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Prismo Metals and Vizsla Silver Sign Definitive Agreement for Strategic Investment and Right of First Refusal on Palos Verdes Project
Vancouver, British Columbia--(Newsfile Corp. - December 19, 2022) - Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) ("Prismo") is pleased to announce that it has
About this update from Prismo Metals Inc.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - December 19, 2022) - Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) (\"Prismo\") is pleased to announce that it has entered into a binding strategic investment agreement (the \"Definitive Agreement\") with Vizsla Silver Corp. (TSXV: VZLA, NYSE: VZLA, Frankfurt: 0G3) (\"Vizsla\"). Pursuant to the Definitive Agreement, Vizsla will make a strategic investment in Prismo by acquiring 4 million units of Prismo (the \"Prismo Units\"), for an aggregate consideration of $2 million (the \"Strategic Investment\"). Vizsla will also acquire a right of first refusal to purchase the Palos Verdes project from Prismo. Transaction Highlights of Strategic Investment The Strategic Investment will provide Prismo with a cash injection of $500,000 and the issuance of one million Vizsla shares valued at $1.5 million which will provide Prismo shareholders with further exposure to the Panuco district in Mexico via an equity ownership position in Vizsla. Prismo and Vizsla will form a joint technical committee to allow for the pursuit of district-scale exploration of the Panuco silver-gold. The technical committee will be comprised of one nominee from Prismo, one nominee from Vizsla and one nominee mutually acceptable by both parties. Following completion of the Strategic Investment, Vizsla will own approximately 10.1% of Prismo on a basic basis and 14.4% on a partially diluted basis. Mr. Craig Gibson, President & CEO of Prismo commented: \"The signing of the Definitive Agreement with Vizsla Silver comes on the heels of our recently completed financing of $3 million with three institutional investors. Following the closing of the Strategic Investment by Vizsla, Prismo will be fully funded until 2024. Our capital structure will remain strong with 28.7% of our shares being owed by management, directors and close advisors, 10.1 % owned by Vizsla and 14.6% owned by institutional investors.\" Dr. Gibson added: \"We look forward to working closely with Vizsla's team to advance our mutual understanding of the long-underexplored, high-grade silver-gold Panuco district in Mexico. We look forward to the combined Prismo-Vizsla brain-trust unraveling the geology to unlock the potential of Palos Verdes and the entire Panuco district.\" Transaction Details Vizsla will subscribe to 4 million Prismo Units (each a \"Unit\"...