Vizsla Copper Enters into Agreement to Acquire Rg Copper Corp: Adds Strategic Land Position Between Woodjam and Mount Polley
VIZSLA COPPER ENTERS INTO AGREEMENT
TO ACQUIRE RG COPPER CORP: ADDS
STRATEGIC LAND POSITION BETWEEN
WOODJAM AND MOUNT POLLEY
VANCOUVER, BC
,
May 12, 2023
/CNW/ - Vizsla Copper Corp. (TSXV: VCU) (OTCQB: VCUFF)
(
FRANKFURT
: 97E0) ("
Vizsla Copper
" or the "
Company
") is pleased to announce that it has
agreed to acquire 100% of the issued and outstanding shares of RG Copper Corp. ("
RG Copper
")
pursuant to a share exchange agreement (the "
Acquisition
Agreement
") dated
May 10, 2023
(the
"
Acquisition
").
RG Copper has the right to acquire up to a 70% interest in the Redgold Copper-Gold Project (the
"
Redgold Project
") pursuant to an option agreement entered into with the owners of the Redgold
Project (the "
Underlying Option Agreement
").
Highlights
District-Scale Opportunity:
With the addition of the Redgold Project the Company's combined
Woodjam-Redgold project area will cover 74,604 hectares of prospective geology in the
Quesnel
terrane of south-central
British Columbia
.
Strategic Location:
The Redgold Project is contiguous with the Company's Woodjam Copper-
Gold Project (the "
Woodjam Project
") to the south and Imperial Metals' Mount Polley project to
the north (see Figure 1).
Strongly Mineralized:
Five zones of copper-gold porphyry-related mineralization have been
identified to date; East, Quarry, Northeast, North and Redgold.
East Zone Target:
Previous drilling at the East zone intersected 0.21% Cu and 0.24 g/t Au
over 152 metres in drill hole RG12-11
1
. This mineralization is open for expansion.
High Grade Intersections:
Previous drilling at the North zone intersected 2.87% Cu and 2.07
g/t Au over 8.1 metres in drill hole SH07-03
2
.
"Our team has worked hard to assemble a district-scale project in the heart of the prolific
Quesnel
terrane"
commented
Craig Parry
, Executive Chairman of Vizsla Copper
. "We believe
British
Columbia
will have a significant role in the predicted long-term copper bull market, and we plan to
continue to position ourselves accordingly with value accretive acquisitions.
"
"I'm very pleased to announce this important property acquisition in the Woodjam area"
commented
Steve Blower
, Vice President of Exploration of Vizsla Copper
. "The Redgold Project has some
impressive, drill-ready, copper-gold porphyry-related targets that we will aggressively explore.
"
The Redgold Project
The Redgold Project consists of 58 mineral claims covering an area of 8,278 hectares contiguous
with Imperial Metals' Mount Polley project and Vizsla Copper's Woodjam project.
A total of 49 drill holes have previously been completed on the Redgold Project together with
numerous geochemical (ie., rock and soil) and geophysical (ie., induced polarization and magnetics)
surveys. Porphyry-related copper-gold mineralization was initially discovered in the early 1970's and
over the course of subsequent exploration programs, at least five zones of copper-gold
mineralization have been discovered. In each of the zones, copper-gold mineralization is associated
with late Triassic to early Jurassic alkaline monzonite or syenite stocks, dykes or intrusive breccias.
Redgold was most recently explored by Gold Fields in 2014 and the Project has been largely
dormant since. The most recent drilling was completed by Gold Fields in 2012. Drill hole RG12-11,
drilled at the East Zone, intersected 0.21% Cu and 0.24 g/t Au over 152 metres and cored 85.6
metres of syenite intrusive breccia, a common host rock for copper-gold ore at the adjacent Mount
Polley mine. Mineralization at the East Zone remains open to the northeast.
Figure 1 – Redgold Project Location
Figure 1 – Redgold Project Location (CNW Group/Vizsla Copper Corp.)
Acquisition Agreement
Pursuant to the Acquisition Agreement, the Company will issue 12,000,000 common shares in the
capital of the Company (the "
Consideration Shares
") to the shareholders of RG Copper (the
"
Vendors
").
The Consideration Shares will be subject to a four-month hold period pursuant to applicable
Canadian securities laws. In addition, the Vendors have agreed to voluntary resale restrictions
whereby 25% of the Consideration Shares will become free trading every six months after closing of
the Acquisition, with the first such release date to occur on the date that is six months from closing
of the Acquisition.
The Acquisition is subject to standard closing conditions, including the approval of the TSX Venture
Exchange (the "
TSXV
"). Subject to receiving the approval of the TSXV, and the satisfaction of the
remaining closing conditions, the Acquisition is expected to close on or about
May 23, 2023
.
All parties to the Acquisition are arm's length to the Company. No finder's fee is payable in respect
of the Acquisition.
Underlying Option Agreement
Pursuant to the terms of the Underlying Option Agreement, RG Copper may acquire up to 70% of
the Redgold Project by meeting the following requirements:
RG Copper will be the operator and must pay
$500,000
(
$50,000
paid), incur eligible
expenditures of
$2,000,000
and issue 400,000 common shares and an additional
$400,000
in
common shares prior to
October 1, 2026
to earn a 51% interest.
RG Copper has the option to increase its interest in the Redgold Project from 51% to 70% by
paying an additional
$500,000
, incurring an additional
$2,000,000
of eligible expenditures and
issuing an additional
$500,000
in common shares prior to
October 1, 2028
.
RG Copper will grant the owners of the Redgold Project (the "
Underlying Owners
") a 2.5%
net smelter royalty (subject to a buy down to 1.0% for
$2,000,000
), which will come into effect
if and when the Underlying Owners' collective participating interest in the Redgold Project is
diluted to less than or equal to 15%.
After the initial option or the extended option, a definitive joint venture agreement will be entered
into.
References
1
.
Eckfeldt, M. & Madsen, J. (2012)
Geological, Geochemical, Geophysical and Diamond
Drilling Assessment Report on the RedGold Property,
British Columbia
.
Gold Fields Horsefly
Exploration Corp. BC Geological Survey Assessment Report 33888.
2
.
Petsel, S.A. & Wikjord, T. (2008).
2007 Diamond Drilling and Geophysical Assessment Report
on the Shiko Lake Property.
NovaGold Resources Inc. BC Geological Survey Assessment
Report 29999.
Technical Information
All scientific and technical information in this news release has been prepared by or reviewed and
approved by
Ian Borg
, P.Geo., Senior Geologist for Vizsla Copper. Mr. Borg is a Qualified Person
for the purposes of National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
.
The data disclosed in this news release is related to historical drilling results. Vizsla Copper has not
undertaken any independent investigation of the sampling, nor has it independently analyzed the
results of the historical exploration work in order to verify the results. Vizsla Copper considers these
historical drill results relevant as the Company is using this data as a guide to plan exploration
programs. The Company's current and future exploration work includes verification of the historical
data through drilling.
Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of
mineralization hosted on the Redgold Project.
The Woodjam Project
The 74,604 ha Woodjam Project is located 55 kilometres east of the community of
Williams Lake
in
an area characterized by a low elevation, flat to gently undulating landscape that is well accessed by
logging roads. Geologically, the Woodjam Project is located within the prolific
Quesnel
terrane – a
large regional depositional belt commonly dominated by alkalic volcanic units and related
volcaniclastic lithologies. The
Quesnel
terrane hosts both alkaline and calc-alkaline porphyry
copper+/-gold+/-molybdenum deposits, including the Copper Mountain, New Afton, Highland Valley,
Mount Polley, Mount Milligan and Kemess mines.
To date, six zones of porphyry-related mineralization (Megabuck, Deerhorn, Takom, Three Firs,
Southeast, Megaton) have been identified at the Woodjam Project by drilling (95,092 metres in 281
holes since 2009 and a further 114 holes, 30,092 metres predominantly from 1998). These six
mineralized zones form a cluster approximately five kilometres in diameter.
About Vizsla Copper
Vizsla Copper is a Cu-Au-Mo mineral exploration and development company headquartered in
Vancouver, Canada
. The Company is focused on its flagship Woodjam Project, located within the
prolific
Quesnel
terrane, 55 kilometers east of the community of
Williams Lake, British Columbia
. It
has two additional copper exploration properties, the Blueberry and
Carruthers Pass
projects, well
situated amongst significant infrastructure in
British Columbia
. The Company will grow through the
exploration and development of the copper properties within its portfolio in addition to value accretive
acquisitions. Vizsla Copper's vision is to be a responsible copper explorer and developer in the
stable mining jurisdiction of
British Columbia, Canada
and is committed to socially responsible
exploration and development, working safely, ethically and with integrity.
Vizsla Copper is a spin-out of Vizsla Silver Corp. (TSX.V: VZLA) (NYSE: VZLA) and is backed by
Inventa Capital Corp., a premier investment group founded in 2017 with the goal of discovering and
funding opportunities in the resource sector. Additional information about the Company is available
on SEDAR (
www.sedar.com
) and the Company's website (
www.vizslacopper.com
).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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 relating to: obtaining the required TSXV approval(s); timing of completion of the
Acquisition; exploration and development of the Redgold Project and Woodjam Project; exercise of
the option pursuant to the terms of the Underlying Option Agreement; and the Company's growth
and business strategies.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that the results of planned exploration activities are as anticipated, the anticipated
cost of planned exploration activities, that general business and economic conditions will not change
in a material adverse manner, that financing will be available if and when needed and on reasonable
terms, that third party contractors, equipment and supplies and governmental and other approvals
required to conduct the Company's planned exploration activities will be available on reasonable
terms and in a timely manner. Although the assumptions made by the Company in providing forward-
looking information or making forward-looking statements are considered reasonable by
management at the time, there can be no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties
and other factors, which may cause actual events or results in future periods to differ materially from
any projections of future events or results expressed or implied by such forward-looking information
or statements, including, among others: negative operating cash flow and dependence on third party
financing, uncertainty of additional financing, no known mineral reserves or resources, the limited
operating history of the Company, the influence of a large shareholder, aboriginal title and
consultation issues, reliance on key management and other personnel, actual results of exploration
activities being different than anticipated, changes in exploration programs based upon results,
availability of third party contractors, availability of equipment and supplies, failure of equipment to
operate as anticipated; accidents, effects of weather and other natural phenomena and other risks
associated with the mineral exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining governmental or other approvals.
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.
SOURCE
Vizsla Copper Corp.
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For further information:
and to sign-up to the mailing list, please contact: Chris Donaldson, Chief
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CO: Vizsla Copper Corp.
CNW 08:00e 12-MAY-23