Repadre ponies up for NSR — on Vista’s Bolivian properties

Repadre International, a subsidiary of Repadre Capital (RPD-T), has signed a US$1-million deal with Vista Gold (VGZ-T) to acquire a net smelter return (NSR) royalty on future production from the Amayapampa and Capa Circa gold properties in Bolivia.

For its cut — a 2% NSR on the first 425,000 oz. gold produced, dropping to 1% thereafter — Repadre will pay Vista US$500,000 and raise $500,000 in a private placement on the American Stock Exchange, on which Vista is also listed.

The capital cost of the project is estimated at US$20 million. Proceeds from the financing will be used for additional exploration, development, and care and maintenance.

At the Amayapampa property, reserves amenable to open-pit mining stand at 8.9 million tonnes grading 1.84 grams gold per tonne, equivalent to 527,000 contained ounces. Production is projected at 30,000 oz. per year; startup is expected late this year, but is contingent upon the price of gold recovering to US$325 per oz.

If the Capa Circa mine, a past-producing underground operation 6 miles from Amayapampa, is reopened during the mine life of Amayapampa, it could contribute an additional 10,000 oz. gold per year.