Vizsla Copper Corp. Announces Closing of Spinout From Vizsla Silver and Closing of Private Placement
Vizsla Copper Corp. Announces Closing
of Spinout From Vizsla Silver and
Closing of Private Placement
VANCOUVER, BC, Sept. 20, 2021 /CNW/ - Vizsla Copper Corp.
("Vizsla Copper" or the "Company") is pleased to announce that the
plan of arrangement spinout transaction (the "Arrangement") has
closed effective September 20, 2021. Pursuant to the Arrangement,
holders of common shares of Vizsla Silver Corp. ("Vizsla Silver")
exchanged their Vizsla Silver shares for one new common share of
Vizsla Silver and 1/3 of a Vizsla Copper common share, for a total of
49,217,108 Vizsla Copper shares being issued to Vizsla Silver
shareholders under the Arrangement.
The Company's board of directors and executive officers are as
follows:
Craig Parry Director and Executive Chairman
Michael Konnert Director
Simon Cmrlec Director
Karlene Collier Director
Chris Donaldson Chief Executive Officer and Director
Grant Tanaka Chief Financial Officer
Jennifer Hanson Corporate Secretary
As previously disclosed by Vizsla Silver, the Company has received
conditional approval to list its shares on the TSX Venture Exchange
("TSXV"). Final approval is subject to the Company meeting certain
standard requirements of the TSXV. The Company expects to satisfy
all the requirements and will make a further announcement once the
TSXV has issued a bulletin confirming the date on which trading on
the TSXV will commence, which the Company expects to occur before
the end of September 2021. The trading symbol for the Company's
shares will be "VCU".
Closing of Private Placement
In connection with the Arrangement, the Company has completed a
non-brokered private placement for gross proceeds of
$5,067,669, consisting of 23,816,866 common shares at a purchase
price of $0.15 per share for proceeds of $3,572,530, and 8,306,331
flow-through common shares at a purchase price of $0.18 per flow-
through share for proceeds of $1,495,140. The Company paid finders'
fees in respect of the non-brokered private placement totaling $77,319
in cash and 507,960 finders' warrants each exercisable into one Vizsla
Copper share with a 12-month term and an exercise price of $0.25 per
share. The securities issued under the private placement are subject
to a four month hold period from the date hereof.
Certain officers and directors of the Company subscribed in the
private placement for total of 5,405,733 Vizsla Copper shares. As
related parties of the Company, their subscriptions are deemed to be
a "related party transaction" within the meaning of Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company relied on an exemption
from the formal valuation and minority shareholder approval
requirements set out in MI 61-101, as the fair market value of the
participation by directors and officers in the private placement did not
exceed 25% of the Company's fair market value calculated in
accordance with MI 61-101.
Available Funds and Shares Outstanding
After the payment of arrangement expenses, issuance costs and
amounts owing to Vizsla Silver, the Company has approximately $5.7
million in cash available, which includes a cash transfer of
approximately $1.1 million from Vizsla Silver. Available funds will be
used for, among other things, Phase 1 work programs on the
Blueberry property and Carruthers Pass property, property option
payments and general and administrative costs.
After completion of the Arrangement and the private placement, Vizsla
Copper has 81,340,305 common shares outstanding, 507,960
warrants outstanding and is obligated to issue up to 11,161,444
common shares pursuant to the exercise of Vizsla Silver warrants that
have expiry dates ranging from November 2021 to December 2022.
About Vizsla Copper
Vizsla Copper is a junior mineral exploration and development
company focused on its interests in British Columbia copper
properties, the Blueberry project, and the Carruthers Pass project.
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
This news release contains forward-looking statements or forward-
looking information relating to the future operations of the Company
and other statements that are not historical facts. Forward-
looking statements in this news release include, but are not limited to,
the ability to satisfy the final TSXV listing conditions; the expectation
that the Company's common shares will commence trading on the
TSXV before the end of September 2021; and the use of available
funds.
Forward-looking statements are based on the reasonable
assumptions, estimates, analyses and opinions of management made
in light of its experience and its perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which
may prove to be incorrect. Management believes that the assumptions
and expectations reflected in such forward-looking statements are
reasonable. Assumptions have been made regarding, among other
things: the Company's ability to carry on exploration and development
activities; the timely receipt of required approvals; the price of copper
and other metals; and the Company's ability to obtain financing as and
when required and on reasonable terms. Readers are cautioned that
the foregoing list is not exhaustive of all factors and assumptions
which may have been used.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from those expressed or implied by such forward-
looking statements. Such risks, uncertainties and other factors include
but are not limited to: the Company's early stage of development and
lack of history as a stand-alone entity; risks related to the COVID-19
pandemic; the fluctuation of the price of copper and other metals; the
availability of additional funding as and when required; the speculative
nature of mineral exploration and development; the timing and ability
to maintain and, where necessary, obtain necessary permits and
licenses; the uncertainty in geologic, hydrological, metallurgical and
geotechnical studies and opinions; infrastructure risks, including
access to water and power; environmental risks and hazards; risks
associated with negative operating cash flow; and risks associated
with dilution. For a further discussion of risks relevant to the Company,
see the Company's Listing Application available on SEDAR under the
heading "Item 21: Risk Factors".
Although management has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There is no
assurance that forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such forward-looking statements. Accordingly, readers
should not place undue reliance on forward-looking statements. The
Company does not undertake to update any forward-looking
statements, except as, and to the extent required by, applicable
securities laws.
SOURCE Vizsla Silver Corp.
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For further information: For more information and to sign-up to the
mailing list, please contact: Chris Donaldson, Chief Executive Officer
& Director, Email: [email protected]
CO: Vizsla Silver Corp.
CNW 21:35e 20-SEP-21