Vizsla Silver acquires 100% of the Panuco district
(Kitco News) - Vizsla Silver (TSXV: VZLA) (OTCQB: VIZSF) (Frankfurt: 0G3) said today it will acquire 100% of the Panuco-Copala silver-gold district from Minera Rio Panuco SA de CV in a transaction comprising of cash and shares.
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, noted Vizsla in a news release.
Vizsla must make total cash payments of US$10.35 million and issue Minera Rio Panuco of 6,245,902 common shares of Vizsla priced at C$2.44 per share.
Vizsla President and CEO, Michael Konnert, commented: "The acceleration of the options and taking full ownership of the entire district within 20 months of signing is a major achievement for Vizsla Silver and speaks to our confidence in the Panuco District. The option exercise pursuant to these terms allows us to preserve approximately C$27,000,000 in cash which we intend to utilize in the most value accretive activities for the Company. In addition, the new structure shows the strong belief the vendors have in the potential of this asset. We are excited to welcome them as shareholders, take full control of the property and look forward to unlocking its full potential."
Vizsla stock was largely unchanged, up 0.8% to $2.46 a share.