Vista Gold raises US$44.85 million for Mt. Todd exploration

Vista Gold Corp. [VGZ-TSXV] has raised US$44.85 million from an underwritten public offering and will use the net proceeds to advance exploration and development at its Mt. Todd gold project in Australia.

The offering consisted of 17.9 million common shares priced at US$2.50 per share. The amount raised includes the full exercise of the underwriters’ option to purchase 2.34 million additional common shares at the offering price.

Vista Gold shares on Monday eased 5.54% or 18 cents to $3.07. The shares trade in a 52-week range of $4.25 and 96 cents.

Vista has previously said its 100% owned Mt Todd project is positioned to be one of Australia’s largest and lowest cost new gold producers. Located in Northern Territory, about 250 kilometres southeast of Darwin, Mt. Todd contains more than 7.8 million ounces of gold resources in the measured and indicated categories. The project is located in an area that the company has described as one of the world’s most attractive mining jurisdictions.

Former owner/operator Pegasus Gold built an 8.0 million tonnes per year flotation carbon-in-leach plant to improve recoveries from the Batman Deposit that were achieved by a heap leach operation. The plant was commissioned in November 1996 but was shut down in mid 1997 when the price of gold fell below US$300 an ounce.

Vista Gold acquired Mt. Todd in 2006 through a series of contracts with Pegasus Gold Australia, the Jawoyn Aboriginal Association Corp. (JAAC), the Northern Territory Government (NGT). The JAAC are the freehold owners of the surface land in the area of the Mt Todd project.

Vista Gold President and CEO Fred Earnest has said the Mt Todd project has a lot going for it, including existing infrastructure that he believes will reduce the development risk and shorten the timeline to production.  They include paved roads to the mine site, connection to the electric grid and a natural gas pipeline to the site.

“Mt Todd is a permitted, ready-to-build development opportunity in the current environment of a strong gold market and diminishing major deposit discoveries,’’ Earnest said.

An updated feasibility study released back in July, 2025, envisages annual gold production of 153,000 ounces during years one to 15 and 146,000 ounces over the 30-year mine life. The average ore grade is pegged at 1.04 g/t over he first 15 years and 0.97 g/t over the life of the mine. The company said the 15,000 tonnes-per-day feasibility study offered a favourable development alternative to Vista’s previous feasibility study completed in 2024 at rate of 50,000 tonnes per day.

The new study demonstrated the potential for near-term development of a smaller initial project by prioritizing higher grade ore to the processing plant, significantly lowering initial capital costs, and incorporating contractors to reduce development and operational risks.

Initial capital requirements have been reduced to $425 million, a 59% reduction from the 2024 feasibility study. All-in-sustaining costs are now pegged at US$1,449 an ounce in years one to 15.