- Prismo Metals (PRIZ) has entered into a binding investment agreement with Vizsla Silver Corp. (VZLA)
- Vizsla will make a strategic investment in Prismo by acquiring 4 million units of Prismo for $2 million
- Vizsla will also acquire a right of first refusal to purchase the Palos Verdes Project from Prismo
- Prismo is a junior mining company focused on precious metal exploration in Mexico
- Prismo Metals Inc. (PRIZ) was down 5.77 per cent, trading at $0.49 at 11:49 ET
Prismo Metals (PRIZ) has signed a binding investment agreement with Vizsla Silver Corp. (VZLA).
Vizsla will acquire 4 million units of Prismo for $2 million.
Vizsla will also acquire a right of first refusal to purchase the Palos Verdes Project from Prismo.
The strategic investment will provide Prismo with a cash injection of $500,000 and the issuance of one million Vizsla shares valued at $1.5 million. This will provide Prismo shareholders with further exposure to the Panuco district in Mexico via an equity ownership position in Vizsla.
Both companies will form a joint technical committee to allow for the pursuit of district-scale exploration of the Panuco silver gold. The technical committee will be made up of one nominee from Prismo, one nominee from Vizsla and one nominee mutually acceptable by both parties.
Upon completing the investment, Vizsla will own approximately 10.1 per cent of Prismo on a basic basis and 14.4 per cent on a partially-diluted basis.
“The signing of the definitive agreement with Vizsla Silver comes on the heels of our recently completed financing of $3 million with three institutional investors,” noted Mr. Craig Gibson, President & CEO of Prismo.
Following the closing of the strategic investment by Vizsla, Prismo will be fully funded until 2024.
Prismo is a junior mining company focused on precious metal exploration in Mexico.
Prismo Metals Inc. (PRIZ) was down 5.77 per cent, trading at $0.49 at 11:49 ET.
