TSX-V- and NYSE-listed Vizsla Silver is planning to make a strategic investment in CSE-listed Prismo Metals, with its eye on the Palos Verdes project as part of the consolidation of its land position in the Panuco-Copala district, in Mexico.
Vizsla has entered into a nonbinding letter of intent (LoI) with Prismo Metals, a company cofounded and advised by Peter Megaw. Pursuant to the LoI, the company plans to make a strategic investment with a right of first refusal (ROFR) to buy the Palos Verdes project from Prismo and four-million units of the company for a total of C$2-million.
“Since day one, the Vizsla team has believed that the Panuco-Copala district would become a major, well-endowed precious metals camp,” said president and CEO Michael Konnert.
“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,” he said.
“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.”
Following completion of the strategic investment, Vizsla will own or beneficially control about 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.
Vizsla says it aims to enter into definitive agreements by December 16, and the strategic investment is expected to close shortly thereafter.