Elemental Royalty Completes Acquisition of Vizsla Royalties

Elemental Royalty Corporation has completed its acquisition of Vizsla Royalties, a move that significantly enhances Elemental's portfolio with the addition of 2.0% to 3.5% net smelter returns (NSR) royalties on the Panuco silver-gold project in Mexico. The transaction, which was approved through a court-ordered plan of arrangement, marks a major step in Elemental's growth strategy.

Through this acquisition, Elemental has secured life-of-mine interests with no caps, buybacks, or step-downs on the Panuco project. The Panuco project, operated by Vizsla Silver Corp., is described as a high-grade, large-scale silver-gold project with a clear path toward production and significant district-scale exploration potential. The transaction is expected to provide Elemental with uncapped exposure to the project's production, offering long-term value.

The deal involved a combination of cash and Elemental common shares. Vizsla Royalties shareholders had the option to receive C$4.13 in cash, 0.15 of an Elemental common share, or a combination of both. Following the election and proration, Elemental paid approximately C$82 million in cash and issued approximately 8,107,478 Elemental common shares, resulting in former Vizsla Royalties shareholders owning about 11.19% of Elemental's outstanding common shares.

Elemental's CEO, David M. Cole, expressed enthusiasm about the acquisition, stating, "Closing the acquisition of Vizsla Royalties is another major step in Elemental's growth and adds one of the sector's most compelling development royalties to our portfolio. The Panuco Royalties provide uncapped, life-of-mine exposure to a high-grade, large-scale silver-gold project with a clear path toward production and significant district-scale exploration potential."

The transaction is expected to streamline Elemental's operations and enhance its position in the mining sector. With the integration of Vizsla Royalties, Elemental aims to leverage the expertise and resources of both companies to drive growth and exploration in the Panuco project. The former Vizsla Royalties shareholders are now part of Elemental's broader community, and the company looks forward to collaborating with the Vizsla Silver team to advance the Panuco project.

The acquisition is part of Elemental's strategy to expand its portfolio and capitalize on high-grade mining opportunities. The company's diversified asset base and focus on gold and silver streaming and royalties position it well for continued growth in the mining industry.