Caldwell to head Vista spin-off
October 2, 2006
A veteran mining executive in Reno will lead a new company created by the spin-off of Vista Gold’s holdings in Nevada.
Scott Caldwell, formerly executive vice president and chief operating officer of Kinross Gold Corp., will head the new company to be known as Allied Nevada Gold Corp.
Shareholders of Denver-based Vista Gold will vote Nov. 15 whether to approve the spin-off.
If they give the OK, Vista will combine its properties which include the Hycroft Mine 54 miles west of Winnemucca with the interests of Elko’s Carl Pescio, one of the largest private owners of mineral interests in the state.
Pescio brings to the deal royalty interests in 53 gold properties totaling about 220 square miles. He has joint venture or option agreements in place for exploration of 52 of the 53 properties.
His properties and those that will be spun off by Vista total about 190,000 acres. Vista late last year paid $5.1 million for the Nevada holdings of F.W. Lewis Inc., a private company that owned 53 properties in the state.
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Before the new company can be created, Vista needs to raise at least $25 million to provide start-up funding for Alliance Nevada Gold. Vista plans an equity offering to raise the money.
In announcing the spin-off plan in July, Vista executives said they don’t believe Wall Street has properly valued the company’s holdings in Nevada.