Vista Gold further farms-out at S. Sulawesi gold project

Denver-based firm Vista Gold Corp. announced Tuesday that its wholly-owned subsidiary, Vista Gold (Barbados) Corp entered into an acquisition of additional option agreement with Pan Asia Resources Corp.

The Additional Option Agreement provides Pan Asia with the opportunity to earn an additional 20% interest in the Corporation's Awak Mas gold project in South Sulawesi after it has earned a 60% interest in the project pursuant to the JV Agreement.

Pan Asia can acquire the additional 20% interest by (a) making cash payments totaling US$2,500,000 over the next nine months; (b) issuing shares with a value equal to US$2,000,000 or making a cash payment of US$2,000,000 within 12 months, depending on whether Pan Asia completes an initial public offering; and (c) carrying out a 5,000 meter drilling program in an area outside of the current project resource area within 18 months.

As previously announced, in December 2009, Pan Asia and Vista Barbados executed a joint venture agreement allowing Pan Asia to earn a 60% interest in the project by: (a) expending US$3,000,000 on the project within a specified period of time; (b) completing an environmental impact assessment and feasibility study (in compliance with Canadian National Instrument 43-101); and (c) issuing to Vista 2,000,000 shares of Pan Asia and the right to purchase up to an additional 2,000,000 shares of Pan Asia in the event Pan Asia completes an initial public offering of its shares.

Once Pan Asia completes the undertakings required in the JV Agreement and the Additional Option Agreement, Pan Asia will hold an 80% interest in the Awak Mas gold project.

Fred Earnest, Vista's President and COO of the Corporation said: "Pan Asia has demonstrated their ability to advance the Awak Mas gold project and conduct business in Indonesia effectively. If Pan Asia is successful in developing the Awak Mas gold project we will have the opportunity to participate with a 20% direct interest in the project and through our ownership in Pan Asia.

Currently we own 4.4% of the issued and outstanding shares of Pan Asia. The Additional Option Agreement will provide some additional capital for Vista and further enable us to maintain our focus on the development of the Mt. Todd gold project in Australia, finalizing the permitting at the Concordia gold project and progressing our new exploration program we have initiated at our Guadalupe de los Reyes exploration project in Mexico." (romel)