Vizsla Copper advances on Universal Copper takeover deal
Vizsla Copper Corp. [VZLA-TSXV, VCUFF-OTCQB, 97E0-Frankfurt] has struck a definitive deal to acquire all the issued and outstanding shares of Universal Copper Ltd. [UNV-TSXV, #TA2-Frankfurt] by way of a plan of arrangement.
Universal is a Canadian copper exploration company. Its flagship Poplar Project is one of the most advanced pre-production copper projects in British Columbia. The project is large and covers 39,000 hectares in an accessible region of the central interior of B.C. It hosts an indicated resource of 152.3 million tonnes of grade 0.32% copper, 0.009% molybdenum, 0.09 g/t gold and 2.58 g/t silver. On top of that is an inferred resource of 139.3 million tonnes of grade 0.29% copper, 0.005% molybdenum, 0.07 g/t gold and 4.95 g/t silver.
Vizsla Copper has evolved from a move by Vizsla Silver Corp. [VZLA-TSXV] spin out its British Columbia copper assets. Combining the Poplar project with Vizsla Copper’s Woodjam, Regold, Copperview and Carruthers Pass properties, offers shareholders exposure to a growing pipeline of projects ranging from expansion driven brownfield development to exciting discovery-seeking greenfield exploration, the companies said in a press release.
The arrangement deal has been unanimously approved by the board of directors of both companies. The Universal board has agreed to recommend that the company’s shareholders vote in favour of the agreement.
Under the agreement, all of the shares of Universal will be exchanged for Vizsla Copper common shares on the basis of 0.23 Vizsla Copper shares for each Universal share. As a result, Vizsla Copper expects to issue approximately 32.6 million shares to current Universal shareholders. Upon completion of the arrangement, current Universal shareholders will own approximately 23.3% of the 140k.3 million issued and outstanding shares of Vizsla Copper.
Vizsla Copper shares advanced on the news, rising 5.26% or $0.005 to 10 cents. The shares currently trade in a 52-week range of 29.5 cents and $0.085. Universal Copper shares jumped 33.3% or $0.005 to $0.02. The shares trade in a 52-week range of $0.04 and $0.01.
Vizsla is primarily focused on the Woodjam project, located in the Quesnel Terrane, 55 kilometres east of Williams Lake. B.C. It has three additional copper exploration projects, Copperview, Redgold and Carruthers Pass. After the deal is completed, Vizsla will control the Poplar project.
Carruthers Pass it’s a shale-hosted massive sulphide project (base and precious metals), discovered in 1997 by Phelps Dodge Corp. of Canada. It consists of eight contiguous mineral claims covering 3,250 hectares, located approximately 200 kilometres northeast of the community of Smithers.
The Kemess Mine road passes 25 kilometres north and east of the claims while industrial logging roads extend from Takla Lake northward to withing 35 kilometres of the property.