VIZSLA SILVER AGREES TO ACQUIRE NEWLY CONSOLIDATED PAST-PRODUCING SILVER DISTRICT IN THE EMERGING SILVER-GOLD-RICH PANUCO - SAN DIMAS CORRIDOR IN MEXICO
NYSE: VZLA TSX-V: VZLA
Highlights
- Large property package at 16,962 Ha (more than 2x the area of the Company's
Panuco project (the "Panuco Project ")). - While this district has seen past production dating back centuries, the
La Garra-Metates District has seen minimal exploration and no drilling. -
Vizsla Silver 's sampling demonstrated multi-kilo silver equivalent grades over several kilometers of strike. - Epithermal vein systems trending N-NNW in a geological setting akin that of the
Panuco Project andFirst Majestics Silver Corp. 'sSan Dimas project ("San Dimas "). - Potential for high-grade shoots along-strike and at depth on two known vein systems with estimated strike length of 2.6 km and 1.8 km, respectively.
- Significant potential to discover new veins given the underexplored nature of the district.
-
The La Garra-Metates District has been acquired for less than 3% ofVizsla Silver 's market capitalization.
"
About the
In
Sample # |
Vein |
Area |
Sample |
Ag |
Au |
Pb |
Zn |
AgEq |
|
|
|||||||||
(m) |
(g/t) |
(g/t) |
% |
% |
(g/t) |
|
|||
G566682 |
|
La Garra |
Dump |
22 |
7.00 |
0.05 |
0.02 |
495 |
|
G566683 |
|
La Garra |
Grab |
1 |
0.01 |
0.00 |
0.00 |
1 |
|
G566684 |
Rosita |
La Garra |
0.50 |
70 |
2.22 |
0.44 |
0.42 |
243 |
|
G566686 |
Rosita |
La Garra |
0.30 |
76 |
1.70 |
0.16 |
0.08 |
193 |
|
G566687 |
Rosita |
La Garra |
1.00 |
5 |
0.06 |
0.02 |
0.25 |
18 |
|
G566688 |
FW La Garra |
La Garra |
0.30 |
25 |
0.64 |
0.07 |
0.05 |
70 |
|
G566689 |
FW La Garra |
La Garra |
0.90 |
4 |
0.05 |
0.01 |
0.05 |
9 |
|
G566691 |
FW La Garra |
La Garra |
0.50 |
3 |
0.03 |
0.01 |
0.05 |
7 |
|
G566692 |
La Garra |
La Garra |
0.60 |
68 |
0.83 |
0.08 |
0.14 |
127 |
|
G566693 |
La Garra |
La Garra |
0.75 |
11 |
0.13 |
0.01 |
0.05 |
21 |
|
G566694 |
La Garra |
La Garra |
Dump |
110 |
1.71 |
0.10 |
0.09 |
224 |
|
G566696 |
|
La Garra |
Grab |
6 |
0.02 |
0.00 |
0.00 |
7 |
|
G566697 |
|
La Garra |
1.00 |
5 |
0.02 |
0.00 |
0.00 |
6 |
|
G566698 |
La Gigante |
La Garra |
1.10 |
87 |
0.49 |
0.00 |
0.01 |
115 |
|
G566699 |
La Gigante |
La Garra |
2.30 |
343 |
2.04 |
0.01 |
0.01 |
457 |
|
G566700 |
|
La Garra |
2.00 |
847 |
2.29 |
0.09 |
0.08 |
948 |
|
G566751 |
|
La Garra |
0.90 |
1,156 |
12.30 |
0.02 |
0.04 |
1,908 |
|
G566752 |
FW La Garra |
La Garra |
0.70 |
52 |
0.60 |
0.45 |
0.27 |
112 |
|
G566753 |
La Brillosa |
La Garra |
0.60 |
4 |
0.07 |
0.07 |
0.00 |
10 |
|
G566754 |
Nivel 4 |
|
1.30 |
641 |
3.08 |
0.12 |
0.17 |
814 |
|
G566756 |
|
|
Grab |
402 |
2.50 |
0.02 |
0.01 |
543 |
|
G566757 |
|
|
Dump |
627 |
10.10 |
0.39 |
0.51 |
1,295 |
|
G566758 |
|
|
1.30 |
36 |
0.39 |
0.01 |
0.01 |
60 |
|
G566759 |
|
|
2.50 |
99 |
0.52 |
0.01 |
0.03 |
128 |
|
G566760 |
|
|
2.00 |
885 |
6.03 |
0.02 |
0.02 |
1,231 |
|
G566761 |
|
|
1.10 |
56 |
0.55 |
0.00 |
0.00 |
89 |
|
G566762 |
|
|
0.90 |
17 |
0.19 |
0.00 |
0.00 |
29 |
|
G566763 |
|
|
0.60 |
203 |
2.40 |
0.01 |
0.01 |
351 |
|
G566764 |
|
|
1.20 |
498 |
4.33 |
0.01 |
0.00 |
756 |
|
G566766 |
Mina |
|
1.00 |
385 |
2.75 |
0.01 |
0.01 |
544 |
|
G566767 |
Mina |
|
1.00 |
6 |
0.05 |
0.00 |
0.00 |
9 |
|
G566768 |
Mina |
|
2.00 |
6 |
0.05 |
0.00 |
0.01 |
9 |
|
G566769 |
Mina |
|
2.00 |
4 |
0.21 |
0.00 |
0.01 |
18 |
|
G566771 |
Mina |
|
1.80 |
4 |
0.02 |
0.00 |
0.01 |
5 |
|
G566772 |
|
|
0.30 |
71 |
0.50 |
0.01 |
0.00 |
100 |
|
G566773 |
Manto Gaby |
|
1.00 |
226 |
2.08 |
0.00 |
0.00 |
351 |
|
G566774 |
|
|
1.00 |
1 |
0.01 |
0.00 |
0.00 |
1 |
|
Table 1: Assays from rock samples collected on veins at La Garra.
Note: AgEq = Ag g/t x Ag rec. + ((Au g/t x |
Terms of the acquisition
The Company entered into a share purchase agreement (the "Acquisition Agreement") dated
Pursuant to the Acquisition Agreement, the Company has agreed to make cash payments in an aggregate of
The Cash Payments will be made, and the Consideration Shares will be issued over a period of 24 months from closing.
The Company is responsible for the back taxes owing on the concessions.
Royalty Agreement
Within 90 days of the closing date, the Company and the Sellers shall enter into a royalty agreement in a form satisfactory to the Parties, pursuant to which the Sellers will be granted a 1% net smelter returns royalty ("NSR") on the
Pledge Agreement
Within 90 days of the closing date, the Company shall execute and deliver to the Sellers a pledge and security agreement in a form satisfactory to the Company and the Sellers and take such other actions sufficient under applicable Laws to grant the Sellers a first priority lien on the Purchased Shares to secure the Company's obligations with regards to the acquisition costs.
Finder's fees
The finder's fees is 2% NSR of the project payable to an arm's length
The Acquisition is subject to standard closing conditions, including the approval of the
About the
The newly consolidated
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.
On
About
Quality Assurance / Quality Control
Drill core samples were shipped to ALS Limited in
Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.
Qualified Person
In accordance with NI 43-101,
Information Concerning Estimates of Mineral Resources
The scientific and technical information in this news release was prepared in accordance with NI 43-101 which differs significantly from the requirements of the
You are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, "inferred mineral resources" are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the
Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7. Effective
Neither
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: the exploration, development, and production at the
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of
These statements reflect
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