Vizsla Copper Corp. is ready to set its own course as it announced Monday night that it has completed the spinout transaction from Vizsla Silver Corp. (TSXV: VZLA). The newly-formed junior mining firm is meant to focus on Vizsla’s British Columbia copper exploration assets.
Following the proposed arrangement, Vizsla Silver shareholders received one-third of a Vizsla Copper share for every Vizsla Silver share held. The copper-focused company was able to issue a total of 49,217,108 common shares.
The company spun out Vizsla Copper to enable the new firm to focus on the wholly-owned Blueberry copper project and the option to acquire a 60% stake in Carruthers Pass copper property, both in British Columbia. Viszla Silver will continue to focus on the Panuco Copala silver-gold project in Mexico.
In connection to the arrangement, Vizsla Copper was also able to complete a non-brokered private placement for gross proceeds of $5.1 million, satisfying one of the conditions for the spinout transaction of completing at least a $3.5 million private placement. The recently closed offering issued 23,816,866 common shares at $0.15 per share and 8,306,331 flow-through common shares at $0.18 per share.
The company also received conditional approval to list its shares on the TSX Venture, also a requirement for the spinout. It is expected that it will soon trade on the exchange under the symbol “VCU”.
The newly spun-out firm will be led by Craig Perry as the executive chairman and Chris Donaldson as CEO. Perry is currently the chairman of the board for Vizsla Resources, Skeena Resources, and Outback Goldfields; Donaldson serves as the CEO of the latter.
After the transaction, Vizsla Copper has approximately $5.7 million in cash. including a cash transfer of approximately $1.1 million from Vizsla Silver, and a total of 81,340,305 outstanding common shares.
Vizsla Silver last traded at $2.48 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.