Vizsla Royalties shares set to trade on TSXV
Vizsla Royalties Corp. [VROY-TSXV] shares are set to begin trading on the TSX Venture Exchange on Monday, August 26, 2024.
In connection with the listing, on July 30, 2024, the company closed a non-brokered private placement of 8.65 million common shares priced at 60 cents, raising gross proceeds of $5.19 million.
The announcement comes two months after Vizsla Silver Corp [VZLA-TSXV, NYSE, 0G3 Frankfurt] said it had received final TSX Venture Exchange approval of a previously announced plan to reorganize its business, including the spin-off of its wholly-owned subsidiary, Vizsla Royalties Corp.
Vizsla Royalties currently 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 spin-out plan, Vizsla Silver pledged to transfer to Vizsla Royalties the right to purchase one half of the underlying royalty, and grant Vizsla Royalties the right to acquire a royalty on any future projects acquired by Vizsla Silver for two years after the spinout is completed. This option would automatically terminate upon a change of control Vizsla Royalties or Vizsla Silver.
As well, Vizsla Silver said it would make a cash injection into Vizsla Royalties.
Under the spinout plan, Vizsla Silver was expected to hold approximately a 49% interest in Vizsla Royalties, with the remaining shares of Vizsla Royalties being distributed to shareholders of Vizsla Silver. There is no change in shareholders’ holdings in Vizsla Silver as a result of the spinout.
The newly-consolidated Panuco gold-silver project is an emerging high-grade discovery located in southern Sinaloa, near the city of Mazatlan.
A preliminary economic assessment for Panuco envisages a 3,300 tonnes per day production rate for the first three years, expanding to 4,000 tonnes per day in year four, producing silver-gold dore with an initial mine life of 10.6 years.
The PEA forsees life of mine average payable production of 15.2 million ounces of AgEq annually (9.2 million ounces of silver and 78,000 ounces of gold.
On January 8, 2024, Vizsla Silver announced an updated mineral resource estimate for Panuco. It includes an estimated in-situ indicated resource of 155.8 million ounces of silver equivalent (AgEq) and an in-situ inferred resource of 169.6 million ounces of AgEq.
This year, the company budgeted for over 30,000 metres of resource/discovery-based drilling designed to upgrade and expand the mineral resource, as well as test other high priority targets across the district.
To date, Vizsla Silver has completed over 368,000 metres of drilling at Panuco, leading to the discovery of several new high-grade veins.