Mr. Michael Konnert reports
VIZSLA SILVER OBTAINS SHAREHOLDER AND COURT APPROVAL OF SPIN-OUT OF COPPER EXPLORATION ASSETS AND CLOSES THE C$4 MILLION NON-BROKERED PRIVATE PLACEMENT
At Vizsla Silver Corp.'s special meeting of shareholders held June 15, 2021, all of the resolutions were duly passed, including the special resolution to approve the proposal plan of arrangement pursuant to which Vizsla Silver will spin out its B.C. copper exploration assets to Vizsla Copper Corp. Also, today the Supreme Court of British Columbia approved the arrangement under the terms of the Business Corporations Act (British Columbia).
Common shares of Vizsla Copper will be distributed to shareholders of Vizsla Silver on the basis of one Vizsla Copper share for every three common shares of Vizsla Silver. The arrangement will not result in any change to a shareholder's ownership of Vizsla Silver. The majority of shareholders (those who hold their shares through their broker) will receive their SpinCo shares with no further action.
Once the arrangement becomes effective, shareholders will own shares in both public companies: (i) Vizsla Copper, which will focus on the 100-per-cent-owned Blueberry copper project located in the Babine porphyry belt of central British Columbia and the option to acquire a 60-per-cent interest in the Carruthers Pass copper property located 200 kilometres north of Smithers, B.C.; and (ii) Vizsla Silver, which will continue to advance the Panuco Copala silver-gold project in Mexico.
Completion of the arrangement is subject to a number of customary conditions, including the following:
- TSX Venture Exchange approval of the arrangement by Vizsla Silver;
- TSX-V approval for the listing of the SpinCo shares upon completion of the arrangement;
- Completion of a private placement by SpinCo to raise gross proceeds of up to $3.5-million.
Assuming the timely completion of these conditions, the company expects the arrangement to close in July, 2021.
The company also announces that it has completed its non-brokered private placement previously announced on June 3, 2021. The company issued a total of 1.69 million units at a price of $2.50 per unit for gross proceeds of $4,225,000.
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each private placement warrant entitles the holder to acquire one common share of the company for 18 months from the closing of the private placement at a price of $3.25.
The company paid cash finders' fees equal to 6 per cent of the gross proceeds and issued broker warrants of the company, exercisable at any time on or before Dec. 18, 2022, to acquire the number of common shares in the capital of the company that is equal to 6 per cent of the number of units sold under the private placement at an exercise price of $2.50.
The securities issued pursuant to the offering have a hold period of four months and one day from closing, expiring on Oct. 19, 2021.
The net proceeds of the private placement will be used to advance the exploration and development of the company's Panuco project, to make option payments and pursue potential future acquisitions, as well as for working capital and general corporate purposes.
About the Panuco project
Vizsla has an option to acquire 100 per cent of the newly consolidated 9,386.5-hectare Panuco district in southern Sinaloa, Mexico, near the city of Mazatlan. The option allows for the acquisition of over 75 kilometres of total vein extent, a 500-ton-per-day mill, 35 kilometres of underground mines, tailings facilities, roads, power and permits.
The district contains intermediate to low sulphidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara formation.
About the Blueberry project
The Blueberry property is located about 60 kilometres southwest of the town of Houston, B.C. The property falls within the jurisdiction of the Omineca mining division. The property benefits from ample access through a network of resource roads on the property.
About the Carruthers Pass property
The Carruthers Pass property consists of eight contiguous mineral claims covering 3,250 hectares approximately 200 kilometers 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 within 35 kilometres of the property. The property covers an isolated group of topographically high peaks and the lower area surrounding the range. The property consists of eight contiguous claims, as 130 units covering approximately 3,250 hectares.
We seek Safe Harbor.