Vista Gold, Pan Asia team up to develop Awak Mas gold project

Denver-based firm Vista Gold Corp. announced Monday that its wholly-owned subsidiary, Vista Gold (Barbados) Corp., has signed a Joint Venture Agreement with Pan Asia Resources Corporation with respect to the development of the Awak Mas gold project in South Sulawesi.

The Joint Venture Agreement provides Pan Asia, a privately held resource development company, with the opportunity to earn a 60% interest in the Awak Mas project by (i) expending US$3 million on the project within the next 30 months, (ii) completing an environmental impact assessment and feasibility study (in compliance with the Canadian Securities Administrators' National Instrument 43-101 ? Standards of Disclosure for Mineral Projects), and (iii) issuing to Vista two million shares of Pan Asia and the right to purchase up to an additional two million shares of Pan Asia in the event of an initial public offering of Pan Asia shares.

Pan Asia has informed Vista that it intends to immediately commence the studies relating to the environmental impact assessment and may undertake some additional drilling prior to re-estimating the gold resources for the Awak Mas project under current market conditions. Under the terms of the Joint Venture Agreement, Vista will retain its controlling interest in the Awak Mas project until Pan Asia completes the earn-in conditions described above.

Vista reported in 2007 that the Awak Mas project was estimated to contain 1.6656 million ounces of gold with measured resources stood at 296,000 ounces, based on a cutoff grade of 0.5 g Au per tonne. (alex)