Elemental seals $239M Vizsla deal for Panuco royalties

Elemental Royalty Corporation, a Canadian mining firm, has successfully completed its $239 million acquisition of Vizsla Royalties Corp., gaining control over royalty rights on the Panuco silver-gold project in northwest Mexico. This strategic move expands Elemental's presence in the silver-gold sector, with potential annual production of up to 17.4 million ounces of silver-equivalent over a nine-year mine life.

Elemental CEO David M. Cole emphasized the project's potential, stating that the Panuco Royalties offer life-of-mine exposure to a high-grade, large-scale silver-gold project with strong district-scale exploration prospects. Despite security concerns in the region, including a recent abduction of 10 workers, Elemental assured that extensive due diligence has been conducted to mitigate risks.

The deal, first announced in May 2026, has now received approval through a plan of arrangement under the Business Corporations Act in British Columbia. This acquisition marks the largest in Elemental's history and its first since the 2025 merger between EMX Royalties and Elemental Altus Royalties. The Panuco Royalties grant Elemental uncapped, life-of-mine rights, encompassing all existing resources at the Panuco project with no buybacks or step-downs.

Shareholders of Vizsla Royalties were given the option to receive Elemental common shares or C$4.13 in cash per share, with a maximum cash consideration of C$82 million. After accounting for elections and proration, Elemental paid approximately C$82 million in cash and issued around 8.1 million new common shares, resulting in Vizsla shareholders owning roughly 11.19% of Elemental's outstanding shares.

Once completed, Vizsla's shares will be delisted from the TSX Venture Exchange and cease quoting on OTCQX. Elemental's stock price dipped 3.21% to C$28.33 per share by mid-day Tuesday, currently valuing the company at C$1.8 billion, while Vizsla shares fell 2.74% to C$4.25, valuing the company at C$306.7 million.