Elemental to acquire Vizsla Royalties in $327 million transaction
Elemental Royalites Corp. [ELE-TSX] has signed a definitive deal to acquire all of the issued and outstanding shares Vizsla Royalties Corp. [VROY-TSXV, OTCQX] via a court-approved plan of arrangement valued at $327 million (US$239 million).
Elemental is aiming to secure long-life royalty exposure to the Panuco silver-gold project in Mexico.
Elemental is a mid-tier, gold-focused streaming and royalty company with a portfolio that includes 18 producing assets, more than 200 royalties and expected revenue of expected revenue of US$80 million in 2026.
Vizsla Royalties is a company that was spun out almost two years ago by. Vizsla Silver Corp. [VZLA-TSX, NYSE, 0G3 Frankfurt]. It holds, indirectly a net smelter royalty on any potential future mineral production from Vizsla’s 100% owned Panuco silver-gold project in Sinaloa, Mexico.
The royalty consists of a 2.0% net smelter return royalty on certain unencumbered Panuco concessions, and an 0.5% net smelter return royalty on certain unencumbered concessions on the project, which have a pre-existing 3.0% net smelter royalty.
Under the terms of the arrangement agreement, each Vizsla Royalties shareholder will have the option to receive for each Vizsla Royalties share (i) 0.15 common shares of Elemental, (ii) $4.13 in cash, or (iii) a combination thereof, subject to rounding an proration, based on a maximum total cash consideration of approximately $82 million. The total consideration for the transaction is $327 million or $4.13 per share. The transaction represents a premium of 31% and 22% to the unaffected closing price and 20-day volume weighted average trading price, respectively, of the Vizsla Royalties shares on May 12, 2026.
Vizsla Royalties shares advanced on the news, rising 18.4% or 61 cents to $3.93. The shares trade in a 52-week range of $5.20 and $1.93.
Elemental Royalties shares eased 1.24% or 33 cents to $26.24. The shares trade in a 52-week range of $34.29 and $13.20.
The newly consolidated Panuco gold-silver project is an emerging high-grade discovery located in southern Sinaloa, near the city of Mazatlan, and 80 kilometres from First Majestic Silver Corp.’s [AG-TSX, NYSE, FMV-FSE] San Dimas operation.
A 2025 feasibility study indicates 17.4 million ounces of annual silver equivalent (AgEq) production over a 9.4-year mine life, and over 20 million ounces of AgEq annually over the first five years. That would make Panuco one of the top five primary silver assets by production globally.
The underground development is centred on the Copala and Napoleon deposits, with ore to be processed on site through a three-stage crushing and grinding circuit, followed by leaching and Merrill-Crowe recovery to produce silver-gold dore.
Vizsla Silver has a stated target of first silver in the second half of 2027, with key permitting applications already advanced. The test mine on site is already delivering metallurgical, geophysical, and geotechnical data, while stockpiling high-grade ore, providing substantial de-risking.
Vizsla Silver has reported completion of 395,000 metres of diamond drilling to date and expects to complete a further 10,000 metres in 2026.