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Vizsla Silver to Make Strategic Investment in Prismo Metals and Receive Right of First Refusal on the Palos Verdes Concession
Vancouver, British Columbia--(Newsfile Corp. - November 24, 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. - November 24, 2022) - Prismo Metals Inc. (CSE: PRIZ) (OTCQB: PMOMF) (\"Prismo\") is pleased to announce that it has signed a non-binding letter of intent (the \"LOI\") with Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (FSE: 0G3) (\"Vizsla\"). Pursuant to the LOI, Vizsla intends to make a strategic investment (the \"Strategic Investment\") for 4,000,000 units of Prismo (the \"Prismo Units\") for aggregate consideration of C$2,000,000 with Vizsla acquiring a right of first refusal (the \"ROFR\") to purchase the Palos Verdes project from Prismo (the \"Project\"). Transaction Highlights for Prismo The Strategic Investment will provide for a cash injection to Prismo of $500,000 and issuance to Prismo of $1.5 million in Vizsla shares which will provide Prismo shareholders further exposure to the district via equity ownership position in Vizsla Formation of joint technical committee will allow for the pursuit of district-scale exploration of Panuco silver-gold district via the formation of a joint technical committee Mr. Craig Gibson, President & CEO of Prismo comments, \"Prismo looks forward to welcoming Vizsla as a new shareholder and working closely with them to advance our mutual understanding of this long-underexplored, high-grade silver-gold district. 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 has agreed to subscribe for 4,000,000 units (each a \"Unit\") of Prismo. Each Unit consists of one common share of Prismo and one-half of one common share purchase warrant (each whole common share purchase warrant, a \"Warrant\"). Each Warrant entitles the holder to acquire one common share of Prismo at a price of C$0.75 for a period of two years. The consideration for the Strategic Investment will consist of a cash payment of C$500,000 at closing and 1,000,000 common shares of Vizsla (the \"Consideration Shares\"). Following completion of the Strategic Investment, Vizsla will own approximately 12.04% of Prismo on a basic basis and 17.03% on a partially diluted basis. The common shares received by Vizsla, and the Consideration Shares received by Prismo will be subject to (i) a regulatory four-month hold period and (ii) a voluntary hold period of up to t...