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History
Allied Nevada Gold Corp. was incorporated under the laws of Delaware
on September 14, 2006 as a wholly-owned subsidiary of Vista Gold Corp.
We started operations on May 10, 2007, with the closing of the
previously announced plan of arrangement involving Allied Nevada, Vista,
and Carl and Janet Pescio (the Pescios) under the terms of the
Arrangement and Merger Agreement that Allied Nevada signed with Vista
and the Pescios on September 22, 2006. Allied Nevada began trading on
the American and Toronto Stock Exchanges on May 10, 2007.
Pursuant to the Arrangement, Vista’s Nevada-based mining properties
and related assets were transferred to us along with $25 million in cash
in return for 26.9 million Allied Nevada shares. The Allied Nevada
shares received by Vista were distributed to Vista’s shareholders after
Vista retained approximately 1.5 million of the shares to facilitate
payment of any taxes payable by Vista with respect of the Arrangement.
As part of the Arrangement, Allied Nevada paid $15 million in cash and
issued 12,000,000 Allied Nevada shares to the Pescios to purchase their
interests in certain Nevada-based mining properties and related assets.
Additionally, Carl Pescio is a member of the Board of Directors of
Allied Nevada.
As a result of these transactions, Allied Nevada owns the
Hycroft
Mine, Wildcat, Maverick Springs,
Mountain View, Hasbrouck, Three Hills,
the Contact projects, and more than 50 additional Nevada properties
acquired by Vista through the acquisition of the F.W. Lewis, Inc.
assets. In addition, the Company holds the interests previously held by
the Pescios in over 50 properties, including royalty and/or other
interests in Beowawe, Cobb Creek, Dixie Flats, Dome, Wild Horse, Eden,
Elder Creek, NAD, North Carlin, North Mill Creek, Pony Creek and Eliot
Dome, Switch, Six Mile, Toy, Tusk, Rock Creek, Santa Renia, South Silver
Cloud, Tonka and Woodruff properties. These properties are located in
some of the most prolific gold-producing trends in Nevada.
In July 2007, the Company completed a private placement sale of
approximately 3.7 million shares of Allied Nevada Gold Corp. for a
market price of CND$4.60 per share, raising approximately CND$16.3
million net proceeds. These funds, along with our initial working
capital, are being used to fund exploration and development activities
at Hycroft, as well as for general corporate purposes.
In April 2008, the Company closed a $69.3 million dollar net proceeds
equity finance. The line of credit coupled with the equity finance
should allow Allied Nevada to complete the reactivation of the Hycroft
oxide mine and to achieve our exploration objectives. The line of credit
was repaid on May 28, 2008.
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