Vizsla Copper Corp. (TSX-V: VCU) (OTCQB: VCUFF) (FSE: 97E0) is pleased to announce the closing of its previously announced marketed best efforts private placement for aggregate gross proceeds of approximately $6,002,000, including the full exercise of the over-allotment option. The Offering was led by PI Financial Corp. as sole bookrunner and lead agent.
“This financing demonstrates strong interest in great copper and gold projects,” commented Craig Parry, Executive Chairman. “Of the critical metals, we think copper is the most important of all – and with a large copper and gold resource base already defined, our shareholders are set to benefit from anticipated increases in metal prices in the years to come. The financing was strongly supported by Inventa Capital and existing shareholders. We are now in great shape to commence our planned 8000m high-impact summer drill campaign at Woodjam where we will be drilling near historic wide, high-grade copper and gold intercepts. We will also begin to test some of the many discrete magnetic anomalies we have identified in an area where the potential for discovery of porphyry mineralization has been demonstrated. Investors can expect strong news flow through the second half of the year as we drill on the this highly-prospective property.”
In connection with the Offering, the Company issued 9,100,000 units at a price of $0.22 per Unit for gross proceeds of $2,002,000, and 16,668,333 flow-through shares at a price of $0.24 per FT Share for gross proceeds of approximately $4,000,400.
Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole Warrant shall be exercisable into one additional Share for a period of 24 months following the closing of the Offering at an exercise price of $0.30 per Warrant Share.
The net proceeds raised from the Units will be used to fund the ongoing advancement of exploration and development at the Company’s exploration projects in British Columbia, and for working capital and general corporate purposes.
Each FT Share qualifies as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada). The gross proceeds from the sale of the FT Shares will be used before 2025 by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Tax Act related to the Company’s mineral exploration projects in British Columbia, Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2023.
In connection with the Offering, the Company paid the Agent a cash commission of $330,144 and issued 1,421,050 compensation options of the Company to the Agent. Each Compensation Option entitles the Agent to purchase one Share at an exercise price of $0.22 per Share for a period of 24 months following the closing of the Offering.
The Offered Securities are subject to a four-month and one day hold period under applicable Canadian securities laws. Closing of the Offering is subject to final approval of the TSX Venture Exchange.
Directors and officers of the Company subscribed for an aggregate of 2,125,200 FT Shares and 45,500 Units for gross proceeds of $520,058 under the Offering. Participation by insiders of the Company in the Offering constitutes a related-party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 as the common shares of the Company are listed on the TSX-V. The issuance of securities is also exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(b) of MI 61-101 as the fair market value was less than $2,500,000.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Vizsla Copper
Vizsla Copper is a Cu-Au-Mo mineral exploration and development company headquartered in Vancouver, Canada. The Company is focused on its flagship Woodjam Project, located within the prolific Quesnel terrane, 55 kilometers east of the community of Williams Lake, British Columbia. It has two additional copper exploration properties, the Blueberry and Carruthers Pass projects, and has recently entered into an agreement to acquire a third, the Redgold project, all of which are well situated amongst significant infrastructure in British Columbia. The Company will grow through the exploration and development of the copper properties within its portfolio in addition to value accretive acquisitions. Vizsla Copper’s vision is to be a responsible copper explorer and developer in the stable mining jurisdiction of British Columbia, Canada and is committed to socially responsible exploration and development, working safely, ethically and with integrity.
Vizsla Copper is a spin-out of Vizsla Silver Corp. (TSX.V: VZLA) (NYSE: VZLA) and is backed by Inventa Capital Corp., a premier investment group founded in 2017 with the goal of discovering and funding opportunities in the resource sector. Additional information about the Company is available on SEDAR (www.sedar.com) and the Company’s website (www.vizslacopper.com
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