opportunities in Australia and demonstrates compelling economics.
All major environmental and operating permits necessary to initiate
development of Mt Todd are in place.
Mt Todd benefits from its location in a leading mining
jurisdiction and offers opportunities to add value through growth
of mineral reserves, alternative development strategies, and other
de-risking activities.
For further information about Vista or Mt Todd, please contact
Pamela Solly, Vice President of Investor Relations, at (720)
981-1185 or visit the Company’s website at www.vistagold.com.
1
Lawler, Eva Dina and Australian Labor
Party. (2024, May 21) Securing the best value for our Territory
resources. Northern Territory Government.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933, as amended, and U.S.
Securities Exchange Act of 1934, as amended, and forward-looking
information within the meaning of Canadian securities laws. All
statements, other than statements of historical facts, including
our belief that the Mineral Royalties Act 2024 (“Royalties Act”)
will be effective July 1, 2024; our belief that the Royalties Act
will replace the prior net profits royalty regime with an ad
valorem regime for new mines; our belief that the new effective
royalty rate is expected to positively impact project economics for
the Company’s Mt Todd gold project; our belief that the Royalty Act
is aimed at encouraging present and future exploration and
development of mining projects by simplifying the NT’s royalty
system and making it more competitive with other Tier 1
jurisdictions; our belief that the royalty rate applicable to gold
doré from Mt Todd will be 3.5% of the value of gold produced; our
belief that the 3.5% royalty to be applied to the production from
Mt Todd represents a meaningful opportunity for improved project
economics and earlier shareholder returns compared to our 2024
updated feasibility study, which included NT royalties equivalent
to nearly a 7% ad valorem rate; under the previous net profits
royalty regime, our base case economic analysis at an $1,800 gold
price estimated the payment of $765 million in NT royalties over
the life of the mine; our belief that the new royalty rate will
represent nearly a 50% reduction in payable royalties and
underscores the NT’s commitment to growing a viable mining sector
through new development; our belief that Mt Todd is one of the
largest development stage opportunities in Australia and
demonstrates compelling economics; our belief that Mt Todd offers
opportunities to add value through growth of mineral reserves,
alternative development opportunities, and other de-risking
activities are forward-looking statements and forward-looking
information. The material factors and assumptions used to develop
the forward-looking statements and forward-looking information
contained in this news release include the following: our forecasts
and expected cash flows; our projected capital and operating costs;
our expectations regarding mining and metallurgical recoveries;
mine life and production rates; that laws or regulations impacting
mine development or mining activities will remain consistent; our
approved business plans, our mineral resource and reserve estimates
and results of preliminary economic assessments; preliminary
feasibility studies and feasibility studies on our projects, if
any; our experience with regulators; political and social support
of the mining industry in Australia; our experience and knowledge
of the Australian mining industry and our expectations of economic
conditions and the price of gold. When used in this news release,
the words “optimistic,” “potential,” “indicate,” “expect,”
“intend,” “hopes,” “believe,” “may,” “will,” “if,” “anticipate” 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
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
statements. Such factors include, among others, uncertainty of
resource and reserve estimates, uncertainty as to the Company’s
future operating costs and ability to raise capital; risks relating
to cost increases for capital and operating costs; risks of
shortages and fluctuating costs of equipment or supplies; risks
relating to fluctuations in the price of gold; the inherently
hazardous nature of mining-related activities; potential effects on
our 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 as to the results of bulk metallurgical
test work; and uncertainty as to completion of critical milestones
for Mt Todd; as well as those factors discussed under the headings
“Note Regarding Forward-Looking Statements” and “Risk Factors” in
the Company’s latest Annual Report on Form 10-K as filed in March
2024, subsequent Quarterly Reports on Form 10-Q, and other
documents filed with the U.S. Securities and Exchange Commission
and Canadian securities regulatory authorities. Although we have
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. Except as required by law, we assume no
obligation to publicly update any forward-looking statements or
forward-looking information; whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240607564698/en/
Pamela Solly, Vice President of Investor Relations, (720)
981-1185
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