Vizsla Silver Announces Update ON Royalty Spinout
VIZSLA SILVER ANNOUNCES UPDATE ON
ROYALTY SPINOUT
NYSE: VZLA TSX-V: VZLA
VANCOUVER, BC
,
Feb. 12, 2024
/CNW/ -
Vizsla Silver Corp.
(TSXV: VZLA) (NYSE: VZLA) (
Frankfurt
:
0G3) ("
Vizsla Silver
" or the "
Company
") is pleased to announce that, further to its news release dated
January 17, 2024
, it intends to enter into an arrangement agreement with its wholly-owned subsidiary Vizsla
Royalties Corp. ("
Spinco
") within 45 days of this news release in respect of the spinout of the shares of
Spinco to the Company's shareholders (the "
Spinout
"). Spinco currently holds, indirectly, a net smelter royalty
on any future mineral production at Vizsla Silver's flagship, 100% owned
Panuco
silver-gold project located in
Mexico
.
The Company further announces that holders of its common shares (the "
Vizsla Silver Shares
") will be
entitled to 1/3 of a common share of Spinco and 1/3 of a common share purchase warrant of Spinco for each
Vizsla Silver Share held on the share distribution record date.
Additional details regarding the Spinout, including the share distribution record date, will be disclosed as they
become available.
Shareholders are invited to contact Vizsla Silver via email at
for additional information
regarding the Spinout.
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 7,189.5 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.
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 350,000 metres of drilling at
Panuco
leading to the discovery of several
new high-grade veins. For 2024, Vizsla Silver is focused on de-risking the resource base located in the
western portion of the district ahead of a development decision. Additionally, Vizsla Silver has budgeted
+65,000 metres of resource/discovery-based drilling designed to upgrade and expand the Project's 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.
SPECIAL 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
relating to: timing, structure and completion of the Spinout; the terms of the Spinout; and exploration,
development, and production at
Panuco
.
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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For further information:
and to sign-up to the mailing list, please contact: Michael Konnert, President and
Chief Executive Officer, Tel: (604) 364-2215, Email: [email protected], Website: www.vizslasilvercorp.ca
CO: Vizsla Silver Corp.
CNW 08:00e 12-FEB-24