The shareholder approvals cover three separate transactions. In the first, a private placement, Stockscape.com Technologies will suscribe for 21.6 million purchase warrants exercisable at US7.5 until the beginning of February 2007.
In the second, a group of investors will subscribe for convertible debentures totalling just under US$2.8 million, and California-based investment house Global Resource Investments will take up 4.3 million special warrants.
The convertible debentures bear only nominal interest (1% annually), but they can be turned into units consisting of one share and one purchase warrant (exercisable at US7.5 until mid-March 2007). The conversion price is US5.13 per share, and holders have until the end of September 2003 to convert them.
In the third transaction, the company’s common shares will be consolidated at a 20-to-1 ratio.
The company expects to make the conversion some time this month and to have the consolidated shares trading soon.
In a related development, a lawsuit filed by U.S. Fidelity & Guarantee against Vista Gold and five related companies over reclamation bonding at the closed Mineral Ridge mine in Nevada has been settled. Settlement of the suit was a condition of the private placement.
Under the terms of the settlement, Vista pays US$791,433 to the U.S. Bureau of Land Management to discharge the reclamation obligations at Mineral Ridge, which had been left hanging by the bankruptcy of Vista’s operating subsidiary.
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