Having failed to meet production targets, Mineral Ridge Resources, a wholly owned subsidiary of
The announcement comes after talks with the company’s major creditor, Dresdner Bank, collapsed.
Since Mineral Ridge acquired it in October 1998, the open-pit, heap-leach operation has been beset with mechanical difficulties in the plant and discrepancies between minable reserves and production figures.
Mineral Ridge owed US$14 million before defaulting on the loan to Dresdner in early December. Although Mineral Ridge is wholly owned by Vista, the loan was not guaranteed by Vista, and there is no recourse to the company for any amount owed under the loan.
The subsidiary hopes to go before the courts as soon as possible to propose an orderly shutdown and reclamation.
Meanwhile, in Bolivia, Vista is negotiating the sale of the Capa Circa underground gold mine to local miners for an undisclosed amount.
Vista posted a loss of US$1.8 million (or 2 per share) in the third quarter, compared with a loss of US$969,000 (1 per share) a year ago. For the first nine months of the year, it recorded a loss of US$9.3 million (10 per share), compared with earnings of US$1.7 million (2 per share) in the corresponding period of 1998.
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