Business
Vizsla Silver To Spin Out Net Smelter Royalty To Shareholders
VANCOUVER, BC, Jan. 17, 2024 /CNW/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla Silver" or the "Company") is pleased to announce it
About this update from Vizsla Silver Corp.
[{"type":"text","content":" VANCOUVER, BC, Jan. 17, 2024 /CNW/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) (\"Vizsla Silver\" or the \"Company\") is pleased to announce its intention to spin out the shares of Vizsla Royalties Corp. (\"Vizsla Royalties\"), a wholly-owned subsidiary of Vizsla Silver, to the Company's shareholders (the \"Spinout\"). Vizsla Royalties currently holds, indirectly, a net smelter royalty (the \"Royalty\") on any potential future mineral production at Vizsla Silver's flagship, 100% owned Panuco silver-gold project located in Sinaloa, Mexico (the \"Project\" or \"Panuco\"). The Royalty consists of: (i) a 2.0% net smelter return royalty on certain unencumbered concessions comprising the Project; and (ii) a 0.5% net smelter return royalty on certain encumbered concessions comprising the Project which have a pre-existing 3.0% net smelter return royalty (the \"Underlying Royalty\"). Vizsla Silver is also expected to: (i) transfer to Vizsla Royalties the right to purchase one-half of the 3% Underlying Royalty; (ii) grant Vizsla Royalties the right to acquire a royalty on any future projects acquired by Vizsla Silver in the 24-month period after completion of the Spinout, which right would automatically terminate upon a change of control of Vizsla Royalties or Vizsla Silver and (iii) make a cash injection into Vizsla Royalties. It is expected that the Spinout will be completed pursuant to a plan of arrangement under the Business Corporations Act (British Columbia). The Spinout would be subject to shareholder, court, stock exchange and regulatory approvals, as well as, at management's continued discretion. Pursuant to the Spinout, common shares of Vizsla Royalties would be distributed to shareholders of Vizsla Silver. Vizsla Silver is expected to hold approximately a 49% ownership interest in Vizsla Royalties, with the remaining shares of Vizsla Royalties being distributed to shareholders of Vizsla Silver on a pro-rata basis at a time to be determined by the board of directors of Vizsla Silver. There will be no change in shareholders' holdings in Vizsla Silver as a result of the Spinout. Subsequent to completion of the Spinout, the board of directors of Vizsla Royalties (the \"Vizsla Royalties Board\") may decide to pursue a listing on the TSX Venture Exchange if and when the Vizsla Royalties Board determine...