Registration No. 333-91254
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
VISTA GOLD CORP.
(Exact name of registrant as specified in its charter)
Yukon Territory, Canada
(State or other jurisdiction of incorporation or organization)
98-0066159
(I.R.S. Employer Identification Number)
Suite 5, 7961 Shaffer Parkway
Littleton, Colorado 80127
(720) 981-1185
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
Ronald J. McGregor
President and Chief Executive Officer
Vista Gold Corp.
Suite 5, 7961 Shaffer Parkway
Littleton, Colorado 80127
(720) 981-1185
(Name, address, including zip code, and telephone number,
including area code, of agent for service and authorized
representative of registrant in the United States)
with copies to:
Jonathan C. Guest, Esq. William F. Sirett, Esq.
Perkins, Smith & Cohen, LLP Borden Ladner Gervais LLP
One Beacon Street 1200 Waterfront Centre
Boston, Massachusetts 02108 200 Burrard Street, P.O. Box 48600
(617) 854-4000 Vancouver, B.C., Canada V7X 1T2
(604) 687-5744
Approximate date of commencement of proposed sale to the public: As soon
as possible after this Registration Statement is declared effective.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, check the following
box. |_|
If any of the securities being registered on this Form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. |X|
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. |_|
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. |_|
If delivery of the prospectus is expected to be made pursuant to Rule 434,
check the following box. |_|
CALCULATION OF REGISTRATION FEE
Title of Each Class of Proposed Maximum Proposed Maximum
Securities to be Amount to be Offering Price per Aggregate Offering Amount of
Registered Registered (1) Unit (2) Price (2) Registration Fee (2)
Common Shares 7,999,974 shares $3.90 $31,199,899 $2,870
without par value
(1) Total represents (i) 1,296,296 common shares issued in connection with
private placement transactions in February and March 2002, (ii) 218,321
common shares since issued upon conversion of debentures issued in the
March 2002 transaction, and (iii) up to 6,485,357 additional common shares
that are issuable upon exercise of warrants and conversion of debentures
issued in the February and March 2002 transactions. All of the shares
registered hereby are to be offered by selling security holders of the
Registrant. Amounts shown in table have been adjusted to reflect a
consolidation of the Registrant's common shares on a 1-for-20 basis,
effective June 19, 2002. In the event of a stock split, stock dividend or
similar transaction involving the common shares of the Registrant, in
order to prevent dilution, the number of shares registered shall be
automatically increased to cover additional shares in accordance with Rule
416(a) under the Securities Act.
(2) Estimated solely for the purpose of calculating the registration fee in
accordance with Rule 457(c) under the Securities Act, based on the average
of the high and low prices of the Registrant's common shares reported on
the American Stock Exchange on June 24, 2002.
------------
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until this Registration Statement
shall become effective on such date as the Securities and Exchange Commission,
acting pursuant to said Section 8(a), may determine.
The information contained in this prospectus is not complete and may be
changed. The selling security holders may not sell these securities until the
registration statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these securities and it is
not soliciting an offer to buy these securities in any state where the offer or
sale is not permitted.
SUBJECT TO COMPLETION, DATED AUGUST ___, 2002
VISTA GOLD CORP.
7,999,974 Common Shares
without par value
All of the 7,999,974 Vista Gold common shares offered by this prospectus
may be offered and sold, from time to time, by the selling security holders
identified in this prospectus. These shares include 1,514,617 shares currently
owned by selling security holders, 2,485,370 shares issuable upon conversion of
debentures and 3,999,987 shares issuable upon exercise of warrants, including
warrants to be issued upon conversion of debentures, all as described in this
prospectus under "Selling Security Holders." We will not receive any of the
proceeds from the sale of shares by the selling security holders. Unless
otherwise indicated, share totals and prices shown in this prospectus have been
adjusted to reflect a consolidation of our common shares on a 1-for-20 basis,
effective June 19, 2002.
The selling security holders may sell the common shares from time to time
in public or private transactions, on or off the American Stock Exchange or the
Toronto Stock Exchange, at prevailing market prices, or at privately negotiated
prices. The selling security holders may sell shares directly to purchasers or
through brokers or dealers. Brokers or dealers may receive compensation in the
form of discounts, concessions or commissions from the selling security holders.
Our common shares are traded on the American Stock Exchange and on the
Toronto Stock Exchange under the symbol VGZ. On August 8, 2002, the closing
price of a common share, as reported on the American Stock Exchange, was $4.00
per share on a post-consolidation basis.
INVESTING IN OUR COMMON SHARES INVOLVES A HIGH DEGREE OF RISK. SEE "RISK
FACTORS" BEGINNING ON PAGE 2 TO READ ABOUT CERTAIN RISKS YOU SHOULD CONSIDER
BEFORE BUYING OUR COMMON SHARES.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The date of this prospectus is August ___, 2002.
FORWARD-LOOKING STATEMENTS
Certain statements in this prospectus and in the documents incorporated by
reference herein constitute forward-looking statements concerning, among other
things, projected annual gold production, mineral resources, proven or probable
reserves and cash operating costs. Forward-looking statements typically contain
words or phrases such as "anticipates," "estimates," "projects," "foresees,"
"management believes," "believes" and words or phrases of similar import. These
statements are subject to certain risks, uncertainties or assumptions. If one or
more of these risks or uncertainties materialize, or if underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected. Important factors that could cause actual results to
differ materially from those in such forward-looking statements include those
identified in this document under "Risk Factors" below. Vista Gold assumes no
obligation to update these forward-looking statements to reflect actual results,
changes in assumptions, or changes in other factors affecting such statements.
VISTA GOLD CORP.
Vista Gold Corp. is engaged in the evaluation, acquisition and exploration
of mineral properties with the potential to host gold deposits, as well as the
development and operation of gold properties in the Americas. Our primary focus
currently is on the acquisition of properties that contain gold deposits. Since
1971, Vista Gold and its predecessor companies have held participating interests
in seven mines, four of which were discovered by Vista Gold. We have also
operated five of the seven mines.
During 2001, our primary operation, the Hycroft mine in Nevada, remained
shut down pending an increase in prevailing gold prices. However, the Hycroft
mine continued to be the principal source of cash for Vista Gold because gold
and by-product silver continued to be produced from ore previously placed on the
heap leach pads.
Vista Gold owns the Amayapampa gold property in Bolivia. A feasibility
study for this property was completed in 1997 and a revised feasibility study
was completed in the first quarter of 2000. We hold several mining claims in
Canada and own approximately a 25% equity interest in Zamora, a Canadian mineral
exploration company with interests in mineral concessions in southern Ecuador.
Vista Gold performed no exploration or development activity in 2001.
On May 23, 2002, we signed a letter of intent, then non-binding, to
purchase the 100% interest held by Viceroy Resource Corporation in the Paredones
Amarillos gold project on the Baja Peninsula, Mexico. Completion of the
transaction is subject to completion of a due diligence review of the project by
Vista Gold, governmental and regulatory approvals, and negotiation and execution
of a definitive purchase agreement. On July 17, 2002, we notified Viceroy that
we had completed our due diligence review of the project and we agreed that the
letter of intent would become binding as of that date. The total purchase price
of Cdn. $3 million (approximately U.S. $2 million), will be payable 50% in cash,
with Cdn. $1.0 million due at closing and Cdn. $0.5 million due one year from
closing, and 50% in Vista Gold equity units consisting of one common share and
one two-year warrant to purchase one common share. The price of the equity units
will be 90% of the weighted average closing price of Vista Gold's common shares
on the five trading days immediately preceding the date of the definitive
purchase agreement. The exercise price of the warrants will equal 125% of that
weighted average closing price.
Vista Gold was originally incorporated under the Company Act (British
Columbia) in 1983 under the name "Granges Exploration Ltd.". In 1985, Granges
Exploration Ltd. and Pecos Resources Ltd. amalgamated under the name "Granges
Exploration Ltd." and in 1989, Granges
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Exploration Ltd. changed its name to "Granges Inc.". In 1995, Granges and
Hycroft Resources & Development Corporation were amalgamated under the name
"Granges Inc.". In 1996, Granges and Da Capo Resources Ltd. amalgamated under
the name "Vista Gold Corp.". Effective December 19, 1997, Vista Gold was
continued from British Columbia to the Yukon Territory, Canada under the
Business Corporations Act (Yukon Territory).
Our principal executive offices are located at Suite 5, 7961 Shaffer
Parkway, Littleton, Colorado 80127, and our telephone number is (720) 981-1185.
Unless otherwise specified, monetary amounts in this prospectus are
reported in U.S. dollars.
RISK FACTORS
An investment in our common shares involves a high degree of risk. You
should carefully consider the risks described below and the other information
contained in this prospectus before deciding to invest in our common shares. The
risks described below are not the only ones facing our company. Additional risks
not presently known to us or which we currently consider immaterial may also
adversely affect our business. We have attempted to identify the major factors
under the heading "Risk Factors" that could cause differences between actual and
planned or expected results, and we have included all material risk factors. If
any of the following risks actually happen, our business, financial condition
and operating results could be materially adversely affected. In this case, the
trading price of our common shares could decline, and you could lose part or all
of your investment.
We cannot be certain that our acquisition, exploration and development
activities will be commercially successful.
We currently have no properties that produce gold in commercial
quantities. Our gold production has declined steadily since mining activities
were suspended at the Hycroft mine in 1998. Gold production is now nominal and
is incidental to heap leach pad rinsing activities. In these circumstances,
proceeds realized from the sale of gold are not reported as revenues, but rather
are netted against operating costs.
Substantial expenditures are required to acquire existing gold properties,
to establish ore reserves through drilling and analysis, to develop
metallurgical processes to extract metal from the ore and, in the case of new
properties, to develop the mining and processing facilities and infrastructure
at any site chosen for mining. We cannot assure you that any gold reserves or
resources acquired or discovered will be in sufficient quantities to justify
commercial operations or that the funds required for development can be obtained
on a timely basis.
The price of gold is subject to fluctuations, which could adversely affect the
realizable value of our assets and potential future results of operations and
cash flow.
Our principal assets are gold reserves and resources. We intend to acquire
additional properties containing gold reserves and resources. The price that we
pay to acquire these properties will be, in large part, influenced by the price
of gold at the time of the acquisition. Our future revenues are expected to be,
in large part, derived from the mining and sale of gold from these properties or
from the outright sale of some of these properties. The value of these gold
reserves and resources, and the value of any potential gold production
therefrom, will vary in direct proportion to variations in gold prices. The
price of gold has fluctuated widely, and is affected by numerous factors beyond
our control, including international, economic and political trends,
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expectations of inflation, currency exchange fluctuations, central bank
activities, interest rates, global or regional consumption patterns (such as the
development of gold coin programs), speculative activities and increased
production due to new mine developments and improved mining and production
methods. The effect of these factors on the price of gold, and therefore the
economic viability of any of our projects, cannot accurately be predicted. Any
drop in the price of gold or other precious metals would adversely affect our
asset values, revenues, profits and cash flows.
Mining exploration, development and operating activities are inherently
hazardous.
Mineral exploration involves many risks that even a combination of
experience, knowledge and careful evaluation may not be able to overcome.
Operations in which Vista Gold has direct or indirect interests will be subject
to all the hazards and risks normally incidental to exploration, development and
production of gold and other metals, any of which could result in work
stoppages, damage to property and possible environmental damage. The nature of
these risks is such that liabilities might exceed any liability insurance policy
limits. It is also possible that the liabilities and hazards might not be
insurable, or, Vista Gold could elect not to insure itself against such
liabilities due to high premium costs or other reasons, in which event, we could
incur significant costs that could have a material adverse effect on our
financial condition.
Reserve calculations are estimates only, subject to uncertainty due to factors
including metal prices and recoverability of metal in the mining process.
There is a degree of uncertainty attributable to the calculation of
reserves and corresponding grades being mined or dedicated to future production.
Until reserves are actually mined and processed, the quantity of ore and grades
must be considered as an estimate only. In addition, the quantity of reserves
and ore may vary depending on metal prices. Any material change in the quantity
of reserves, mineralization, grade or stripping ratio may affect the economic
viability of our properties. In addition, there can be no assurance that gold
recoveries or other metal recoveries in small-scale laboratory tests will be
duplicated in larger scale tests under on-site conditions or during production.
Our exploration and development operations are subject to environmental
regulations, which could result in our incurring additional costs and
operational delays.
All phases of our operations are subject to environmental regulation.
Environmental legislation is evolving in some countries or jurisdictions in a
manner which will require stricter standards and enforcement, increased fines
and penalties for non-compliance, more stringent environmental assessments of
proposed projects and a heightened degree of responsibility for companies and
their officers, directors and employees. There is no assurance that future
changes in environmental regulation, if any, will not adversely affect our
operations. We are currently subject to environmental regulations with respect
to our properties in Nevada and Bolivia.
The Hycroft mine in Nevada occupies private and public lands. The public
lands include unpatented mining claims on lands administered by the U.S. Bureau
of Land Management. These claims are governed by the laws and regulations of the
U.S. federal government and the state of Nevada.
U.S. Federal Laws
The Bureau of Land Management requires that mining operations on lands
subject to its regulation obtain an approved plan of operations subject to
environmental impact evaluation under the National Environmental Policy Act. Any
significant modifications to the plan of operations may require the completion
of an environmental assessment or Environmental Impact Statement prior to
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approval. Mining companies must post a bond or other surety to guarantee the
cost of post-mining reclamation. These requirements could add significant
additional cost and delays to any mining project we undertake.
Under the Resource Conservation and Recovery Act, mining companies may
incur costs for generating, transporting, treating, storing, or disposing of
hazardous waste, as well as for closure and post-closure maintenance once they
have completed mining activities on a property. Our mining operations may
produce air emissions, including fugitive dust and other air pollutants, from
stationary equipment, storage facilities, and the use of mobile sources such as
trucks and heavy construction equipment which are subject to review, monitoring
and/or control requirements under the Federal Clean Air Act and state air
quality laws. Permitting rules may impose limitations on our production levels
or create additional capital expenditures in order to comply with the rules.
The Comprehensive Environmental Response Compensation and Liability Act of
1980, as amended imposes strict, joint and several liability on parties
associated with releases or threats of releases of hazardous substances. Those
liable groups include, among others, the current owners and operators of
facilities which release hazardous substances into the environment and past
owners and operators of properties who owned such properties at the time the
disposal of the hazardous substances occurred. This liability could include the
cost of removal or remediation of the release and damages for injury to the
surrounding property. We cannot predict the potential for future CERCLA
liability with respect to our Nevada property or surrounding areas.
Nevada Laws
At the state level, mining operations in Nevada are also regulated by the
Nevada Department of Conservation and Natural Resources, Division of
Environmental Protection. Nevada state law requires the Hycroft mine to hold
Nevada Water Pollution Control Permits, which dictate operating controls and
closure and post-closure requirements directed at protecting surface and ground
water. In addition, we are required to hold Nevada Reclamation Permits required
under NRS 519A.010 through 519A.170. These permits mandate concurrent and
post-mining reclamation of mines and require the posting of reclamation bonds
sufficient to guarantee the cost of mine reclamation. Other Nevada regulations
govern operating and design standards for the construction and operation of any
source of air contamination, and landfill operations. Any changes to these laws
and regulations could have an adverse impact on our financial performance and
results of operations by, for example, required changes to operating
constraints, technical criteria, fees or surety requirements.
Bolivia Laws
As to our operations in Bolivia, we are required under Bolivian laws and
regulations to acquire permits and other authorizations before we can develop
and mine the Amayapampa project. In Bolivia there is relatively new
comprehensive environmental legislation, and the permitting and authorization
process may be less established and less predictable than in the United States.
There can be no assurance that we will be able to acquire necessary permits or
authorizations on a timely basis. Delays in acquiring any permit or
authorization could increase the development cost of the Amayapampa project, or
delay the start of production.
Under Bolivian regulations, the primary component of environmental
compliance and permitting is the completion and approval of an environmental
impact study known as Estudio de Evaluacion de Impacto Ambiental, or EEIA. The
EEIA provides a description of the existing environment, both natural and
socio-economic, at the project site and in the region; interprets and analyzes
the nature and magnitude of potential environmental impacts that might result
from project activities, and describes and evaluates the effectiveness of the
operational measures planned to
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mitigate the environmental impacts. Baseline environmental conditions, including
meteorology and air quality, hydrological resources and surface water, are the
basis by which direct and indirect project-related impacts are evaluated and by
which potential mitigation measures are proposed. If our project is found to
significantly adversely impact any of these baseline conditions, we could incur
significant costs to correct the adverse impact, or delay the start of
production.
We face intense competition in the mining industry.
The mining industry is intensely competitive in all of its phases. As a
result of this competition, some of which is with large established mining
companies with substantial capabilities and with greater financial and technical
resources than ours, we may be unable to acquire additional attractive mining
claims or financing on terms we consider acceptable. Vista Gold also competes
with other mining companies in the recruitment and retention of qualified
managerial and technical employees. If we are unable to successfully compete for
qualified employees, our exploration and development programs may be slowed down
or suspended.
Some of our directors may have conflicts of interest as a result of their
involvement with other natural resource companies.
Some of our directors are directors or officers of other natural resource
or mining-related companies. A. Murray Sinclair is currently a director of:
Belvedere Resources Ltd., Breakwater Resources Ltd., Cheni Resources Ltd.,
Coubran Resources Ltd., Foxpoint Resources Ltd., Golden Sitka Resources Ltd.,
New Inca Gold Ltd. and Wolfden Resources Inc. Robert A. Quartermain is currently
President and a director of Silver Standard Resources Inc., and is an officer
and a director of Canplats Resources Corporation and of Pacific Sapphire Company
Ltd. He is a director of Repadre Capital Corporation (which holds interests in
resource properties) and Western Copper Holdings Ltd. C. Thomas Ogryzlo is the
President and Chief Executive Officer of Canatec Development Corporation.
Michael B. Richings is a director of L.B. Mining Ltd. These associations may
give rise to conflicts of interest from time to time. In the event that any such
conflict of interest arises, a director who has such a conflict is required to
disclose the conflict to a meeting of the directors of the company in question
and to abstain from voting for or against approval of any matter in which such
director may have a conflict. In appropriate cases, the company in question will
establish a special committee of independent directors to review a matter in
which several directors, or management, may have a conflict. In accordance with
the laws of the Yukon Territory, the directors of all companies are required to
act honestly, in good faith and in the best interests of a company for which
they serve as a director.
There may be challenges to our title in our mineral properties.
There may be challenges to title to the mineral properties in which we
hold a material interest. If there are title defects with respect to any of our
properties, we might be required to compensate other persons or perhaps reduce
our interest in the affected property. Also, in any such case, the investigation
and resolution of title issues would divert management's time from ongoing
exploration and development programs.
Our property interests in Bolivia are subject to risks from political and
economic instability in that country.
We have property interests in Bolivia, which may be affected by risks
associated with political or economic instability in that country. The risks
include, but are not limited to: military repression, extreme fluctuations in
currency exchange rates, labor instability or militancy, mineral title
irregularities and high rates of inflation. Changes in mining or investment
policies or shifts in political attitude in Bolivia may adversely affect our
business. We may be affected in varying
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degrees by government regulation with respect to restrictions on production,
price controls, export controls, income taxes, expropriation of property,
maintenance of claims, environmental legislation, land use, land claims of local
people, water use and mine safety. The effect of these factors cannot be
accurately predicted.
Our financial position and results are subject to fluctuations in foreign
currency values.
Because we have mining exploration and development operations in North and
South America, we are subject to foreign currency fluctuations, which may
materially affect our financial position and results. We do not engage in
currency hedging to offset any risk of currency fluctuations.
We measure and report our financial results in U.S. dollars. We have a
mining project in Bolivia and we are looking for other projects in Mexico and in
Central and South America. Economic conditions and monetary policies in these
countries can result in severe currency fluctuations (as evidenced by the 1999
devaluation of the Brazilian real). The Bolivian Boliviano, for example, has
fluctuated between U.S. $0.133 and $0.156, or 17%, over the past 12 months.
Currently all our material transactions in Bolivia are denominated in U.S.
dollars. However, if we begin commercial operations in Bolivia (or other Latin
American countries) it is possible that material transactions incurred in the
local currency, such as engagement of local contractors for major projects, will
be settled at a U.S. dollar value that is different from the U.S. dollar value
of the transaction at the time it was incurred. This could have the effect of
undermining profits from our operations in that country.
We may be unable to raise additional capital on favorable terms.
The exploration and development of our development properties,
specifically the construction of mining facilities and commencement of mining
operations, may require substantial additional financing. Significant capital
investment is required to achieve commercial production from each of our
non-producing properties. We will have to raise additional funds from external
sources in order to restart mining activities at the Hycroft mine or begin
construction and development activities at the Amayapampa project in Bolivia.
There can be no assurance that additional financing will be available at all or
on acceptable terms and, if additional financing is not available, we may have
to substantially reduce or cease our operations.
The market price of our common shares could decrease as a result of the impact
of the significant increase in the number of our outstanding shares that may
result from conversion of the debentures and exercise of warrants pursuant to
our 2002 issuances.
At July 25, 2002, we had outstanding 6,067,869 common shares. Of the
7,999,974 shares being offered by our selling security holders under this
prospectus, 1,514,617 are currently outstanding and therefore are already
reflected in our total outstanding shares. Of the remaining shares being offered
under this prospectus, 2,485,370 are issuable upon conversion of debentures and
3,999,987 shares issuable upon exercise of warrants, including warrants to be
issued upon conversion of debentures, all as acquired from Vista Gold in private
placement transactions we undertook this year as described below under "Selling
Security Holders." If all of the debentures are converted and all the warrants
exercised, the number of our currently outstanding shares would more than
double, to 12,553,226. The impact of the issuance of a significant amount of
common shares from these debenture conversions and warrant exercises may place
substantial downward pressure on the market price of our common shares.
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It may be difficult to enforce judgments or bring actions outside the United
States against us and certain of our directors and officers.
Vista Gold is a Canadian corporation and certain of its directors and
officers are neither citizens nor residents of the United States. A substantial
part of the assets of several of these persons, and of Vista Gold, are located
outside the United States. As a result, it may be difficult or impossible for an
investor:
o to enforce in courts outside the United States judgments obtained in
United States courts based upon the civil liability provisions of
United States federal securities laws against these persons and
Vista Gold; or
o to bring in courts outside the United States an original action to
enforce liabilities based upon United States federal securities laws
against these persons and Vista Gold.
USE OF PROCEEDS
Vista Gold will not receive any proceeds from the sale of the common
shares offered by the selling security holders.
SELLING SECURITY HOLDERS
The selling security holders identified in the following table are
offering for sale a total of 7,999,974 common shares. This total, and the
numbers in the table, have been adjusted to reflect a consolidation of our
common shares on a 1-for-20 basis, effective June 19, 2002. On a
post-consolidation basis, these shares include 1,514,617 shares currently owned
by selling security holders, 2,485,370 shares issuable upon conversion of
debentures and 3,999,987 shares issuable upon exercise of warrants, including
warrants to be issued upon conversion of debentures, all as acquired from Vista
Gold in private placement transactions we undertook in February 2002 and March
2002. These transactions are described below on a pre-consolidation basis, but
with post-consolidation exercise or conversion prices shown as applicable.
These transactions represented two parts of a private placement financing
in which we raised a total of $3.8 million. Global Resource Investments Ltd. was
our agent for this financing, pursuant to an agency agreement dated February 1,
2002. Both transactions were priced as of January 22, 2002. The price per unit
in each of the transactions was $0.0513 ($1.026, on a post-consolidation basis),
with the common share component of the unit representing substantially all of
the unit value. On January 22, 2002, the closing price for our common shares on
the American Stock Exchange was $0.06 ($1.20, on a post-consolidation basis).
(i) On February 1, 2002, in the first part of the private placement, Vista
Gold issued 20,000,000 units (equivalent to 1,000,000 on a post-consolidation
basis) to Stockscape.com Technologies Inc., one of the selling security holders,
at a price of $0.0513 per unit, for an aggregate purchase price of $1,026,000.
Each unit consisted of one common share and one share purchase warrant
exercisable for one additional common share at $0.075 (now $1.50, on a
post-consolidation basis) until February 1, 2007. On February 1, 2002, the
closing price for our common shares on the American Stock Exchange was $0.07
($1.40, on a post-consolidation basis). As consideration for its services as
agent in connection with this unit offering, we issued an additional 1,600,000
units (equivalent to 80,000 on a post-consolidation basis) to Global Resource
Investments Ltd., another selling security holder. Issuance of shares upon
warrant exercise was
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subject to shareholder approval of issuance of the warrants, which occurred at
our Annual and Special General Meeting of shareholders on April 26, 2002. In
July 2002, Stockscape.com, a publicly-traded Canadian corporation, merged with
three other companies to form a new company named "Quest Investment
Corporation".
Of the cash proceeds raised in this part of the private placement,
approximately $800,000 was used to settle an outstanding claim of $902,819
against Vista Gold, Stockscape.com and other defendants by United States
Fidelity & Guarantee Company. The lawsuit, which was dismissed on April 23,
2002, involved a General Contract of Indemnity in connection with the posting of
a reclamation bond for mining activities by Mineral Ridge Inc. This dismissal
was a condition to the release from escrow of the proceeds from the convertible
debenture issuance discussed in (ii) below. Please see "Part II -- Other
Information -- Item 1. Legal Proceedings" in our Form 10-QSB for the quarterly
period ended March 31, 2002, for information about this matter.
(ii) On March 19, 2002, in the second part of the private placement, Vista
Gold issued $2,774,000 aggregate principal amount of convertible debentures. The
debentures are convertible into debenture units at a price of $0.0513 (now
$1.026, on a post-consolidation basis) per debenture unit, each consisting of
one common share and one 5-year warrant (termed a "debenture warrant") entitling
the holder to purchase one common share at a price of $0.075 (now $1.50, on a
post-consolidation basis) until March 18, 2007. On March 19, 2002, the closing
price for our common shares on the American Stock Exchange was $0.10 ($2.00, on
a post-consolidation basis). The debentures will automatically be converted into
debenture units on the date that the registration statement, of which this
prospectus forms a part, is declared effective by the SEC. If the registration
statement is not declared effective by September 20, 2002, the debentures will
become due and payable in cash, at the option of the holder, at any time after
that date.
As consideration for its services as agent in connection with this
debenture offering, we issued to Global Resource special warrants exercisable
for 4,325,925 units (equivalent to 216,296 on a post-consolidation basis), with
each unit consisting of one common share and one warrant with the same terms as
the share and warrant components, respectively, of the debenture units. Issuance
of shares upon conversion of the debentures, upon exercise of the debenture
warrants, upon exercise of the special warrants issued to Global Resource and
upon exercise of the warrants included in the units issuable to Global Resource
upon the exercise of its special warrants, were all subject to shareholder
approval, which occurred at our Annual and Special General Meeting on April 26,
2002. In accordance with the terms of the special warrants issued to Global
Resource, these were deemed to be exercised, without any further action by
Global Resource, as a result of the shareholder approval of the issuance of the
share and warrant components of the units issuable on exercise of the special
warrants.
Of the cash proceeds raised in this part of the transaction, approximately
$1 million has been allocated for the Paredones Amarillos gold property
acquisition described on page 1 under "Vista Gold Corp.". The remainder will be
used to evaluate and acquire gold mining properties, and to hold and maintain
these properties for development or sale in anticipation of higher gold prices.
We agreed in connection with the above transactions to register all shares
issuable in the transactions including shares issuable upon exercise of
warrants, conversion of debentures and exercise of the debenture warrants.
The selling security holders may offer their common shares for sale from
time to time at market prices prevailing at the time of sale or at negotiated
prices, and without payment of any underwriting discounts or commissions except
for usual and customary selling commissions paid to brokers or dealers.
The following table sets forth, as of July 25, 2002, the number of shares
being held of record or beneficially by the selling security holders that may be
offered under this prospectus, and provides by footnote reference any material
relationship between Vista Gold and the selling security holder, all of which is
based upon information currently available to us.
8
-----------------------------------------------------------------------------------------------------------------------
Beneficial Ownership of Beneficial Ownership of
Selling Security Holder Shares
Prior to Offering (1) After Offering (2)
--------------------- ------------------
-----------------------------------------------------------------------------------------------------------------------
Number of Shares
Offered
Name of Selling Security Holder Number Percent Hereby(3) Number Percent
------------------------------- ------ ------- --------- ------ -------
-----------------------------------------------------------------------------------------------------------------------
Quest Investment Corporation(4) 2,000,000(5) 28.3% 2,000,000(5) 0 *
-----------------------------------------------------------------------------------------------------------------------
Global Resource Investments Ltd.(6) 592,592(7) 9.3% 592,592(7) 0 *
-----------------------------------------------------------------------------------------------------------------------
Quest Ventures Ltd.(8) 584,794 8.8% 584,794 0 *
-----------------------------------------------------------------------------------------------------------------------
Robert Quartermain 194,930 3.1% 194,930 0 *
-----------------------------------------------------------------------------------------------------------------------
Silver Standard Resources Inc.(9) 341,130 5.3% 341,130 0 *
-----------------------------------------------------------------------------------------------------------------------
PanAmerica Capital Group, Inc.(10) 389,862 6.0% 389,862 0 *
-----------------------------------------------------------------------------------------------------------------------
Agora Communications Ltd.(11) 97,464 1.6% 97,464 0 *
-----------------------------------------------------------------------------------------------------------------------
Douglas Casey 194,930 3.2% 194,930 0 *
-----------------------------------------------------------------------------------------------------------------------
MDW & Associates, LLC(12) 48,732 0.8% 48,732 0 *
-----------------------------------------------------------------------------------------------------------------------
Exploration Capital Partners 2000 Limited
Partnership(13) 2,245,614 27.0% 2,245,614 0 *
-----------------------------------------------------------------------------------------------------------------------
Adventure Seekers Travel, Inc.(14) 48,732 0.8% 48,732 0 *
-----------------------------------------------------------------------------------------------------------------------
Susan C. van Eeden 38,986 0.6% 38,986 0 *
-----------------------------------------------------------------------------------------------------------------------
Keith Presnell 116,958 1.9% 116,958 0 *
-----------------------------------------------------------------------------------------------------------------------
The Howard Family Trust (under agreement
of trust dated 4/29/99) 77,972 1.3% 77,972 0 *
-----------------------------------------------------------------------------------------------------------------------
David Lyall 120,856 2.0% 120,856 0 *
-----------------------------------------------------------------------------------------------------------------------
John Tognetti 120,856 2.0% 120,856 0 *
-----------------------------------------------------------------------------------------------------------------------
Peter M. Brown 120,856 2.0% 120,856 0 *
-----------------------------------------------------------------------------------------------------------------------
Middlemarch Partners Limited(15) 125,856(16) 2.0% 120,856 5,000 *
-----------------------------------------------------------------------------------------------------------------------
Andrew F.B. Milligan 120,856 2.0% 120,856 0 *
-----------------------------------------------------------------------------------------------------------------------
Ross Beaty 282,556(17) 4.6% 120,856 161,700 1.3%
-----------------------------------------------------------------------------------------------------------------------
Brent Cook 38,986 0.6% 38,986 0 *
-----------------------------------------------------------------------------------------------------------------------
Endeavour Capital Corporation(18) 263,156 4.2% 263,156 0 *
-----------------------------------------------------------------------------------------------------------------------
TOTAL 8,166,674 65.1% 7,999,974 166,700 1.3%
-----------------------------------------------------------------------------------------------------------------------
* Represents less than 1% of the outstanding common shares.
(1) Applicable percentage of ownership is based on 6,067,869 common shares
outstanding as of July 25, 2002, plus any securities held by such holder
exercisable for or convertible into common shares within sixty (60) days
after the date of this prospectus, in accordance with Rule 13d-3(d)(1)
under the Securities Exchange Act of 1934, as amended.
(2) Because the selling security holders may sell all, some or none of their
shares or may acquire or dispose of other common shares, we cannot
estimate the aggregate number of shares which will be sold in this
offering or the number or percentage of common shares that each selling
security holder will own upon completion of this offering.
(3) Unless otherwise noted, represents the total number of common shares
issuable upon conversion of debentures and exercise of debenture warrants
acquired in March 2002 private placement as described above, and assumes
in
9
all cases that all shares are sold pursuant to this offering and that no
other common shares are acquired or disposed of by the selling security
holders prior to the termination of this offering.
(4) Quest Investment Corporation is the successor to Stockscape.com
Technologies Inc. pursuant to a merger with three other companies effected
in July 2002. Quest Investment has outstanding two classes of equity
securities, one having one vote per share and the other having five votes
per share. A. Murray Sinclair, a director of Vista Gold, is a director of
Quest Investment, and holds approximately 4.6% of the outstanding voting
power. The President of Quest Investment is Brian Bayley. The major
shareholders of Quest Investment are A&E Capital Funding, Inc., a Canadian
corporation of which Robert G. Atkinson and Gordon D. Ewart are
controlling shareholders, directors and officers (12.4% of outstanding
voting power), and A. Richards Rule, a shareholder who beneficially owns
approximately 12.8% of the outstanding voting power.
(5) Consists of 1,000,000 shares and 1,000,000 shares issuable upon exercise
of warrants acquired in February 2002 private placement described above.
(6) Global Resource Investments Ltd. is a private California partnership 100%
owned by Rule Investments, Inc., which in turn is 100% owned by the Rule
Family Trust u/d/t 12/17/98. A. Richards Rule is President and sole
Director of Rule Investments, and, with his wife, is co-Trustee of the
Rule Family Trust.
(7) Consists of 80,000 shares and 80,000 shares issuable upon exercise of
warrants acquired as an agency fee in February 2002 private placement
described above, as well as 216,296 shares and 216,296 shares issuable
upon exercise of warrants acquired as an agency fee in March 2002 private
placement described above.
(8) A. Murray Sinclair, a director of Vista Gold, is a director and the
President of Quest Ventures Ltd., and holds 50% of its outstanding common
shares. Based on its filing with the Toronto Stock Exchange in connection
with its purchase of convertible debentures from Vista Gold, the other
controlling shareholder of Quest Ventures is Brian Bayley.
(9) Silver Standard Resources Inc. is a widely-held, publicly-traded Canadian
corporation. Robert Quartermain, a director of Vista Gold, is President
and a director of Silver Standard and is the beneficial owner of
approximately 2% of its outstanding common shares. To the knowledge of
Silver Standard management, no person beneficially owns 5% or more of its
outstanding common shares.
(10) PanAmerica Capital Group, Inc., is a privately-held corporation based in
Panama. Based on its filing with the Toronto Stock Exchange in connection
with its purchase of convertible debentures from Vista Gold, its President
is Patrick M. Abraham, and no person beneficially owns 10% or more of its
outstanding equity.
(11) Agora Communications Ltd. is a privately-held corporation based in
Liechtenstein. Based on its filing with the Toronto Stock Exchange in
connection with its purchase of convertible debentures from Vista Gold,
Jurg Keller is a director and authorized signatory, and no person
beneficially owns 10% or more of its outstanding equity.
(12) MDW & Associates LLC is a privately-held limited liability company based
in California. Based on its filing with the Toronto Stock Exchange in
connection with its purchase of convertible debentures from Vista Gold,
Michael D. Winn is a manager of the LLC, and each of Mr. Winn and Putney
Holding Company, L.P. owns 10% or more of its outstanding equity. Further
information as to Putney Holding Company, L.P. is not available.
(13) Exploration Capital Partners 2000 Limited Partnership is a Nevada limited
partnership. Its General Partner is Resource Capital Investment Corp., a
Nevada corporation which is 90% owned by the Rule Family Trust u/d/t
12/17/98. A. Richards Rule is President and a Director of Resource
Capital, and, with his wife, is co-Trustee of the Rule Family Trust.
10
(14) Adventure Seekers Travel, Inc., is a privately-held corporation based in
California. Based on its filing with the Toronto Stock Exchange in
connection with its purchase of convertible debentures from Vista Gold,
its President is Bryce W. Rhodes, and its controlling shareholders are Mr.
Rhodes and Susan W. Rhodes.
(15) Middlemarch Partners Limited is a privately-held corporation based in the
United Kingdom. Based on its filing with the Toronto Stock Exchange in
connection with its purchase of convertible debentures from Vista Gold,
Cecilia M. Kershaw is a managing director and authorized signatory, and
Ms. Kershaw and Henry Tondowski are its controlling equityholders.
(16) Includes 5,000 previously acquired common shares that are not being
registered for inclusion in this offering.
(17) Includes 161,700 previously acquired common shares that are not being
registered for inclusion in this offering.
(18) Endeavour Capital Corporation is a privately-held corporation based in the
Cayman Islands. Based on its filing with the Toronto Stock Exchange in
connection with its purchase of convertible debentures from Vista Gold,
Paul Donovan is a director and authorized signatory, and its controlling
equityholders are The Equitable Life Assurance Society, a widely-held
entity, and Trinity Holdings Limited, based in Liechtenstein. Further
information as to Trinity Holdings is not available.
PLAN OF DISTRIBUTION
Vista Gold is registering the shares on behalf of the selling security
holders. We will pay all expenses in connection with the registration of the
common shares being sold by the selling security holders, except for the fees
and expenses of any counsel and other advisors that any selling security holders
may employ to represent them in connection with the offering and any brokerage
or underwriting discounts or commissions paid to broker-dealers in connection
with the sale of the shares. Vista Gold will not receive any of the proceeds of
the sale of the shares offered by the selling security holders.
The selling security holders have not advised us of any specific plan for
distribution of the shares offered hereby, but it is anticipated that the shares
will be sold from time to time by the selling security holders or by pledgees,
donees, transferees or other successors in interest on a best efforts basis
without an underwriter. Such sales may be made on the American Stock Exchange,
the Toronto Stock Exchange, any exchange upon which our shares may trade in the
future, over-the-counter, or otherwise, at prices and at terms then prevailing
or at prices related to the then current market price, or in negotiated
transactions. The shares may be sold by one or more of the following, without
limitation:
o a block trade in which the broker or dealer so engaged will attempt
to sell the shares as agent but may position and resell a portion of
the block as principal to facilitate the transaction;
o purchases by a broker or dealer for its account pursuant to this
prospectus;
o ordinary brokerage transactions and transactions in which the broker
solicits purchases;
o through options, swaps or derivatives;
o in privately negotiated transactions;
o in transactions to cover short sales;
11
o through a combination of any such methods of sale; or
o in accordance with Rule 144 under the Securities Act, rather than
pursuant to this prospectus.
The selling security holders may sell their shares directly to purchasers
or may use brokers, dealers, underwriters or agents to sell their shares.
Brokers or dealers engaged by the selling security holders may arrange for other
brokers or dealers to participate. Brokers or dealers may receive commissions,
discounts or concessions from the selling security holders, or, if any such
broker-dealer acts as agent for the purchaser of shares, from the purchaser in
amounts to be negotiated immediately prior to the sale. The compensation
received by brokers or dealers may, but is not expected to, exceed that which is
customary for the types of transactions involved. Broker-dealers may agree with
a selling security holder to sell a specified number of shares at a stipulated
price per share, and, to the extent the broker-dealer is unable to do so acting
as agent for a selling security holder, to purchase as principal any unsold
shares at the price required to fulfill the broker-dealer commitment to the
selling security holder. Broker-dealers who acquire shares as principal may
thereafter resell the shares from time to time in transactions, which may
involve block transactions and sales to and through other broker-dealers,
including transactions of the nature described above, in the over-the-counter
market or otherwise at prices and on terms then prevailing at the time of sale,
at prices then related to the then-current market price or in negotiated
transactions. In connection with resales of the shares, broker-dealers may pay
to or receive from the purchasers of shares commissions as described above.
The selling security holders and any broker-dealers or agents that
participate with the selling security holders in the sale of the shares may be
deemed to be "underwriters" within the meaning of the Securities Act. In that
event, any commissions received by broker-dealers or agents and any profit on
the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.
From time to time the selling security holders may engage in short sales,
short sales against the box, puts and calls and other hedging transactions in
our securities, and may sell and deliver the shares in connection with such
transactions or in settlement of securities loans. These transactions may be
entered into with broker-dealers or other financial institutions. In addition,
from time to time, a selling security holder may pledge its shares pursuant to
the margin provisions of its customer agreements with its broker-dealer. Upon
delivery of the shares or a default by a selling security holder, the
broker-dealer or financial institution may offer and sell the pledged shares
from time to time.
We have advised the selling security holders that the anti-manipulation
rules of Regulation M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling security holders and their
affiliates. In addition, we will make copies of this prospectus available to the
selling security holders for the purpose of satisfying the prospectus delivery
requirements of the Securities Act.
Upon our being notified by a selling security holder that any material
arrangement has been entered into with a broker-dealer for the sale of the
shares through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to this
prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act, disclosing:
o the name of each such selling security holder and of the
participating broker-dealer(s);
12
o the number of shares involved;
o the price at which such shares were sold;
o any commissions paid or discounts or concessions allowed to such
broker-dealer(s); and
o other facts material to the transaction.
In order to comply with the securities laws of certain jurisdictions the
shares must be offered or sold only through registered or licensed brokers or
dealers. In addition, in certain jurisdictions, the shares may not be offered or
sold unless they have been registered or qualified for sale or an exemption is
available and complied with.
DESCRIPTION OF CAPITAL STOCK
We have authorized an unlimited number of common shares, no par value per
share, and an unlimited number of shares of preferred stock, no par value per
share. Our common shareholders are entitled to one vote per share on all matters
on which holders of common shares are entitled to vote and do not have any
cumulative voting rights. Subject to the rights of holders of shares of any
series of preferred stock, our common shareholders are entitled to receive such
dividends as our board of directors may declare, out of legally available funds.
Holders of common shares have no pre-emptive, conversion, redemption,
subscription or similar rights. If Vista Gold were to be liquidated, dissolved
or wound up, common shareholders would be entitled to share equally in any of
our assets legally available for distribution after we satisfy any outstanding
debts and other liabilities as well as any amounts that might be due to holders
of preferred stock, if any.
Our shares of authorized preferred stock are undesignated. Our board or
directors has authority, without seeking stockholder approval, to determine the
designation, preferences, rights and other privileges for any series of
preferred stock that the board of directors may designate, which could include
preferences on liquidation or as to dividends, voting rights including the right
to vote as a separate class on certain corporate events or to elect directors
designated by the holders of such series, and rights to conversion or redemption
of their shares and other matters. Our board of directors has not as of the date
of this prospectus designated and issued any shares of our preferred stock.
We have no charter or by-law provisions that would delay, defer or prevent
a change in control of Vista Gold.
LEGAL MATTERS
The validity of the common shares being offered hereby has been passed
upon for Vista Gold Corp. by Campion Macdonald of Whitehorse, Yukon Territory,
Canada.
EXPERTS
The consolidated financial statements of Vista Gold Corp. appearing in our
Annual Report on Form 10-KSB for the year ended December 31, 2001, have been
audited by PricewaterhouseCoopers LLP, independent auditors, as set forth in
their report thereon included therein and incorporated herein by reference. Such
consolidated financial statements are
13
incorporated herein by reference in reliance upon such report given on the
authority of such firm as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are a reporting company and file annual, quarterly and current reports,
proxy statements and other information with the Securities and Exchange
Commission. You may read and copy any document we file with the SEC at the
public reference facilities the SEC maintains at Room 1024, Judiciary Plaza, 450
Fifth Street, N.W., Washington, D.C. 20549. You may also obtain copies of such
material by mail from the Public Reference Section of the SEC (450 Fifth Street,
N.W., Washington, D.C. 20549) at prescribed rates. Please call the SEC at
1-800-SEC-0330 for further information about the operation of the public
reference rooms. Our SEC filings are also available at the SEC's website at
www.sec.gov.
This prospectus is part of a registration statement that we filed with the
SEC. The registration statement contains more information than this prospectus
regarding us and the securities, including certain exhibits and schedules. You
can obtain a copy of the registration statement from the SEC at any address
listed above or from the SEC's Internet site.
Our world wide web address is www.vistagold.com. We have not incorporated
by reference into this prospectus the information on our website, and you should
not consider it to be a part of this document. Our web address is included in
this document as an inactive textual reference only.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to "incorporate by reference" information contained in
documents that we file with them, which means that we can disclose important
information to you by referring you to those other documents. The information
incorporated by reference is an important part of this prospectus, and
information that we file later with the SEC will automatically update and
supersede this information. We incorporate by reference the documents listed
below and any future filings we will make with the SEC under Section 13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934:
(1) Our Annual Report on Form 10-KSB (File No. 1-9025) for the year ended
December 31, 2001;
(2) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on
January 23, 2002;
(3) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on
February 1, 2002;
(4) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on March
20, 2002;
(5) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on April
29, 2002;
(6) Our Quarterly Report on Form 10-QSB (File No. 1-9025) for the quarter ended
March 31, 2002;
(7) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on May
22, 2002;
(8) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on May
30, 2002;
14
(9) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on June
17, 2002;
(10) Our Current Report on Form 8-K (File No. 1-9025) filed with the SEC on July
24, 2002;
(11) Our Quarterly Report on Form 10-QSB (File No. 1-9025) for the quarter ended
June 30, 2002;
(12) All our filings pursuant to the Securities Exchange Act of 1934 after the
date of filing the initial registration statement and prior to effectiveness of
the registration statement; and
(13) The description of our common shares contained in our registration
statement on Form 8-A (File No. 1-9025) filed with the SEC on January 4, 1988,
including any amendments or reports filed for the purpose of updating that
description. For the most recent description, please see "Description of Capital
Stock" in this prospectus.
You may request, orally or in writing, a copy of these documents, which
will be provided to you at no cost, by contacting:
Vista Gold Corp.
Suite 5, 7961 Shaffer Parkway
Littleton, Colorado 80127
Attention: John F. Engele, Vice President Finance and Chief Financial Officer
(720) 981-1185
You should rely only on the information contained in this prospectus,
including information incorporated by reference as described above, or any
supplement that we have referred you to. We have not authorized anyone else to
provide you with different information. You should not assume that the
information in this prospectus or any supplement is accurate as of any date
other than the date on the front of those documents or that any document
incorporated by reference is accurate as of any date other than its filing date.
You should not consider this prospectus to be an offer or solicitation relating
to the securities in any jurisdiction in which such an offer or solicitation
relating to the securities is not authorized. Furthermore, you should not
consider this prospectus to be an offer or solicitation relating to the
securities if the person making the offer or solicitation is not qualified to do
so, or if it is unlawful for you to receive such an offer or solicitation.
15
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following is a list of the expenses to be incurred by Vista Gold in
connection with the preparation and filing of this Registration Statement. All
amounts shown are estimates except for the SEC registration fee. We will pay all
expenses in connection with the distribution of the common shares being
registered hereby, except for the fees and expenses of any counsel and other
advisors that any selling security holders may employ to represent them in
connection with the offering and any brokerage or underwriting discounts or
commissions paid to broker-dealers in connection with the sale of the shares.
SEC Registration Fee ............................. $ 2,870
Printing and Engraving Expenses .................. $ 1,000
Accountants' Fees and Expenses ................... $ 1,000
Legal Fees and Expenses .......................... $10,000
Transfer Agent Fees and Expenses ................. $ 500
Miscellaneous .................................... $ 700
-------
Total Expenses .............................. $16,070
=======
INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 7.1 of our By-law No. 1 provides that no director will be liable
for acts or omissions of any other director or any officer or employee, or for
any loss, damage or expense sustained by Vista Gold through: defects in title to
any property acquired by us or on our behalf; or for losses or damages sustained
by us in connection with investment of our funds or property (including losses
or damages arising from bankruptcy, insolvency or other tortious acts of an
entity with which such funds or property are deposited); or for any loss caused
by an error of judgment or oversight on the part of such director; or for any
other liability that the director may incur in his capacity as director, except
for liabilities occasioned by the director's own willful neglect or default.
This Section also provides that our directors and officers must act in
accordance with the Business Corporations Act (Yukon Territory) (the "Act") and
regulations thereunder, and will not be relieved from liability for any breach
of such Act or regulations.
Section 7.2 of our By-law No. 1 provides that, subject to limitations
contained in the Act, and provided the indemnitee is fairly and reasonably
entitled to be indemnified by us, we will indemnify our directors and officers,
including former directors and officers or persons acting at the request of
Vista Gold as a director or officer of a corporation of which Vista Gold is or
was a shareholder or creditor (or a person who undertakes or has undertaken any
liability on behalf of Vista Gold or any such other corporation), and heirs and
legal representatives of such persons, against all costs and expenses, including
amounts paid to settle an action or satisfy a judgment, reasonably incurred by
such person in respect of any civil, criminal or administrative action or
proceeding to which such person is made a party by reason of being or having
been a director or officer of Vista Gold or any such other corporation, if:
o he acted honestly and in good faith with a view to the best
interests of Vista Gold; and
o in the case of a criminal or administrative action or proceeding
that is enforced by a monetary penalty, he had reasonable grounds
for believing that his conduct was lawful.
16
Section 7.3 of our By-law No. 1 provides that, subject to limitations
contained in the Act, we may purchase and maintain insurance for our directors
and officers as determined by our Board of Directors. As discussed below, Vista
Gold does maintain such insurance.
Subsection (1) of Section 126 of the Act provides that except in respect
of an action by or on behalf of the corporation or body corporate to procure a
judgment in its favor, a corporation may indemnify a director or officer of the
corporation, a former director or officer of the corporation or a person who
acts or acted at the corporation's request as a director or officer of a body
corporate of which the corporation is or was a shareholder or creditor, and his
heirs and legal representatives (collectively, a "Person"), against all costs,
charges and expenses, including an amount paid to settle an action or satisfy a
judgment, reasonably incurred by him in respect of any civil, criminal or
administrative action or proceeding to which he is made a party by reason of
being or having been a director or officer of that corporation or body
corporate, if:
(a) he acted honesty and in good faith with a view to the best
interests of the corporation; and
(b) in the case of a criminal or administrative action or
proceeding that is enforced by a monetary penalty, he had
reasonable grounds for believing that his conduct was lawful.
A corporation may with the approval of the Supreme Court of the Yukon
Territory (the "Court") indemnify a Person in respect of an action by or on
behalf of the corporation or body corporate to procure a judgment in its favor,
to which he is made a party by reason of being or having been a director or an
officer of the corporation or body corporate, against all costs, charges and
expenses reasonably incurred by him in connection with the action if he fulfills
the conditions set out in paragraphs (1)(a) and (b) of Section 126 of the Act.
Notwithstanding anything in Section 126 of the Act, a Person is entitled
to indemnity from the corporation in respect of all costs, charges and expenses
reasonably incurred by him in connection with the defense of any civil, criminal
or administrative action or proceeding to which he is made a party by reason of
being or having been a director or officer of the corporation or body corporate,
if the person seeking indemnity:
(a) was substantially successful on the merits in his defense of
the action or proceeding;
(b) fulfills the conditions set out in paragraphs (1)(a) and (b)
of Section 126 of the Act; and
(c) is fairly and reasonably entitled to indemnity.
A corporation may purchase and maintain insurance for the benefit of any
Person against any liability incurred by him:
(a) in his capacity as a director or officer of the corporation,
except when the liability relates to his failure to act
honestly and in good faith with a view to the best interests
of the corporation; or
(b) in his capacity as a director or officer of another body
corporate if he acts or acted in that capacity at the
corporation's request, except when the liability
17
relates to his failure to act honestly and in good faith with
a view to the best interests of the body corporate.
A corporation or a Person may apply to the Court for an order approving an
indemnity under Section 126 of the Act and the Court may so order and make any
further order it thinks fit, including an order that notice be given to any
interested person.
Vista Gold indemnifies its directors and executive officers, as well as
their heirs and representatives, pursuant to indemnification agreements it has
entered into with each such director and executive officer, against all
liabilities and obligations, including legal fees and costs of investigation and
defense of claims, as well as amounts paid to settle claims or satisfy
judgments, that these directors and officers may incur in such capacities. While
these agreements provide that Vista Gold will indemnify such director or officer
regardless of conduct or fault of that person, the agreements also provide that
we may only make such indemnification payments as permitted by applicable law.
The agreements provide that Vista Gold's obligations under the agreements are
not diminished or otherwise affected by, among other things, any officers'
liability insurance placed by or for the benefit of the indemnitee, Vista Gold
or any entity related to either.
In addition, Vista Gold maintains directors' and officers' liability
insurance which insures against liabilities that its directors and officers may
incur in such capacities.
Reference is made to "Undertakings," below, for Vista Gold's undertakings
in this registration statement with respect to indemnification of liabilities
arising under the Securities Act of 1933, as amended.
EXHIBITS.
Exhibit
Number Description of Document
------ -----------------------
5 Opinion of Campion Macdonald (including the
consent of such firm) regarding the legality of
the securities being offered
23.1 Consent of Campion Macdonald (included as part
of Exhibit 5 hereto)
23.2 Consent of PricewaterhouseCoopers LLP,
independent auditors
23.3 Consent of Mine Reserve Associates, Inc. *
23.4 Consent of Mineral Resources Development, Inc.
24 Powers of Attorney *
* Incorporated by reference to the Registrant's Registration Statement on
Form S-3, as filed with the Commission on June 26, 2002.
UNDERTAKINGS.
The undersigned Registrant hereby undertakes:
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1. To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement to include any material
information with respect to the plan of distribution not previously disclosed in
the registration statement or any material change to such information in the
registration statement.
2. For the purpose of determining any liability under the Securities Act,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
3. To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the
offering.
4. Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements of filing on Form S-3 and has duly caused this Amendment No. 1 to
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized in Littleton, Colorado, on August 14, 2002.
VISTA GOLD CORP.
Registrant
By: /s/ Ronald J. McGregor
--------------------------------------
Ronald J. McGregor
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Amendment
No. 1 to Registration Statement has been signed by the following persons in the
capacities and on the dates stated.
Signature Title Date
--------- ----- ----
/s/ Ronald J. McGregor President, Chief Executive Officer August 14, 2002
--------------------------- and Director (Principal Executive
Ronald J. McGregor Officer and Authorized
Representative in the United States)
/s/ John F. Engele Vice President Finance and Chief August 14, 2002
--------------------------- Financial Officer (Principal Financial
John F. Engele and Accounting Officer)
* Director August 14, 2002
---------------------------
John M. Clark
* Director August 14, 2002
---------------------------
Michael B. Richings
* Director August 14, 2002
---------------------------
A. Murray Sinclair
* Director August 14, 2002
---------------------------
C. Thomas Ogryzlo
Director
---------------------------
Robert A. Quartermain
By: /s/ John F. Engele
--------------------------------
John F. Engele, Attorney-in-Fact
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Exhibit
Number Description of Document
------ -----------------------
5 Opinion of Campion Macdonald (including the
consent of such firm) regarding the legality of
the securities being offered
23.1 Consent of Campion Macdonald (included as part
of Exhibit 5 hereto)
23.2 Consent of PricewaterhouseCoopers LLP,
independent auditors
23.3 Consent of Mine Reserve Associates, Inc. *
23.4 Consent of Mineral Resources Development, Inc.
24 Powers of Attorney *
* Incorporated by reference to the Registrant's Registration Statement on
Form S-3, as filed with the Commission on June 26, 2002.
21