VANCOUVER, BC, Nov. 24,
2022 /CNW/ - Vizsla Silver Corp. (TSXV: VZLA)
(NYSE: VZLA) (Frankfurt: 0G3)
("Vizsla" or the "Company") is pleased to announce it
has entered into non-binding letter of intent (the "LOI")
with Prismo Metals Inc. (CSE: PRIZ) ("Prismo"), a company
co-founded and advised by Dr. Peter
Megaw. Pursuant to the LOI, the Company intends to make a
strategic investment (the "Strategic Investment") with a
right of first refusal (the "ROFR") to purchase the Palos
Verdes project from Prismo (the "Project"), and 4,000,000
units of Prismo (the "Prismo Units"), for aggregate
consideration of C$2,000,000.
"Since day one, the Vizsla team has believed that the
Panuco-Copala district would become a major,
well-endowed precious metals camp," commented Michael Konnert, President and CEO. "Over the
last couple of years, in addition to announcing our large maiden
resource, Vizsla has worked to consolidate our land position and
has continued to acquire both small inlier and outlier concessions
in the area. We are the first company to deploy systematic, large
scale, modern exploration techniques in this area because we
believe that we have barely scratched the surface of potential
district-scale discovery. Vizsla believes Prismo has made a
meaningful discovery at Palos Verdes and the strategic investment
and right of first refusal over the Palos Verdes concessions
indicates our commitment to the long-term future of the Vizsla's
Panuco-Copala district."
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"). The Consideration Shares will be subject to a
statutory hold period of four months and one day from the closing
date, and a voluntary escrow period of 24 months with 25% of the
securities released every six months following the closing
date.
Each Prismo Unit will consist of one common share of Prismo (a
"Prismo Share") and one-half of one common share purchase
warrant (a "Prismo Warrant"). Each Prismo Warrant
will entitle Vizsla to purchase one additional Prismo Share for a
period of two years from the closing date at a price of
$0.75.
Following completion of the Strategic Investment, Vizsla will
own or beneficially control approximately 12.04% of the issued and
outstanding Prismo Shares on a basic basis or 17.03% on a partially
diluted basis.
In connection with the Strategic Investment, Prismo and Vizsla
have agreed to form a technical committee to pursue district-scale
exploration of the Panuco
silver-gold district.
The LOI forms the basis for finalizing definitive agreements in
respect of the Strategic Investment (the "Definitive
Agreements"). It is expected that the Definitive Agreements
will be entered into on or about December
16, 2022 and the Strategic Investment is expected to close
shortly thereafter. The closing of the Strategic Investment is
subject to the satisfaction of customary closing conditions for
transactions of this nature, including execution of the Definitive
Agreements and receipt by Vizsla and Prismo of all necessary
regulatory approvals.
About the Palos Verdes
concession
The Palos Verdes concession sits in the eastern area of Vizsla's
Panuco district and covers 700
meters of strike length of the Palos Verdes vein, a member of the
north-easterly trending vein family located in the eastern part of
the district outside of the area of modern exploration. Shallow
drilling (<100m) conducted in 2018
on the Palos Verdes Vein was targeted 30 to 50 meters beneath
largely barren vein outcrops and cut a well mineralized multistage
vein two to seven metres wide with narrow intervals of high-grade
precious metal values and subordinate base metals. This
mineralization is open in all directions and the currently planned
drilling program is designed to follow it along strike and to
depth.
Recent drilling at the concession has intercepted a wide vein
structure, and past drilling has returned encouraging results, with
the best being 2,336 g/t Ag and 8.42 g.t Au over a true width
estimated at 0.8 meters within a larger mineralized interval with
1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters.
About the Panuco project
The newly consolidated Panuco
silver-gold project is an emerging high-grade discovery located in
southern Sinaloa, Mexico, near the
city of Mazatlán. The 6,761-hectare, past producing district
benefits from over 86 kilometres of total vein extent, 35
kilometres of underground mines, roads, power, and permits.
The district contains intermediate to low sulfidation epithermal
silver and gold deposits related to siliceous volcanism and crustal
extension in the Oligocene and Miocene. Host rocks are mainly
continental volcanic rocks correlated to the Tarahumara
Formation.
Panuco hosts an estimated
in-situ indicated mineral resource of 61.1 Moz AgEq and an in-situ
inferred resource of 45.6 Moz AgEq. A NI 43-101 technical report,
titled "National Instrument 43-101 Technical Report for the Panuco
Project Mineral Resource Estimate Concordia, Sinaloa, Mexico" was filed on SEDAR
on April 7, 2022, with an effective
date of March 1, 2022 was prepared by
Tim Maunula, P.Geo., Principal
Geologist, T. Maunula & Associates Consulting Inc and
Kevin Murray, P.Eng, Manager Process
Engineering, Ausenco.
About Vizsla Silver
Vizsla Silver is a Canadian mineral exploration and development
company headquartered in Vancouver,
BC, focused on advancing its flagship, 100%-owned
Panuco silver-gold project located
in Sinaloa, Mexico. To date,
Vizsla has completed over 210,000 metres of drilling at
Panuco leading to the discovery of
several new high-grade veins. For 2022, Vizsla has budgeted
+120,000 metres of resource/discovery-based drilling, designed to
upgrade, and expand the maiden resource as well as test other high
priority targets across the district.
Qualified Person
In accordance with NI 43-101, Martin
Dupuis, P.Geo., COO, is the Qualified Person for the Company
and has reviewed and approved the technical and scientific content
of this news release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SPECIAL NOTE REGARDING FORWARD
LOOKING STATEMENTS
This news release includes certain "Forward‐Looking Statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward‐looking information"
under applicable Canadian securities laws. When used in this news
release, the words "anticipate", "believe", "estimate", "expect",
"target", "plan", "forecast", "may", "would", "could", "schedule"
and similar words or expressions, identify forward‐looking
statements or information. These forward‐looking statements or
information relate to, among other things: completion of the
Strategic Investment, the expected date of execution of the
Definitive Agreements, and future exploration and development of
the Company's projects, including the intended upgrade and
expansion of the maiden resource.
Forward‐looking statements and forward‐looking information
relating to any future mineral production, liquidity, enhanced
value and capital markets profile of Vizsla, future growth
potential for Vizsla and its business, and future exploration plans
are based on management's reasonable assumptions, estimates,
expectations, analyses and opinions, which are based on
management's experience and perception of trends, current
conditions and expected developments, and other factors that
management believes are relevant and reasonable in the
circumstances, but which may prove to be incorrect. Assumptions
have been made regarding, among other things, the price of silver,
gold, and other metals; no escalation in the severity of the
COVID-19 pandemic; costs of exploration and development; the
estimated costs of development of exploration projects; Vizsla's
ability to operate in a safe and effective manner and its ability
to obtain financing on reasonable terms.
These statements reflect Vizsla's respective current views with
respect to future events and are necessarily based upon a number of
other assumptions and estimates that, while considered reasonable
by management, are inherently subject to significant business,
economic, competitive, political and social uncertainties and
contingencies. Many factors, both known and unknown, could cause
actual results, performance, or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward‐looking statements or
forward-looking information and Vizsla has made assumptions and
estimates based on or related to many of these factors. Such
factors include, without limitation: the Company's dependence on
one mineral project; precious metals price volatility; risks
associated with the conduct of the Company's mining activities in
Mexico; regulatory, consent or
permitting delays; risks relating to reliance on the Company's
management team and outside contractors; risks regarding mineral
resources and reserves; the Company's inability to obtain insurance
to cover all risks, on a commercially reasonable basis or at all;
currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project
financing and equity issuances; risks and unknowns inherent in all
mining projects, including the inaccuracy of reserves and
resources, metallurgical recoveries and capital and operating costs
of such projects; contests over title to properties, particularly
title to undeveloped properties; laws and regulations governing the
environment, health and safety; the ability of the communities in
which the Company operates to manage and cope with the implications
of COVID-19; the economic and financial implications of COVID-19 to
the Company; operating or technical difficulties in connection with
mining or development activities; employee relations, labour unrest
or unavailability; the Company's interactions with surrounding
communities and artisanal miners; the Company's ability to
successfully integrate acquired assets; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; stock market volatility;
conflicts of interest among certain directors and officers; lack of
liquidity for shareholders of the Company; litigation risk; and the
factors identified under the caption "Risk Factors" in Vizsla'
management discussion and analysis. Readers are cautioned against
attributing undue certainty to forward‐looking statements or
forward-looking information. Although Vizsla has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be anticipated, estimated or intended. Vizsla does not
intend, and does not assume any obligation, to update these
forward‐looking statements or forward-looking information to
reflect changes in assumptions or changes in circumstances or any
other events affecting such statements or information, other than
as required by applicable law.
SOURCE Vizsla Silver Corp.