Vizsla Silver Corp. (TSXV: VZLA) announced today that its shareholders have approved the company’s proposal to spin out its British Columbia copper exploration assets to Vizsla Copper Corp. The approval was handed down in a special shareholders’ meeting on June 15, 2021.
Following the proposed arrangement, Vizsla Copper common shares will be distributed to current Vizsla Silver shareholders at a rate of 1 Vizsla Copper share for every 3 Vizsla Silver shares held. The majority of the shareholders will get their Vizsla Copper shares with no action required, and there will be no change with respect to their stake in Vizsla Silver.
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.
The completion of the approved proposal is still subject to TSX Venture Exchange’s approval of the arrangement, approval of the listing of Viszla Copper shares on the exchange, and the completion of at least $3.5 million private placement by the recently spun-out copper company.
The arrangement is expected to be completed in July 2021.
The company also shared that it has recently completed the previously announced non-brokered private placement for total gross proceeds of $4.2 million. The offering was able to issue 1.7 million units at $2.50 per unit.
Each unit consists of one Viszla Silver common share and one-half of a common share purchase warrant. Each whole warrant is exercisable to purchase one common share at $3.25 within 18 months from closing.
The company intends to use the net proceeds for exploration and development of the Panuco Copala project, option payments and potential future acquisitions, along with working capital and general corporate purposes.
Vizsla Silver last traded at $2.17 on the TSX Venture.
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