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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 our
operations on May 10, 2007, with the closing of the
previously announced plan of arrangement involving Allied
Nevada, Vista, and Carl and Janet Pescio 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 then 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.
Also, as part of the Arrangement, Allied
Nevada paid $15 million in cash and issued 12,000,000 Allied
Nevada shares to the Pescios to purchase their interests in
certain Nevada-based mining properties and related assets.
In addition, Carl Pescio is a member of the Board of
Directors of Allied Nevada.
As a result of these transactions, Allied
Nevada owns the Hycroft Mine, the Wildcat, Maverick Springs,
Mountain View, Hasbrouck, Three Hills, the Contact projects,
and numerous other Nevada properties acquired by Vista
through the acquisition of the F.W. Lewis, Inc. assets. In
addition, the Company also holds the interests previously
held by the Pescios in over 50 properties, including royalty
and/or other interests in Beowawe, Cobb Creek, Dixie Flats,
Dome, Wild Horse, Eden, Elder Creek, NAD, North Carlin,
North Mill Creek, Pony Creek and Eliot Dome, Switch, Six Mile, Toy, Tusk,
Rock Creek, Santa Renia, South Silver Cloud, Tonka and
Woodruff properties. These properties are located in some of
the most prolific gold-producing trends in Nevada.
In July 2007, the Company completed a
private placement sale of approximately 3.7 million shares
of Allied Nevada Gold Corp. for a market price of CND$ 4.60
per share, raising approximately $16.3 million. These funds,
along with our initial working capital, will be used to fund
exploration and development activities at Hycroft, as well
as for general corporate purposes.
The re-opening of the Hycroft oxide mine
is underway. The project is on track to be completed so that
initial gold production will take place in the 4th
quarter of 2008. In March of 2008 the
company opened a $27 million dollar line of credit and
purchased a mining fleet for use at the Hycroft Mine. |
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