Vizsla Silver Corp. (TSXV: VZLA) announced this morning that its board has approved the spinout of its copper assets into Vizsla Copper Corp. This move is being made to make the copper exploration properties in British Columbia independent of the firms silver assets in Mexico.
Vizsla Copper shares will be distributed among Vizsla Silver shareholders at a rate of one Vizsla Copper share for every three Vizsla Silver shares held. The agreement is still subject to the approval of Vizsla Silver shareholders, expected to be decided at a special resolution virtual meeting on June 15, 2021.
The company reports that Viszla Copper is set to focus on the 100% owned Blueberry copper project and the option to acquire a 60% interest in the Carruthers Pass copper property, both in British Columbia. On the other hand, Viszla Silver will continue to focus on the operations at the Copala-Panuco silver-gold project in Mexico.
The move is being conducted as a means for the company to unlock shareholder value for its copper assets while remaining focused on its current silver projects. The spinout is conditional on a number of factors, including the approval for the listing of Vizsla Copper on the TSX Venture and a $3.5 million private placement financing.
Vizsla Silver Corp. last traded at $1.97 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.