VIZSLA SILVER COMPLETES ACQUISITION OF LA GARRA-METATES DISTRICT
VANCOUVER, BC, Oct. 17, 2024 /PRNewswire/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla Silver" or the "Company") is pleased to announce that it has completed its acquisition (the "Acquisition") of the past-producing La Garra-Metates district (the "La Garra-Metates District" or "La Garra") situated in the heart of the silver-gold-rich Panuco – San Dimas corridor, previously announced on March 28, 2024.
The Acquisition was completed pursuant to a share purchase agreement dated March 27, 2024. The sellers are arm's length to Vizsla Silver.
The Company has agreed to make cash payments in an aggregate of US$3,075,000 in cash (collectively, the "Cash Payments") and issue an aggregate of 5,555,555 common shares in the capital of the Company (collectively, the "Consideration Shares") to the sellers at a deemed price of US$1.26 per share. The Cash Payments will be made and the Consideration Shares will be issued over a period of 24 months from the closing date of the Acquisition.
The sellers have agreed that 90% of the Consideration Shares (the "Restricted Consideration Shares") will be subject to voluntary resale restrictions as follows: 33% of the Restricted Consideration Shares will be restricted for a period of 12 months after the Closing Date, 33% of the Restricted Consideration Shares will be restricted for a period of 24 months after the Closing Date, and 33% of the Restricted Consideration Shares will be restricted for a period of 36 months after the Closing Date
The Company has paid an aggregate of US$1,606,500 in back taxes owing on the concessions comprising the La Garra-Metates District.
The Company has also granted the sellers 1% net smelter returns royalty ("NSR") on the La Garra-Metates District. The Company has the right to repurchase the NSR at any time for consideration equal to US$750,000.
The Company has granted Asteria Mining Services S.A.P.I. de C.V., an arm's length Mexican company, a 2% net smelter returns royalty on La Garra as a finder's fee in connection with the Acquisition.
About the La Garra-Metates District
The La Garra-Metates District area contains N-NNW-trending silver-gold-rich veins in a geological setting akin that of the Panuco Project and San Dimas. Epithermal veins dipping at steep and shallow angles to the east are hosted by andesites and felsic volcanic lavas and tuffs of the Lower Volcanic Series (LVS) like at the Panuco Project and San Dimas. Two main vein systems are known to date: the N-S trending La Garra with ~2.6 km of known strike length and the NW trending Cerro Verde – Las Playas vein system with ~1.8 km of strike length (see news release from March 28, 2024 for more details).
In December 2023, Vizsla Silver conducted a five-day site visit and collected 37 samples on vein outcrops and underground pillars on La Garra and Cerro Verde – Las Playas vein systems: fourteen rock-chip samples collected across veins ranging from 0.30 to 2.50 metres reported silver equivalent grades (AgEq) greater than 200 g/t (2.22 to 12.30 g/t Au and 22 to 1,156 g/t Ag). Base metals were detected in low concentrations
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