The following excerpts are from a press release at http://biz.yahoo.com/prnews/070510/nyth141.html?.v=83 from Thursday, May 10, 2007.
NEW YORK, May 10 /PRNewswire/ -- The American Stock Exchange® (Amex®) today listed the common stock of Allied Nevada Gold Corp. under the ticker symbol ANV.
Vista Gold Corp. (Amex: VGZ - News) and its shareholders own approximately 70% of a new Nevada gold mining company - Allied Nevada Gold Corp., which was formed by combining Nevada property interests of Vista Gold Corp. and Carl and Janet Pescio. Vista Gold Corp. has created Allied Nevada as a platform for a major new Nevada-focused mining company with a large land package, a pipeline of development projects and the Hycroft mine which is positioned for early resumption of gold production.
"Allied Nevada Gold Corp.'s shareholders will benefit from a committed board of directors, a seasoned management team and the vision of Vista Gold Corp. and of Carl Pescio in identifying and acquiring exploration properties in Nevada," said Scott Caldwell, President and CEO of Allied Nevada. "With these exciting assets, and a listing on the Amex, I am confident that we will increase our shareholders' value by broadening our visibility and liquidity within the investment community." The specialist for Allied Nevada Gold Corp. will be HBH Specialists, LLC.
Terms of arrangement between Vista Gold Corp. and Allied Nevada Gold Corp. are disclosed in a press release also from Thursday, May 10, at http://biz.yahoo.com/prnews/070510/lath068.html?.v=93. Excerpts:
DENVER, May 10 /PRNewswire-FirstCall/ -- Vista Gold Corp. (Amex: VGZ; Toronto) ("Vista") and Allied Nevada Gold Corp. (Amex: ANV; Toronto) ("Allied Nevada") announce that the previously announced plan of arrangement involving Vista, Allied Nevada and Carl and Janet Pescio (the "Arrangement") closed today. The transaction resulted in the acquisition by Allied Nevada of Vista's Nevada properties and the Nevada mineral assets of Carl and Janet Pescio. Of the 38,933,055 shares of common stock ("Allied Nevada Shares") issued by Allied Nevada as part of the transaction, 12,000,000 were issued to Carl and Janet Pescio as partial consideration for the acquisition of their Nevada mineral assets and 26,933,055 were issued to Vista in accordance with the Arrangement. Of the 26,933,055 Allied Nevada Shares issued to Vista, 25,403,207 shares will be available for distribution to shareholders of Vista, subject to applicable withholding taxes (as described in the management information and proxy circular of Vista dated October 11, 2006) and after Vista retains approximately 1.5 million shares to facilitate the payment of any taxes payable by Vista in respect of the Arrangement. Accordingly, for each existing share of Vista that a shareholder owned immediately prior to the effective time of the Arrangement, they will receive, subject to applicable withholding taxes (a) one new share of Vista, (b) 0.794 of an Allied Nevada Share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada.
Comment:
Since the beginning of trading of Allied Nevada on Thursday, May 20, both Vista Gold and Allied Nevada shares came down significantly, maybe partially in sympathy with the present bad gold stock sentiment. However, the two companies together still command a higher combined share price than Vista had as a sole company before Thursday. While it may take some time for the share price of both companies to adjust to the new conditions for the time being investors seem to like the deal.
Vista Gold Corp. has completely overhauled its website at http://www.vistagold.com/
The Allied Nevada Gold Corp. website will be available shortly at http://www.alliednevada.com/.
( Nevada Gold Investor @ http://nevadagoldinvestor.blogspot.com )
( Servicios HidroGIS @ http://www.servicioshidrogis.com )
