Vizsla Silver Announces Effective Date of Vizsla Royalties Spinout

Rhea-AI Summary

Vizsla Silver announces the final approval of its plan to spin out its subsidiary, Vizsla Royalties Corp, from the TSX Venture Exchange.

The reorganization will be effective at 12:01 a.m. on June 24, 2024. Current shares of Vizsla Silver will be delisted from the TSX Venture Exchange at the close of business on June 21, 2024, with new shares commencing trading on June 24, 2024. The CUSIP number for the new shares will be 92859G608.

Positive

• Final TSX Venture Exchange approval received for the reorganization.
• Effective date for the reorganization set for June 24, 2024.
• New common shares of Vizsla Silver will start trading on the TSX-V on June 24, 2024.

Negative

• Existing shares will be delisted from the TSX-V on June 21, 2024.

Insights

Financial Analyst

The completion of the spin-off of Vizsla Royalties Corp. can offer several potential financial benefits for Vizsla Silver Corp. and its investors. The primary advantage is the creation of two distinct entities that can focus more effectively on their individual business strategies. This often results in better operational efficiency and can potentially unlock shareholder value. For Vizsla Silver, focusing exclusively on mining operations, while Vizsla Royalties concentrates on royalty interests, could lead to more streamlined operations and specialized growth strategies.

Market implications include the likelihood of increased visibility and potentially a positive impact on share price due to the perceived value of the new, focused entities. However, it is important to note that such spin-offs also come with administrative and operational costs, which may impact the company's short-term financials. Investors should closely monitor the financial health and performance of both entities post-spin-off to gauge the success of this strategic move.

Market Research Analyst

A spin-off like the one Vizsla Silver is executing can significantly change the perception of the company in the marketplace. Historically, spin-offs can lead to increased market capitalization for companies if both resulting entities perform well independently. By having Vizsla Silver and Vizsla Royalties as two separate trading entities, investors can now choose to invest in either or both based on their risk appetite and investment goals. Vizsla Royalties will attract those interested in royalty streams, typically seen as less risky compared to direct mining operations.

Moreover, this strategic move can attract different investor demographics. Analysts often observe that a focused company can better communicate its value proposition to the market. However, it remains critical to gauge the market's reception when the new shares start trading and to watch for any volatility that might arise from the adjustment period.

NYSE: VZLA     TSX-V: VZLA

VANCOUVER, BC, June 20, 2024 /PRNewswire/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla Silver" or the "Company") is pleased to announce that it has received final TSX Venture Exchange ("TSX-V"") approval of the previously announced plan of arrangement ("Arrangement") to reorganize its business, including the spin-off of its wholly-owned subsidiary, Vizsla Royalties Corp. The Arrangement will close effective 12:01 a.m. on June 24, 2024. Existing common shares of Vizsla Silver will be delisted on the TSX-V effective on the close of business on June 21, 2024. New common shares of Vizsla Silver will commence trading on the TSX-V at the market opening on June 24, 2024.  The CUSIP number for the new common shares of Vizsla Silver will be 92859G608.

About the Panuco Project

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 17,856.5-hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.

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.

On January 8, 2024, the Company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ indicated mineral resource of 155.8 Moz AgEq and an in-situ inferred resource of 169.6 Moz AgEq (please refer to our Technical Report on Updated Mineral Resource Estimate for the Panuco Ag-Au-Pb-Zn Project, Sinaloa State, Mexico, by Allan Armitage, Ben Eggers and Peter Mehrfert, dated February 12, 2024 and to our Company´s press release dated January 8, 2024).             

About Vizsla Silver

Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla Silver has completed over 368,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver has budgeted +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.

In accordance with NI 43-101, Jesus Velador, Ph.D. MMSA QP, Vice President of Exploration, is the Qualified Person for the Company and has validated and approved the technical and scientific content of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOTE REGARDING FORWARD LOOKING STATEMENTS

The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Forward-looking statements in this news release include, among others, statements with respect to expected delisting of the old Vizsla Silver common shares and commencement of trading of the new Vizsla Silver common shares on the TSX-V.

Forward‐looking statements and forward‐looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of the Company, future growth potential for the Company 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 public health crises; costs of exploration and development; the estimated costs of development of exploration projects; the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect the Company'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 the Company 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 Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; ongoing military conflicts around the world; general economic factors; and the factors identified under the caption "Risk Factors" in the Company's management discussion and analysis and other public disclosure documents.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.  The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.

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SOURCE Vizsla Silver Corp.

FAQ

What is the effective date of Vizsla Silver's reorganization?

The effective date of Vizsla Silver's reorganization is June 24, 2024.

When will existing Vizsla Silver shares be delisted from the TSX-V?

Existing Vizsla Silver shares will be delisted from the TSX-V on June 21, 2024.

What is the new CUSIP number for Vizsla Silver shares?

The new CUSIP number for Vizsla Silver shares is 92859G608.

When will new Vizsla Silver shares start trading on the TSX-V?

New Vizsla Silver shares will start trading on the TSX-V on June 24, 2024.

What is the ticker symbol for Vizsla Silver?

The ticker symbol for Vizsla Silver is VZLA.