Closing date for spinout of VIZSLA Copper to VIZSLA SilverThe effective date for the spin-out of its British Columbia copper assets to Vizsla Copper Corp. (“Vizsla Copper” or “SpinCo”) is expected to occur at 12:01 a.m. on September 20, 2021 (the “Effective Date”).
Pursuant to the terms of the plan of arrangement (“Arrangement”), holders of common shares of Vizsla Silver on September 17, 2021 will receive one new common share of Vizsla Silver (each, a “Vizsla Silver Share”) and 1/3 of a SpinCo share (each, a “SpinCo Share”). The existing common shares of Vizsla Silver are expected to be delisted from the TSX Venture Exchange (the “TSXV”) on September 17, 2021. Vizsla Silver Shares are expected to commence trading on the TSXV at the market open on September 20, 2021. The CUSIP numbers for the new Vizsla Silver Shares and the SpinCo Shares will be 92859G202 and 92858X107, respectively.
Michael Konnert, President and Chief Executive Officer of the Company stated: “As all of our efforts continue to be focused on the Panuco silver-gold project in Mexico, we believe that the spin out of the Company’s early-stage copper assets will allow for independent advancement of otherwise non-core assets creating significant shareholder value.”
Computershare Investor Services Inc. (“Computershare”) will forward replacement certificates to each Vizsla Silver shareholder that is entitled to receive certificates, representing their allotted number of new Vizsla Silver Shares and SpinCo Shares in accordance with the Arrangement. Letters of transmittal have been mailed to registered holders of common shares of Vizsla Silver, which must be completed and returned to Computershare together with the share certificates of Vizsla Silver at the address specified in the letter of transmittal, in order for Vizsla Silver shareholders to receive new Vizsla Silver Shares and SpinCo Shares following the Effective Date. A copy of the letter of transmittal is also available under the Company’s profile on SEDAR at www.sedar.com. For more information, see the Company’s management information circular dated May 14, 2021 filed under the Company’s profile on SEDAR at www.sedar.com.
SpinCo has received conditional approval to list the SpinCo Shares on the TSXV. Final listing approval will be subject to SpinCo satisfying all of the listing conditions of the TSXV. In connection with the Arrangement, SpinCo has received subscriptions for and intends to complete a non-brokered private placement for gross proceeds of $5,067,669, consisting of 23,816,866 SpinCo Shares at a purchase price of $0.15 per share for proceeds of $3,572,530 million, and 8,306,331 flow-through SpinCo Shares at a purchase price of $0.18 per flow-through share for proceeds of $1,495,140 million. The private placement is expected to close in connection with the commencement of trading of SpinCo Shares on the TSXV. SpinCo will announce by way of a further press release the date on which trading of the SpinCo Shares will commence, which is expected to be before the end of September, 2021. The trading symbol for the SpinCo Shares will be “VCU”. In order to satisfy TSXV listing requirements, Vizsla Silver has agreed to transfer cash to SpinCo in the amount of $1,122,356 in connection with the completion of the Arrangement.