A view of the Panuco project area. Credit: Vizsla Silver.
Vizsla Silver (TSX, NYSE: VZLA) said it agreed to buy the Santa Fe project in western Mexico, south of its Panuco silver-gold property, from a local investor. Shares jumped.
Vancouver-based Vizsla will have the option to acquire a 100% interest in certain production concessions that comprise Santa Fe by spending $4 million on exploration over five years, paying $1.5 million in cash and issuing the seller about 1.37 million shares, according to a statement issued Thursday. A 350 tonne-per-day mill that produces silver and gold is also included in the transaction.
Based on Wednesday’s New York Stock Exchange closing price of $2.25, the deal for the production concessions is worth about $8.6 million.
While the transaction is “not material in terms of consideration,” it “has potential for measurable resource accretion and supplemental…
