Vizsla Extends Exploration Period Of Panuco Option Agreements To 2022 (VZLA-TSX-V)
Vizsla Extends Exploration Period Of Panuco
Option Agreements To 2022
(VZLA-TSX-V)
VANCOUVER
,
May 13, 2020
/CNW/ -
Vizsla Resources Corp.
(TSX-V: VZLA) (OTCQB: VIZSF)
(
Frankfurt
: 0G3)
("
Vizsla
" or the "
Company
") announces that it has renegotiated the terms of the
Rio Panuco option agreement. Under the terms of the revised agreement, the option will be
extended by one year. Additionally, the Silverstone option period has been extended into 2022 and
the total
Panuco
mining district option payments between now and the beginning of 2022 will be
reduced by over
USD$4,100,000
from
USD$5,634,500
to
USD$1,480,000
.
The Rio Panuco option forms half of the consolidated
Panuco
mining district and includes the 500
tonne per day El Coco Mill. The Rio Panuco concessions contain the northern Animas, northern
Cordon del
Oro
and Napoleon veins that are the current focus of exploration and also contains
significant underground mine development. Additional infrastructure includes tailings facilities, roads,
power, ejido agreements and permits.
At the onset of the quarantine restrictions in
Mexico
due to COVID-19, the Company began to
review its options pertaining to force majeure clauses in the two option agreements to pause the
payment anniversaries. The Company ended the force majeure period on the Rio Panuco option by
mutual agreement with the amendments announced in this release while force majeure remains in
place on the Silverstone option until government agencies in
Mexico
return to a normal course of
business. The later registering of the Silverstone option agreement against the claim titles and the
force majeure period to date extends the anniversary dates of the Silverstone option by a projected
timeframe of four months from the original agreements and provides added time for exploration
ahead of the infrastructure purchase phase of the agreement in 2022, subject to the enforced
lockdown by Mexican authorities.
CEO
Michael Konnert
stated,
"Vizsla is now in the strongest position yet to execute the option and
become a near-term silver and gold producer at the
Panuco
district. Restructuring the Rio Panuco
agreement to extend the option period by one year and the extra runway on the Silverstone
agreements is a major success for the Company and shareholders. We now have more time to
undertake exploration at the
Panuco
project ahead of the infrastructure purchase component of the
option in 2022. These extensions fortify Vizsla's business plan of delineating an initial resource to
justify the execution of one or both options and enter into production. Building on the recent
excellent drilling and sampling results and the lifting of restrictions allowing drilling later this
month, the Company is making excellent progress towards its vision at the
Panuco
silver-gold
district."
Details of New Underlying Panuco District Options
INITIAL EXPLORATION PHASE OPTION
Year
Rio Panuco
Status
Silverstone
Status
Total District
2019
$ 450,000
- PAID -
$ 335,575
- PAID -
$ 785,575
2020
$ 280,000
$200k Due in Nov
-
$ 280,000
2021
$ 750,000
Due in August
$ 450,000
Due February*
$ 1,200,000
DISTRICT INFRASTRUCTURE AND PRODUCTION PURCHASE - OUTRIGHT FOR $41.88M
Year
Rio Panuco
Status
Silverstone
Status
Total District
2022
$ 2,600,000
Due in August
$ 2,134,500
Due in February*
$ 4,734,500
2023
$ 4,000,000
Due in August
$ 2,846,000
Due in February*
$ 6,846,000
2024
$ 5,000,000
Due in August
$ 3,557,500
Due in February*
$ 8,557,500
2025
$ 5,000,000
Due in August
$ 4,269,000
Due in February*
$ 9,269,000
2026
$ 5,000,000
Due in August
$ 6,407,425
Due in February*
$ 11,407,425
Grand
Total
$ 23,080,000
$ 20,000,000
$ 43,080,000
Table 1:
Updated Rio Panuco and Silverstone Deal Terms. *Current Force Majeure extension.
Vizsla has the right to accelerate all payments
About the
Panuco
project
Vizsla has an option to acquire 100% of the newly consolidated 9,386.5 Ha Panuco district in
southern
Sinaloa, Mexico
, near the city of Mazatlán. The option allows for the acquisition of over 75
km of total vein extent, a 500 tpd mill, 35 kms of underground mines, tailings facilities, 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.
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.
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 development of
Panuco
,
including potential drill targets; future mineral exploration, development and production including the
identification of drill targets and commencement of drilling; and completion of a maiden drilling
program.
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; 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: satisfaction or waiver
of all applicable conditions to closing of the Acquisition including, without limitation, receipt of all
necessary approvals or consents and lack of material changes with respect to Vizsla and Canam
and their respective businesses, all as more particularly set forth in the Acquisition agreement; the
synergies expected from the Acquisition not being realized; business integration risks; fluctuations in
general macro
economic conditions; fluctuations in securities markets and the market price of
Vizsla's common shares; and the factors identified under the caption "Risk Factors" in Vizsla's
management discussion and analysis. Readers are cautioned against attributing undue certainty to
forward
looking statements or forward-looking information. Although Vizsla has attempted to identify
important factors that could cause actual results to differ materially, there may be other factors that
cause results not to be anticipated, estimated or intended. Vizsla does not intend, and does not
assume any obligation, to update these forward
looking statements or forward-looking information to
reflect changes in assumptions or changes in circumstances or any other events affecting such
statements or information, other than as required by applicable law.
SOURCE
Vizsla Resources Corp.
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For further information:
and to sign-up to the mailing list, please contact: Michael Konnert,
President and Chief Executive Officer, Tel: (604) 838-4327, Email: [email protected]
CO: Vizsla Resources Corp.
CNW 08:30e 13-MAY-20