Form 8-K VISTA GOLD CORP For: Mar 02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 

_________________

FORM 8-K 

CURRENT REPORT 

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: February 24, 2015

(Date of earliest event reported)

VISTA GOLD CORP.
(Exact Name of Registrant as Specified in Charter)

British Columbia, Canada
(State or Other Jurisdiction of Incorporation)

7961 Shaffer parkway, suite 5, littleton, colorado 80127

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code:   (720) 981-1185

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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Item 1.01 Entry into a Material Definitive Agreement

 

On February 24, 2015,  the Registrant and its wholly owned subsidiary, Vista Gold U.S. Inc. (“Vista US”), entered into an  agency agreement (the “Agency Agreement”) under which the agent (the “Agent”) has arranged to sell up to 8,000,000 common shares of Midas Gold Corp.  (“Midas”) held by Vista US (the “Midas Shares”) at a price of Cdn$0.46 per Midas Share for aggregate gross proceeds of up to Cdn$3,680,000 (the “Sale”).  A portion of the Midas Shares may be sold pursuant to a finder’s agreement between Vista US and a finder (the “Finder”) on the same offering terms.  In consideration for the services to be provided by the Agent, and if applicable, the Finder, in connection with sale of the Midas Shares, the Agent or the Finder (as applicable) will receive a cash fee equal to 4% of the gross proceeds from the sale of the Midas Shares. 

 

Vista and Vista US have agreed that following the closing of the Sale, they will not sell any of their remaining shares of Midas for a period of 6 months following closing. 

 

Vista currently holds, directly and indirectly through Vista US, an aggregate of 15,802,615 common shares of Midas, representing 11.2% of the outstanding common share of Midas.  Following the sale of the Midas Shares, Vista’s holding would be reduced to 7,802,615 common shares of Midas, representing 5.5% of the outstanding common shares of Midas.

 

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and may not be offered or sold absent such registration or pursuant to an exemption from such registration requirements.  This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein in the United States.

 

 

 Item 7.01  Regulation FD

 

On February 25, 2015, the Registrant issued a press release announcing that it intends to file with Canadian securities regulatory authorities a notice of its intention to sell up to 8,000,000 common shares of Midas Gold Corp.  A copy of the press release is attached to this report as Exhibit 99.1. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.  The information set forth in Item 7.01 of this report shall not be deemed an admission as to the materiality of any information in this report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

 

Item 9.01  Exhibits

 

Exhibit No.Description

10.1Agency Agreement

10.2Finder’s Agreement

99.1Press Release dated February 25,  2015*

 

*The Exhibits relating to Item 7.01 is intended to be furnished to, not filed with, the SEC pursuant to Regulation FD.

 

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SIGNATURES 

 

In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

EXHIBIT INDEX

 

Exhibit No.Description

10.1Agency Agreement

10.2Finder’s Agreement

99.1Press Release dated February 25, 2015*

 

*The Exhibits relating to Item 7.01 is intended to be furnished to, not filed with, the SEC pursuant to Regulation FD.

 

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Exhibit 10.1

 

AGENCY AGREEMENT

February 24, 2015

Vista Gold U.S. Inc.
Vista Gold Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado
80127

Attention:John F. Engele, Chief Financial Officer

Dear Sirs:

Haywood Securities Inc. (“Haywood”), understands that Vista Gold U.S. Inc. (the "Selling Shareholder") proposes to sell up to 8,000,000 common shares of Midas Gold Corp. (each, a "Share" and collectively, the "Shares").

Upon and subject to the terms and conditions set forth herein, the Agent hereby agrees to act, and upon acceptance hereof the Selling Shareholder hereby appoints the Agent, as the Selling Shareholder's sole and exclusive agent to offer the Shares at a price of $0.46 per Share (the "Offering Price") for aggregate gross proceeds of up to $3,680,000 to the Selling Shareholder and to use their commercially reasonable efforts to secure purchasers therefor, provided that the Agent shall be under no obligation to purchase any of such Shares as principal.

The offering of the Shares by the Selling Shareholder described in this Agreement is hereinafter referred to as the "Offering".

In consideration of the Agent’s services to be rendered in connection with the Offering, the Selling Shareholder shall pay to the Agent a cash fee (the "Agency Fee") in an amount equal to 4% of the gross proceeds received by the Selling Shareholder from the sale of the Shares by the Agent.

The additional terms and conditions of this Agency Agreement (the "Agreement") are set forth below.

In this Agreement:

"Agency Fee" has the meaning given to that term on page 1 of this Agreement;

"Agent" has the meaning given to that term on page 1 of this Agreement;

"Agent’s Expenses" has the meaning given to that term in section 4.1;

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"Applicable Securities Laws" means all applicable securities laws of Canada and the provinces and territories of Canada, U.S. Securities Laws and the respective rules and regulations under such laws together with applicable published national, multilateral and local policy statements, instruments, notices, blanket orders and rulings of the applicable securities regulatory authorities;

"Business Day" means a day, other than a Saturday, a Sunday or a statutory holiday in Vancouver, British Columbia, on which banks are open generally to conduct commercial business in Vancouver, British Columbia;

"Closing" means the closing of the sale of the Shares pursuant to the terms of this Agreement;

"Closing Date" means the date on which the Closing occurs;

"distribution" has the meaning given to that term in the Securities Act (British Columbia);

  “Haywood” means Haywood Securities Inc.;

"Lien" means any mortgage, charge, pledge, hypothecation, security interest, assignment, lien (statutory or otherwise), charge, title retention agreement or arrangement, restrictive covenant or other encumbrances or adverse claims or demands of any nature whatsoever, including any arrangement or condition which, in substance, secures payment or performance of an obligation;

 “Locked Up Shares” has the meaning given to that term in Section 8.1(a);

“Lock Up Period” means if at least 8,000,000 Shares are sold on the Closing Date, the period from the Closing Date to the date that is 6  months after the Closing Date;

"material change" has the meaning given to that term in the Securities Act (British Columbia);

"material fact" has the meaning given to that term in the Securities Act (British Columbia);

“Midas” means Midas Gold Corp.;

"Offering" has the meaning given to that term on page 1 of this Agreement;

"Offering Price" has the meaning given to that term on page 1 of this Agreement;

"Purchasers" means, collectively, each of the purchasers of Shares arranged by the Agent, pursuant to the Offering, including, if applicable, the Agent;

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“Qualified Institutional Buyer” means a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act;

"SEDAR" means the computer system for the transmission, receipt, acceptance, review and dissemination of documents filed in electronic format known as the System for Electronic Document Analysis and Retrieval;

"Selling Shareholder" has the meaning given to that term on page 1 of this Agreement;

"Shares" has the meaning given to that term on page 1 of this Agreement; 

 “take-over bid” has the meaning given to that term in the Securities Act (British Columbia);

"Time of Closing" means the time on the Closing Date at which the Closing occurs;

"trade" has the meaning given to that term in the Securities Act (British Columbia);

"TSX" means the Toronto Stock Exchange;

“United States” means the United States of America, its territories and possessions, any state of the United States and the District of Columbia;

“U.S. Affiliates” means the U.S. registered broker-dealer affiliate of the Agent;

“U.S. Person” means a U.S. person as that term is defined in Rule 902(k) of Regulation S under the U.S. Securities Act;

“U.S. Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations made thereunder;

“U.S. Securities Laws” means the securities laws of the United States, its territories and possessions, any state of the United States and the District of Columbia; and

“Vista” means Vista Gold Corp.

All references to dollar figures in this Agreement are to Canadian dollars.

The Selling Shareholder represents and warrants to the Agent, and acknowledges that the Agent is relying upon such representations and warranties in entering into this Agreement, that:

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the Selling Shareholder is duly incorporated and is and will be at the Time of Closing up-to-date in all material corporate filings and in good standing under applicable legislation and has all requisite corporate power and authority to carry on its business as now conducted and to own, lease and operate its properties and assets, and to enter into and deliver this Agreement and to perform its obligations hereunder including, as applicable, to own and sell the Shares to be sold under the Offering;

this Agreement has been or will, as of the Time of Closing, be duly and validly executed and delivered by the Selling Shareholder and this Agreement shall constitute a legal, valid and binding obligation of the Selling Shareholder enforceable against the Selling Shareholder in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting the rights of creditors generally and except as limited by the application of equitable principles when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the ability to sever unenforceable terms, may be limited by applicable law;

none of the execution and delivery or performance of this Agreement by the Selling Shareholder and the consummation of the transactions contemplated by this Agreement by the Selling Shareholder will result in a breach of or violation of any of the terms or provisions of, or constitute a default under (whether after notice or lapse of time or both), (i) any statute, rule or regulation applicable to the Selling Shareholder; (ii) any mortgage, note, indenture, contract, agreement, joint venture, partnership, instrument, lease, voting trust agreement, shareholders' agreement or other document to which such Selling Shareholder is a party or by which it is bound or to which any of its property is or may be subject; or (iii) any judgment, decree or order binding the Selling Shareholder or a material portion of the property or assets thereof;

there is no action, suit or proceeding pending or, to the knowledge of the Selling Shareholder, threatened against the Selling Shareholder which questions the validity or enforceability of this Agreement or of any action taken or to be taken by the Selling Shareholder pursuant to or in connection with this Agreement;

the execution and delivery of this Agreement by the Selling Shareholder, the fulfillment of the terms hereof by the Selling Shareholder and the sale and delivery of the Shares at the Time of Closing does not and will not require (other than insider reporting requirements under the Applicable Securities Laws) any filings to be made, any notice provided to or the consent, approval, authorization, registration or qualification of or with any governmental authority, stock exchange, securities commission or other third party, except as have been obtained or such as may be required to be obtained by the Selling Shareholder or the Agent under Applicable Securities Laws, regulatory requirements or stock exchange regulations;

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the Selling Shareholder has held the Shares for at least four months prior to the date hereof;

no unusual effort has been made by the Selling Shareholder or, to the knowledge of the Selling Shareholder, by any other person, to prepare the market or to create a demand for the Shares;

the Selling Shareholder has no reasonable grounds to believe Midas is in default of securities legislation, as such term is defined in National Instrument 14-101 Definitions;

in making its decision to sell the Shares, the Selling Shareholder did not rely on any material information concerning Midas which was not publicly disclosed;

there are no actions, proceedings or investigations current, pending or, to the best of the knowledge of the Selling Shareholder, threatened against or affecting the Selling Shareholder in relation to the Shares being sold by the Selling Shareholder;

as of the date hereof, no person, firm or corporation has any agreement or option, or right or privilege (whether pre-emptive or contractual) capable of becoming an agreement, for the purchase of any of the Shares, except as provided in the Loan Facility;

the Selling Shareholder is, as of the date hereof, and will be, at the Time of Closing and prior to delivery of the Shares to, or as directed by, the Agent, the legal and beneficial owner of the Shares;

at the Time of Closing and prior to delivery of the Shares to, or as directed by, the Agent, the Selling Shareholder will have good and marketable title to the Shares, free and clear of all Liens, including, without limitation, any restrictions on transfer or pre-emptive or similar rights;

at the Time of Closing and prior to delivery of the Shares to, or as directed by, the Agent, the Selling Shareholder will have full legal right, power, capacity and authorization, and any approval required by law, to sell, assign, transfer and deliver the Shares in the manner provided in this Agreement and upon delivery of and payment for the Shares hereunder the Purchasers will acquire good and marketable title to the Shares free and clear of any Lien and without any restrictions on the transfer thereof;

the Selling Shareholder has not withheld from the Agent any facts relating to the Shares and/or the Selling Shareholder which would be material to the Agent;  

other than the Agent pursuant to this Agreement, there is no person acting or purporting to act at the request of the Selling Shareholder who is entitled to any brokerage, agency or other fiscal advisory or similar fee in connection with the transactions contemplated herein;

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the operations of the Selling Shareholder are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements and money laundering statutes and the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Selling Shareholder with respect to the Money Laundering Laws is pending or, to the knowledge of the Selling Shareholder, threatened;

the Selling Shareholder has not, directly or indirectly: (i) made or authorized any contribution, payment or gift of funds or property to any official, employee or agent of any governmental agency, authority or instrumentality of any jurisdiction; or (ii) made any contribution to any candidate for public office, in either case where either the payment or the purpose of such contribution, payment or gift was, is or would be prohibited under the Canada Corruption of Foreign Public Officials Act (Canada) or the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a similar subject matter applicable to the Selling Shareholder and its operations, and will not use any portion of the proceeds from the sale of the Shares, in contravention of such legislation;

the Selling Shareholder makes the representations and warranties contained in Schedule “A” hereto, which are hereby incorporated by reference; and

the Selling Shareholder or, to the best knowledge of the Selling Shareholder, any director, officer, agent, employee, affiliate or person acting on behalf of the Selling Shareholder has not been or is not currently subject to any United States sanctions administered by the Office of Foreign Assets Control of the United States Treasury Department; and the Selling Shareholder will not directly or indirectly use any proceeds from the sale of the Shares or lend, contribute or otherwise make available such proceeds to the Selling Shareholder or to any affiliated entity, joint venture partner or other person or entity, to finance any investments in, or make any payments to, any country or person targeted by any of the sanctions of the United States.

The representations and warranties of the Selling Shareholder contained in this Agreement shall be true at the Time of Closing as though they were made at the Time of Closing and they shall survive the completion of the transactions contemplated under this Agreement and remain in full force and effect thereafter for the benefit of the Agent.

The Agent represents and warrants to the Selling Shareholder, and acknowledges that the Selling Shareholder is relying upon such representations and warranties in entering into this Agreement, that:

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the Agent is, and will remain so until the completion of the Offering, appropriately registered under Canadian Applicable Securities Laws so as to permit it to lawfully fulfil its obligations hereunder and the Agent is, and will remain so until the completion of the Offering, a member in good standing of the TSX;

the Agent will sell the Shares in accordance with Applicable Securities Laws and this Agreement and in relation to any sales to buyers that are, or are acting for the account or benefit of, U.S. Persons or persons in the United States only to Purchasers that are Qualified Institutional Buyers on a private placement basis, pursuant to an exemption available under the U.S. Securities Act and similar exemptions from any applicable securities laws of any state of the United States and in accordance with the terms, conditions, representations, warranties and covenants of the parties contained in Schedule “A” hereto, the provisions of which are agreed to by the Selling Shareholder, the Agent and the U.S. Affiliate, and which Schedule “A” forms part of this Agreement;

the Agent has good and sufficient right and authority to enter into this Agreement and complete its transactions contemplated under this Agreement on the terms and conditions set forth herein;

no unusual effort has been made by the Agent or, to the knowledge of the Agent, by any other person, to prepare the market or to create a demand for the Shares; and

the execution and delivery of this Agreement by the Agent, the fulfillment of the terms hereof by the Agent and the sale and delivery of the Shares at the Time of Closing does not and will not require (other than pursuant to insider reporting requirements under the Applicable Securities Laws) any filings to be made, any notice provided to or the consent, approval, authorization, registration or qualification of or with any governmental authority, stock exchange, securities commission or other third party, except as have been obtained or such as may be required to be obtained by the Selling Shareholder or the Agent under Applicable Securities Laws, regulatory requirements or stock exchange regulations.

The representations and warranties of the Agent contained in this Agreement shall be true at the Time of Closing as though they were made at the Time of Closing and shall survive the completion of the transactions contemplated under this Agreement and remain in full force and effect thereafter for the benefit of the Selling Shareholder.

The Selling Shareholder covenants and agrees with the Agent that it shall: 

file, within three days after the completion of any trade of the Shares, an insider report prepared in accordance with Form 55-102F2 under National Instrument 55-102 System for Electronic Disclosure by Insiders (SEDI);

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use commercially reasonable efforts to do or perform all things reasonably required to be done or performed by it prior to the Time of Closing to satisfy all conditions precedent to the delivery of the Shares;

not at any time, directly or indirectly, take any action intended, or which might reasonably be expected, to cause or result in, or which will constitute, stabilization or manipulation of the price of the securities of Midas to facilitate the sale or resale of any of the Shares;

prior to the Time of Closing, use commercially reasonable efforts to fulfil to the reasonable satisfaction of the Agent all legal requirements (including, without limitation, compliance with Applicable Securities Laws) required to be fulfilled by the Selling Shareholder to enable the Shares to be sold in Canada free of trade restrictions;

use commercially reasonable efforts to perform all of the obligations to be performed by it under this Agreement; and

from and including the date of this Agreement through to and including the Time of Closing, use commercially reasonable efforts to do all such acts and things necessary to ensure that all of the representations and warranties of the Selling Shareholder contained in this Agreement remain materially true and correct and not do any such act or thing that would render any representation or warranty of the Selling Shareholder contained in this Agreement materially untrue or incorrect.

The Agent covenants and agrees with the Selling Shareholder that:

it shall advise the Selling Shareholder within one Business Day of each trade of the Shares; and

it shall fulfil all legal requirements (including, without limitation, compliance with Applicable Securities Laws) to be fulfilled by it in connection with the Offering.

The Agency Fee may be deducted by the Agent from the proceeds of the sale of the Shares.

The following are conditions to the obligations of the Agent to complete the transactions contemplated in this Agreement, which conditions may be waived in writing in whole or in part by the Agent in its sole discretion:

no order ceasing or suspending trading in any securities of Midas, or ceasing or suspending trading by the Selling Shareholder, or prohibiting the trade or distribution of the Shares will have been issued and no proceedings for such purpose, to the best of the knowledge of the Selling Shareholder, will be pending or threatened;

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the Agent not having exercised any rights of termination set forth in this Agreement;

Midas shall have agreed to the removal of the United States restrictive legend on the certificates representing the Shares, such legend shall have been removed from the certificates and certificates representing the Shares without such restrictive legend shall be available for delivery at the Time of Closing;

the Selling Shareholder will have, as of the Time of Closing, complied with all of its material covenants and agreements contained in this Agreement; and

the representations and warranties of the Selling Shareholder contained in this Agreement will be materially true and correct as of the Time of Closing as if such representations and warranties had been made as of the Time of Closing.

The Selling Shareholder and the Agent shall cause the Closing to occur by March  2,  2015 or such other date as may be agreed by the Selling Shareholder and the Agent.

If the Selling Shareholder has satisfied all of its obligations under this Agreement, on the Closing, the Agent shall pay to or as directed by the Selling Shareholder the gross proceeds of the sale of the Shares, less the Agency Fee.

The Selling Shareholder and Vista (both defined as the “Indemnitor”) agree to indemnify and hold harmless the Agent, its respective subsidiaries and affiliates and directors, officers, employees, partners, agents, each other person, if any, controlling any Agent, or any of its subsidiaries, affiliates and each shareholder of the Agent (collectively, the "Indemnified Parties" and individually, an "Indemnified Party"), from and against any and all losses (other than loss of profits), expenses, claims (including securityholder actions, derivative or otherwise), actions, damages and liabilities, joint or several, including without limitation the aggregate amount paid in reasonable settlement, or in settlement with the Indemnitor's consent (such consent not to be unreasonably withheld) of any actions, suits, proceedings, investigations or claims and the reasonable fees and expenses of their counsel (collectively, the "Losses") that may be suffered by, imposed upon or asserted against an Indemnified Party as a result of, in respect of, connected with or arising out of  any action, suit, proceeding, investigation or claim that may be made or threatened by any person or in enforcing this indemnity (collectively the "Claims") insofar as the Claims relate to, are caused by, result from, arise out of or are based upon, directly or indirectly, the transactions contemplated in this Agreement. The Indemnitor agrees to waive any right the Indemnitor may have of first requiring an Indemnified Party to proceed against or enforce any other right, power, remedy or security or claim payment from any other

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person before claiming under this indemnity. The Indemnitor also agrees that no Indemnified Party shall have any liability (whether direct, indirect, contractual or extra-contractual) to the Indemnitor or any person asserting Claims on behalf of or in right of the Indemnitor for or in connection with the transactions contemplated in this Agreement except to the extent any Losses suffered by the Indemnitor are determined by a court of competent jurisdiction in a final judgment that has become non-appealable to have resulted primarily from the negligence or willful misconduct of such Indemnified Party.  The Indemnitor will not, without the prior written consent of the Agent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any Claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Party is a party thereto) unless the Indemnitor has acknowledged in writing that the Indemnified Parties are entitled to be indemnified in respect of such Claim and such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Party from any liabilities arising out of such Claim without any admission of negligence, misconduct, liability or responsibility by or on behalf of any Indemnified Party.

Promptly after receiving notice of a Claim against any Indemnified Party or receipt of notice of the commencement of any investigation which is based, directly or indirectly, upon any matter in respect of which indemnification may be sought from the Indemnitor, any such Indemnified Party will notify the Indemnitor in writing of the particulars thereof, provided that the omission to so notify the Indemnitor shall not relieve the Indemnitor of any liability which the Indemnitor may have to any Indemnified Party except and only to the extent that any such delay in or failure to give notice as herein required prejudices the defense of such Claim or results in any material increase in the liability which the Indemnitor has under this indemnity. The Indemnitor shall have fourteen (14) days after receipt of the notice to undertake, conduct and control, through counsel of its own choosing (which counsel shall be reasonably satisfactory to the applicable Agent) and at its own expense, the settlement or defense of the Claim.  If the Indemnitor undertakes, conducts and controls the settlement or defense of the Claim, the relevant Indemnified Parties shall have the right to participate in the settlement or defense of the Claim.

The indemnity provided for in this Section 7  shall not apply to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall determine that such Losses to which the Indemnified Party may be subject were primarily caused by the negligence or willful misconduct of the Indemnified Party.

If for any reason the foregoing indemnity is unavailable (other than in accordance with the terms hereof) to the Indemnified Parties (or any of them) or insufficient to hold each of them harmless in respect of a Claim, the Indemnitor shall contribute to the amount paid or payable by the Indemnified Parties as a result of such Claim in such proportion as is appropriate to reflect the relative benefits received by the Indemnitor on the one hand and the Indemnified Parties on the other hand, or if such allocation is determined by a court of competent jurisdiction to be unavailable, the Indemnitor shall contribute to such amount paid by any such Indemnified Party in such proportion as is appropriate to reflect both the relative fault of the

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Indemnitor and the Indemnified Parties as well as any relevant equitable considerations; provided that the Indemnitor shall in any event contribute to the amount paid or payable by the Indemnified Parties as a result of such Claim any excess of such amount over the amount of the fees actually received by the Agent under this Agreement.

The Agent hereby accepts, on behalf of the other Indemnified Parties, the Indemnitor's covenants under this indemnity with respect to such persons and the Agent agrees to act as agent and representative on behalf of such persons in connection with the enforcement of same.

The Indemnitor also agrees to reimburse the Agent for the time reasonably spent by the Agent’s personnel in connection with any Claim at their normal per diem rates. The Agent may retain counsel to separately represent the Agent in the defense of a Claim, which shall be at the Indemnitor's expense if (a) the Indemnitor does not promptly assume the defense of the Claim no later than fourteen (14) days after receiving actual notice of the Claim, (b) the Indemnitor agrees to separate representation or (c) the Agent is advised by written legal opinion of counsel that there is an actual or potential conflict in the Indemnitor's and the Agent's interests or additional defenses are available to the Agent which makes representation by the same counsel inappropriate.

The obligations of the Indemnitor hereunder are in addition to any liabilities which the Indemnitor may otherwise have to the Agent or any other Indemnified Party. All obligations and liabilities hereunder of each entity included in the definition of the Indemnitor shall be joint and several and as a principal and not as a surety.

During the Lock Up Period, the Selling Shareholder and Vista shall not, without the prior written consent of the Agent, directly or indirectly:

offer, sell, contract to sell, pledge, lend, swap, grant or sell any common shares of Midas owned by the Selling Shareholder or Vista immediately following the Closing (the “Locked Up Shares”);

make any short sale, engage in any hedging transaction, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Locked Up Shares, whether any such transaction is to be settled by delivery of Locked Up Shares, other securities, cash or otherwise; or

to publicly announce an intention to effect any transaction specified in paragraphs (a) or (b) above.

Notwithstanding Section 8.1, the Selling Shareholder and Vista may

transfer, sell or tender Locked Up Shares pursuant to a take-over bid made to all holders of common shares of Midas or similar acquisition transaction, including a merger, arrangement or amalgamation, involving a change of

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control of Midas, provided that (i) in the event that the take-over bid or acquisition transaction is not completed, the Locked Up Shares will remain subject to the restrictions contained herein, and (ii) all Locked Up Shares not transferred, sold or tendered, will remain subject to the restrictions contained herein; or

pledge or grant a security interest in the Locked Up Shares to a financial institution or similar lender provided that the pledgee or beneficiary of the security interest enters into an agreement with the Agent to be bound by the restrictions contained herein with respect to the Locked Up Shares.

For greater certainty, it is acknowledged that the Selling Shareholder and Vista will retain all voting rights, rights to dividends and distributions and other rights and entitlements with respect to the Locked Up Shares.

In addition to any other remedies which may be available to the Agent, this Agreement and any orders for the Shares received by an Agent may be terminated by an Agent upon delivery of written notice from the Agent to the Selling Shareholder at any time up to the Closing of the Offering in any of the following events:

there shall have occurred any material change or change in any material fact, or there shall be discovered any previously undisclosed material change or material fact that, in each case, in the reasonable opinion of the Agent, has or would be expected to have a material adverse effect on the market price or value of any of the common shares of Midas, including, without limitation, the Shares;

any inquiry, action, suit, investigation or other proceeding (whether formal or informal) is commenced, announced or threatened or any order is made by any federal, provincial, state, municipal or other governmental department, securities commission, board, bureau, agency or other instrumentality including, without limitation, the TSX or any securities regulatory authority involving the Selling Shareholder, Midas or any of their respective officers or directors or any law or regulation is enacted or changed which, in the opinion of the Agent, acting reasonably, operates to prevent or restrict the trading of the common shares of Midas or materially and adversely affects or will materially and adversely affect the market price or value of the common shares of Midas, the distribution of the Shares, or adversely affects or might reasonably be expected to adversely affect the marketability, market price or value of the Shares;

if there should develop, occur or come into effect or existence any event, action, state, condition or major financial occurrence of national or international consequence (including, without limitation, an act of terrorism) or any law or regulation which, in the opinion of the Agent, adversely affects, or involves, or will or could reasonably be expected to adversely affect, or involve, the financial markets or the business, operations or affairs of Midas and its subsidiaries, taken as a whole;

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in the event that the state of the financial markets is such that, in the sole opinion of the Agent, the Shares cannot be profitably marketed; or

if there is a failure by the Selling Shareholder, or otherwise, of the satisfaction of any of the conditions precedent set out in section 5  of this Agreement.

Any such termination shall be effected by notice in writing to the Selling Shareholder at any time prior to the Time of Closing.

Any notice to be given hereunder shall be in writing and may be given by facsimile, electronic mail or by hand delivery and shall, in the case of notice to the Selling Shareholder or Vista, be addressed and delivered to:

Vista Gold U.S. Inc. or Vista Gold Corp.
7961 Shaffer Parkway, Suite 5
Littleton, Colorado  80127

Attention: John F. Engele, Chief Financial Officer
Fax No.:(720) 981-1186

Email:[email protected]

and in the case of the Agent, be addressed and delivered to:

Haywood Securities Inc.
Suite 700, 200 Burrard Street
Vancouver, British Columbia    V6C 3L6

Attention:Kevin Campbell
Fax No.:(604) 697-7495 

Email:[email protected]

 

The Selling Shareholder and the Agent may change their respective addresses for notice by notice given in the manner referred to above.

Time and each of the terms and conditions of this Agreement shall be of the essence of this Agreement and any waiver by the parties of this section 10.2 or any failure by them to exercise any of their rights under this Agreement shall be limited to the particular instance and shall not extend to any other instance or matter in this Agreement or otherwise affect any of their rights or remedies under this Agreement.

This Agreement constitutes the entire agreement between the parties hereto in respect of the matters referred to herein and there are no representations, warranties, covenants or agreements, expressed or implied, collateral hereto other than as expressly set forth or referred to herein and this Agreement supersedes any previous agreements, arrangements or understandings among the parties.

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The headings in this Agreement are for reference only and do not constitute terms of the Agreement.

The provisions contained in this Agreement which, by their terms, require performance by a party to this Agreement subsequent to the Closing Date of this Agreement, shall survive the Closing Date of this Agreement.

No alteration, amendment, modification or interpretation of this Agreement or any provision of this Agreement shall be valid and binding upon the parties hereto unless such alteration, amendment, modification or interpretation is in written form executed by the parties directly affected by such alteration, amendment, modification or interpretation.

The parties hereto shall execute and deliver all such further documents and instruments and do all such acts and things as any party may, either before or after the Closing Date, reasonably require in order to carry out the full intent and meaning of this Agreement.

This Agreement may not be assigned by any party hereto without the prior written consent of all of the parties hereto.

This Agreement is governed by the laws of British Columbia and the federal laws of Canada applicable therein, and the parties hereto irrevocably attorn and submit to the jurisdiction of the courts of British Columbia with respect to any dispute related to this Agreement.

The invalidity or unenforceability of any particular provision of this Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Agreement.

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This Agreement may be signed by the parties in as many counterparts as may be deemed necessary, and may be delivered by email or by facsimile transmission, each of which will be deemed to be an original and all of which will constitute one agreement, effective as of the reference date given above.

If the foregoing is in accordance with your understanding and agreed to by you, please signify your acceptance on the accompanying counterparts of this letter and return same to the Agent whereupon this letter as so accepted shall constitute an agreement between the Selling Shareholder and the Agent enforceable in accordance with its terms.

Yours truly,

 

The foregoing is accepted and agreed to as of the date appearing on the first page of this Agreement.

 

 

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SCHEDULE “A”

COMPLIANCE WITH UNITED STATES SECURITIES LAWS

As used in this Schedule “A”, capitalized terms used herein and not defined herein shall have the meanings ascribed thereto in the Agency Agreement to which this Schedule is annexed and the following terms shall have the meanings indicated:

Representations, Warranties and Covenants of the Agent

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The Agent acknowledges that none of the Shares have been or will be registered under the U.S. Securities Act or any securities laws of any of states of the United States.  The Agent (on behalf of itself and its U.S. Affiliate), severally and not jointly, represents, warrants and covenants to and with the Selling Shareholder and Vista that:

Representations, Warranties and Covenants of the Selling Shareholder

The Selling Shareholder represents, warrants, covenants and agrees that:

 

 

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Exhibit 10.2

 

FINDER’S FEE AGREEMENT

 

 

THIS AGREEMENT, dated for reference February 25, 2015, is made

BETWEEN:

VISTA GOLD U.S. INC., a company having an address at 7961 Shaffer Parkway, Suite 5, Littleton, Colorado, 80127

(the “Company”)

AND:

GLOBAL MARKET DEVELOPMENT LLC, a limited liability company organized under the laws of California and having an address at 444 South Cedros, Suite 195, Solana Beach, California, 92075

(the “Finder”)

 

 

WHEREAS:

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the covenants and agreements herein contained, the parties hereto do covenant and agree with each other as follows:

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THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK

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IN WITNESS of this Agreement, the parties have executed and delivered this Agreement as of the date given above.

 

 

 

 

 

   

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EXHIBIT 99.1

                                                               

                         

__________________ NEWS _________________

 

Vista Gold Corp. Enters Into An Agency Agreement
For The Sale Of Up To 8,000,000 Shares Of Midas Gold Corp.

 

Denver, Colorado, February 25,  2015  -  Vista Gold Corp. (TSX & NYSE MKT: VGZ) (“Vista” or the “Company”) today announced that it executed an agency agreement with an agent (the “Agent”) and Vista’s wholly owned subsidiary, Vista Gold U.S. Inc. (“Vista US”), under which the Agent has arranged to sell up to 8,000,000 common shares of Midas Gold Corp. (“Midas”) held by Vista US (the “Midas Shares”) at  a price of Cdn$0.46 per Midas Share for aggregate gross proceeds of up to Cdn$3,680,000 (the “Sale”).  A portion of the Midas Shares may be sold pursuant to a finder’s agreement between Vista US and a finder (the “Finder”) on the same offering terms.  In consideration for the services to be provided by the Agent, and if applicable, the Finder, in connection with sale of the Midas Shares, the Agent or the Finder (as applicable) will receive a cash fee equal to 4% of the gross proceeds from the sale of the Midas Shares. 

 

Vista and Vista US have agreed that following the closing of the Sale, they will not sell any of their remaining shares of Midas for a period of 6 months following closing.    

 

Vista currently holds, directly and indirectly through Vista US, an aggregate of 15,802,615 common shares of Midas, representing 11.2% of the outstanding common share of Midas.  Following the sale of the Midas Shares, Vista’s holding would be reduced to 7,802,615 common shares of Midas, representing 5.5% of the outstanding common shares of Midas.

 

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and may not be offered or sold absent such registration or pursuant to an exemption from such registration requirements.  This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein in the United States.

 

About Vista Gold Corp.

Vista’s principal asset is its flagship Mt Todd gold project in Northern Territory, Australia.  Upon completion of the Sale we  will also hold 5.5%  of the outstanding common shares of Midas,  non-core projects in Mexico and the United States and royalty interests in projects in Bolivia and Indonesia.  For more information about our projects, including technical studies and resource estimates, please visit our website at www.vistagold.com. 

 

For further information, please contact Connie Martinez at (720) 981-1185.

 

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future include completion of the sale of all or a portion of the Midas Shares, the gross proceeds that Vista may raise through the sale of the Midas Shares, the number of common shares of Midas that Vista would hold upon the

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completion of the sale of all of the Midas Shares and the interest in Midas that holding represents and other such matters are forward-looking statements and forward-looking information The material factors and assumptions used to develop the forward-looking statements and forward-looking information contained in this press release include the following: permitting conditions in Mexico, compliance by our partners of their contractual obligations, track record and ability of our partners, our approved business plans, exploration and assay results, mineral resource and reserve estimates and results of preliminary economic assessments, pre-feasibility studies and feasibility studies on our projects, if any.  When used in this press release, the words “optimistic,” “potential,” “indicate,” “expect,”  “intend,” “hopes,” “believe,” “may,” “will,” “if,” “anticipate,” and similar expressions are intended to identify forward-looking statements and forward-looking information.  These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements.  Such factors include, among others, uncertainty of the completion and size of the Sale, risks associated with market conditions, resource and reserve estimates, uncertainty as to the Company’s future operating costs and ability to raise capital; risks relating to cost increases for capital and operating costs; risks of shortages and fluctuating costs of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; potential effects on our operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; risks related to our partners and the geopolitical environment in which they carry on business; as well as those factors discussed under the headings “Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s latest Annual Report on Form 10-K as filed on March 17, 2014 and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities.  Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.  Except as required by law, we assume no obligation to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future events or otherwise.

 

 

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