Vancouver, British Columbia, September 14, 2021 – Vizsla Silver Corp. (TSXV: VZLA) (OTCQB:
VIZSF) (Frankfurt: 0G3) (“Vizsla Silver” or the “Company”) is pleased to announce the effective date for the spin-out of its British Columbia copper assets to Vizsla Copper Corp. (“Vizsla Copper” or “SpinCo”)
is expected to occur at 12:01 a.m. on September 20, 2021 (the “Effective Date”).
Pursuant to the terms of the plan of arrangement (“Arrangement”), holders of common shares of Vizsla Silver on September 17, 2021 will receive one new common share of Vizsla Silver (each, a “Vizsla Silver
Share”) and 1/3 of a SpinCo share (each, a “SpinCo Share”). The existing common shares of Vizsla Silver are expected to be delisted from the TSX Venture Exchange (the “TSXV”) on September 17, 2021. Vizsla Silver Shares are expected to commence trading on the TSXV at the market open on September 20, 2021.
The CUSIP numbers for the new Vizsla Silver Shares and the SpinCo Shares will be 92859G202 and 92858X107, respectively.
Michael Konnert, President and Chief Executive Officer of the Company stated: “As all of our efforts continue to be focused on the Panuco silver-gold project in Mexico, we believe that the spin out of the Company’s early-stage copper assets will allow for independent advancement of otherwise non-core assets creating significant shareholder value.”
Computershare Investor Services Inc. (“Computershare”) will forward replacement certificates to each Vizsla Silver shareholder that is entitled to receive certificates, representing their allotted number of new
Vizsla Silver Shares and SpinCo Shares in accordance with the Arrangement. Letters of transmittal have been mailed to registered holders of common shares of Vizsla Silver, which must be completed and returned to Computershare together with the share certificates of Vizsla Silver at the address specified in the letter of
transmittal, in order for Vizsla Silver shareholders to receive new Vizsla Silver Shares and SpinCo Shares following the Effective Date. A copy of the letter of transmittal is also available under the Company’s profile
on SEDAR at www.sedar.com. For more information, see the Company’s management information circular dated May 14, 2021 filed under the Company’s profile on SEDAR at www.sedar.com.
Vizsla Copper Listing and Private Placement SpinCo has received conditional approval to list the SpinCo Shares on the TSXV. Final listing approval will
be subject to SpinCo satisfying all of the listing conditions of the TSXV. In connection with the Arrangement, SpinCo has received subscriptions for and intends to complete a non-brokered private placement for gross
proceeds of $5,067,669, consisting of 23,816,866 SpinCo Shares at a purchase price of $0.15 per share for proceeds of $3,572,530 million, and 8,306,331 flow-through SpinCo Shares at a purchase price of $0.18 per
flow-through share for proceeds of $1,495,140 million. The private placement is expected to close in connection with the commencement of trading of SpinCo Shares on the TSXV. SpinCo will announce by way
of a further press release the date on which trading of the SpinCo Shares will commence, which is expected to be before the end of September, 2021. The trading symbol for the SpinCo Shares will be “VCU”. In order
to satisfy TSXV listing requirements, Vizsla Silver has agreed to transfer cash to SpinCo in the amount of $1,122,356 in connection with the completion of the Arrangement.
Further details regarding Vizsla Copper are contained in Vizsla Copper’s TSXV Form 2B Listing Application, which is expected to be available under Vizsla Copper’s profile on SEDAR at www.sedar.com.
Eligibility for Registered Plans
As disclosed in the Company’s management information circular, the SpinCo Shares issued on the Effective
Date will be qualified investments for RRSPs, RRIFs, RESPs, TFSA and similar registered plans provided that the shares are listed on a “designated stock exchange” as defined in the Income Tax Act (Canada) as of
the Effective Date. The SpinCo Shares are not currently listed on a “designated stock exchange” and SpinCo is not otherwise a “public corporation” (as such term is defined in the Income Tax Act). Subject to SpinCo
satisfying the conditions of listing, the TSXV will list SpinCo Shares on the TSXV with trading halted as of September 17, 2021, thus rendering the SpinCo Shares issued on the Effective Date as unconditionally listed
on a “designated stock exchange” within the meaning of the Income Tax Act at the time of issuance.
About Vizsla Silver
Vizsla is a Junior mineral exploration and development company focused on advancing its flagship, 100%-
owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla has completed over 75,000
meters of drilling at Panuco leading to the discovery of several new high-grade veins. With an ongoing fully funded +100,000m drill program, the company is actively advancing towards delivering a maiden project
mineral resource in the first quarter of 2022 while in parallel continuing to explore the significant upside potential remaining in the district.
Contact Information: For more information and to sign-up to the mailing list, please contact:
Michael Konnert, President and Chief Executive Officer
Tel: (604) 364-2215 | Email: michael@vizslasilver.ca
Website: www.vizslasilvercorp.ca |
