(VZLA-TSX-V)
Panuco Amending Agreement
Under the Amending Agreement, Vizsla and Minera Rio Panuco have agreed to amend the terms of the original Panuco option agreement in order to accelerate the Company's exercise of its option on the Panuco property (the "Panuco Property"). Upon closing of the transactions contemplated by the Panuco Amending Agreement, Vizsla will acquire a 100% ownership interest in the Panuco Property (comprising 43 mining concessions with a combined surface area of 3,839 Ha) and the "El Coco" mill (the "Mill") in consideration for:
- A cash payment of
US$4,250,000 payable to Minera Rio Panuco upon signing of the Amending Agreement; - The issuance to Minera Rio Panuco of 6,245,902 common shares of Vizsla priced at
C$2.44 per share (for a total value ofUS$12,000,000 ) upon the completion of the transfer of the Panuco Property on or beforeAugust 10, 2021 ; and - A cash payment of
US$6,100,000 on or beforeFebruary 1, 2022 , following the refurbishment and transfer of ownership of the Mill which is to occur on or beforeDecember 31, 2021 .
The mineral concessions comprising the Panuco Property include the Napoleon vein corridor – which has seen the majority of Vizsla's exploration – and are unencumbered by royalties.
Copala Exercise Notice
Under the Copala Exercise Notice, Vizsla and Silverstone have agreed to amend the terms of the original
- A cash payment of
US$9,607,212.50 payable to Silverstone upon the completion of the transfer of the Copala Property on or beforeAugust 3, 2021 ; and - The issuance to Silverstone of 5,000,475 common shares of Vizsla priced at
C$2.44 per share (for a total value ofUS$9,607,212.50 ) upon the completion of the transfer of the Copala Property.
Table 1: Summary of Amending Agreements1
Vizsla President and CEO,
All common shares issued pursuant to the Amending Agreements will subject to a 4-month statutory hold period in applicable with Canadian securities laws. The Amending Agreements are subject to approval of the
After the execution of the Amending Agreements, Vizsla will continue to be well-funded with over
About the Panuco project
Upon completion of the transactions contemplated by the Amending Agreements, Vizsla will own 100% of the 9,386.5-hectare Panuco district in southern
The district contains intermediate to low sulfidation 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.
Neither
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SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the acceleration and exercise of the Company's option to acquire 100% of the
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Vizsla, future growth potential for Vizsla and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Vizsla's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Vizsla has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in
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