7. Long-Term Investments

Midas Gold Corp. Combination

In April 2011, Vista completed a combination (the "Combination") with Midas Gold, Inc. As part of the Combination, each party contributed their respective interests in gold assets in the Yellow Pine-Stibnite District in Idaho to a new Canadian private company named Midas Gold Corp. ("Midas Gold"). In exchange for the contribution of its equity interests in Idaho Gold Holding Company, Vista Gold U.S., Inc. ("Vista US") was issued 30,402,615 common shares in the capital of Midas Gold ("Midas Gold Shares"). Concurrently with the Combination, Midas Gold completed a private placement of 6,129,800 Midas Gold Shares at a purchase price of C$2.50 ($2.59 based on the exchange rate on April 6, 2011) per share to raise gross proceeds of C$15,325 ($15,876 based on the exchange rate on April 6, 2011) (the "Private Placement"). We purchased 1,400,000 Midas Gold Shares through the Private Placement for an aggregate purchase price of C$3,500 ($3,632 based on the exchange rate on April 6, 2011). Following completion of the Combination and the Private Placement, Vista and Vista US together held 31,802,615 Midas Gold Shares representing as at April 6, 2011 approximately 37.4% (basic) and 34.2% (fully diluted basis) of the issued and outstanding Midas Gold Shares.

On July 14, 2011, Midas Gold completed an initial public offering ("IPO"), issuing 13,930,855 Midas Gold Shares. Midas Gold Shares began trading on the Toronto Stock Exchange ("TSX") under the symbol "MAX." As of March 31, 2012, which represents Midas Gold's latest available financial data as of the filing date of this quarterly report, Midas had 114,466,936 common shares outstanding of which Vista owns 31,802,615 common shares or 27.8% of the issued and outstanding Midas Gold Shares.

Upon initial recognition of its investment in the Midas Gold Shares, Vista elected to apply the fair value option, and as such, the investment is recorded at fair value in the Consolidated Balance Sheets. Subsequent changes in fair value are recorded in the Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss) in the period in which they occur. The difference between the fair value of the 30,402,615 Midas Gold Shares and the carrying value of our Yellow Pine assets has been recorded as a gain on disposal of mineral property given that Vista ceased to have a controlling financial interest in the Yellow Pine gold project upon completion of the Combination.

The Combination with Midas Gold was a tax-free reorganization for U.S. tax purposes. However, upon completion of the Combination, Vista US received Midas Gold Shares with a fair value that was determined to be $78,872. The corresponding estimated deferred tax expense of $29,675 at the time of the Combination exceeded the valuation allowance of $6,086 for Vista US. Therefore, the valuation allowance against Vista US's deferred tax asset was released upon receipt of the Midas Gold Shares. During the six months ended June 30, 2012, we recorded an unrealized loss on the Midas Gold Shares of $42,316 with a corresponding US tax benefit of $15,724. The tax calculation is based on an effective rate of 38.87% (US Federal - 35% and state - 3.87%). As of June 30, 2012, the fair value of the Midas Gold Shares was $77,535.

Because management intends to hold this investment for the long term, we have classified our investment in the Midas Gold Shares as a long-term investment.

Summarized financial information for Midas Gold as of March 31, 2012 and for the twelve months then ended, which represents Midas Gold's latest available financial data as of the filing date of this quarterly report, prepared in accordance with International Financial Reporting Standards for interim financial statements is as follows.

	March 31, 2012

Current assets
Cash and cash equivalents	$	61,855
Trade and other receivables		290
Prepaid expenses		99
Total current assets		62,244
Non-current assets
Buildings and equipment		2,951
Exploration and evaluation assets		129,679
Reclamation bond		18
Total non-current assets		132,648
Total assets	$	194,892

Liabilities and Equity
Current liabilities
Trade and other payables	$	3,569
Current portion of notes payable		182
Accrued interest		18
Total current liabilities		3,769
Long-term portion of notes payable		561

Share capital		193,509
Equity reserve		13,787
Deficit		(16,734	)
Total equity		190,562
Total liabilities and equity	$	194,892

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,
	2012			2011			2011			2011

Operating expense	$	(2,927	)	$	(3,949	)	$	(2,988	)	$	(3,349	)
Other income/(expense)		482			1,645			(3,768	)		(52	)
Net loss	$	(2,445	)	$	(2,304	)	$	(6,756	)	$	(3,401	)

Net loss per share, basic and diluted	$	(0.02	)	$	(0.02	)	$	(0.07	)	$	(0.04	)

Weighted average number of shares outstanding, basic and diluted		107,008,000			105,248,000			102,557,000			86,903,000