Vancouver, British Columbia – (Newsfile Corp. – July 18, 2024) – vizsla franchise corp. (“vizsla royalties” or”company“) announced that it has entered into an agreement with Vizsla Silver Corp. (“vizsla silver”) by issuing 32,186,240 shares of the Company’s common stock (“common stock“) was transferred to Vizsla Silver (“debt trading shares”). The debt transaction shares were previously disclosed by Vizsla Silver on May 22, 2024.
All securities issued for debt transaction shares are subject to a statutory holding period, which expires on November 19, 2024.
Related Party Disclosure
Debt transaction shares constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 – Minority Security Holder Protection in Special Transactions (“MI 61-101“). The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 as a fair market value debt transaction for the Company The shares do not exceed 25% of the company’s market capitalization as determined in accordance with MI 61-101.
Early warning disclosure
Immediately before the closing of the stock-debt transaction, Vizsla Silver directly or indirectly beneficially owned 83,000,000 common shares, or exercised control or direction, representing 50.77% of the issued and outstanding common shares. After the closing of the share-debt transaction, Vizsla Silver owns 115,186,240 common shares, accounting for 58.86% of the issued and outstanding common shares.
Vizsla Silver acquires common shares as part of a debt transaction stake. Vizsla Silver intends to continually review its investments in the Company and may, from time to time and at any time, subject to market and other conditions, acquire additional equity or debt securities or instruments through public market transactions, private placements and other privately negotiated transactions, or otherwise , in each case, depends on a number of factors, including general market and economic conditions and other factors and conditions that Vizsla Silver deems appropriate.
The company’s headquarter address is Suite 1723, 595 Burrard Street, Vancouver, British Columbia V7X 1J1.
Vizsla Silver will file an alert report under applicable Canadian securities laws, which will be made available on the company’s SEDAR+ profile at www.sedarplus.ca. Copies of such reports may also be obtained from: Jennifer Hanson, Vizsla Silver Corporate Secretary, info@vizslasilver.ca.
About Vizsla Royalties
Vizsla Royalties Corp. is a royalty company focused on precious metals. The company’s primary asset is net smelter royalties from Vizsla Silver Corp.’s (TSX: VZLA) (NYSE: VZLA) flagship Panuco project in Mexico. Panuco is a world-class silver and gold development project that is actively advancing production. Panuco currently has an estimated in-situ Indicated Mineral Resource of 155.8 Moz AgEq and an in-situ Inferred Mineral Resource of 169.6 Moz AgEq (please see Vizsla Silver’s technical report on the updated Mineral Resource Estimate for the Panuco Ag-Au-Pb-Zn Project), Siena, Mexico Roya, by Allan Armitage, Ben Eggers and Peter Mehrfert, dated February 12, 2024).
Special Note Regarding Forward-Looking Statements
This press release contains certain “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 laws. Use of the words “anticipate,” “believe,” “estimate,” “expect,” “target,” “plan,” “forecast,” “may,” “would,” “could,” “timeline” in this release and similar words or expressions to identify forward-looking statements or information. These forward-looking statements or information relate specifically to: the development of the Company’s projects; and future mineral exploration, development and production.
Forward-looking statements and forward-looking information relating to any future mineral production, liquidity, value-added and capital market profiles of Vizsla Royalties, the future growth potential of Vizsla Royalties and its businesses, and future exploration plans are based on management’s reasonable assumptions, estimates, Expectations, analyzes and opinions, which are based on management’s experience and perception of trends, current conditions and anticipated developments, and other factors that management believes are relevant and reasonable under the circumstances, but may prove to be incorrect. Among other things, assumptions have been made regarding the price of gold and other metals; that the severity of the public health crisis has not escalated; the costs of exploration and development; the estimated costs of developing exploration projects; the ability of Vizsla Royalties to operate in a safe and efficient manner and the ability to obtain financing on reasonable terms.
These statements reflect Vizsla Royalties’ current views with respect to future events and are necessarily based on a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social adverse effects. deterministic effects, and unexpected events. There are many known and unknown factors that could cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, and Vizsla Royalties has made assumptions based on or related to many of these factors and estimates. These factors include, but are not limited to: the Company’s dependence on early-stage mineral projects; metal price fluctuations; risks associated with the Company’s conduct of mining activities; regulatory, consent or permitting delays; risks associated with reliance on the Company’s management team and external contractors; mineral resources and reserve risks; the inability of the Company to obtain insurance covering all risks on a commercially reasonable basis or at all; currency fluctuations; the risk of being unable to generate sufficient cash flows from operations; risks associated with project financing and equity issuances; inherent in all mining projects risks and unknowns, including inaccuracies in reserves and resources, metallurgical recoveries, and capital and operating costs of such projects; contests over property ownership, particularly over undeveloped properties; laws and regulations regarding environmental, health and safety regulations; the ability of the communities in which the company operates to manage and respond to the impact of the public health crisis; the economic and financial impact of the public health crisis on the company; operational or technical difficulties related to mining or development activities; employee relations, labor disputes or absenteeism; the company and surrounding areas Interactions with communities and artisanal miners; The Company’s ability to successfully integrate acquired assets; The speculative nature of exploration and development, including the risk of reserve or grade decline; Stock market volatility; Conflicts of interest among certain directors and officers; Lack of liquidity among the Company’s shareholders risks; ongoing military conflicts around the world; and the factors identified under the heading “Risk Factors” in Vizsla Royalties’ Management’s Discussion and Analysis. Readers are cautioned not to attribute undue certainty to forward-looking statements or forward-looking information. Although Vizsla Royalties 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 as anticipated, estimated or intended. Vizsla Royalties does not intend and undertakes no 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, except as required by applicable law.
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