Elemental Royalties Company (he(TSX) has signed a definitive transaction to acquire all issued and outstanding shares Vizsla Royalties Company (furry-TSXV, OTCQX) via a $327 million ($239 million USD) court-approved plan of arrangement.
Elemental aims to secure long-term equity exposure to the Panuco silver and gold project in Mexico.
Elemental is a mid-tier streaming and royalty-focused company with a portfolio of 18 production assets, over 200 franchises, and a projected revenue of $80 million in 2026.
Vizsla Royalties is a company that has been established for almost two years. Vizla Silver Company (Fazla-TSX, NYSE, 0G3 Frankfurt). It indirectly owns a net smelter royalty on any potential future mineral production from Vizsla’s 100%-owned Panuco silver-gold project in Sinaloa, Mexico.
The royalties consist of a 2.0% net smelter return royalty on certain unencumbered Panuco concessions, and a 0.5% net smelter return royalty on certain unencumbered concessions at the project, which have a pre-existing 3.0% net smelter royalty.
Under the terms of the Arrangement Agreement, each Vizsla Royalties shareholder will have the option to receive for each Vizsla Royalties share (1) 0.15 common shares of Elemental, (2) $4.13 in cash, or (3) a combination thereof, subject to rounding, based on a maximum total cash consideration of approximately $82 million. The total value of the deal is $327 million, or $4.13 per share. The transaction represents a premium of 31% and 22% over the unaffected closing price and 20-day weighted average trading price, respectively, of Vizsla Royalties shares on May 12, 2026.
Vizsla Royalties shares advanced on the news, rising 18.4%, or 61 cents, to $3.93. Shares are trading in a 52-week range of $5.20 to $1.93.
Elemental Royalties shares fell 1.24%, or 33 cents, to $26.24. Shares are trading in a 52-week range of $34.29 and $13.20.
The newly consolidated Panuco gold and silver project is an emerging high-grade discovery located in southern Sinaloa, near the city of Mazatlán, and 80 kilometers from… First Majestic Silver Company (AG-TSX, NYSE, FMV-FSE) San Dimas operation.
The 2025 feasibility study indicates production of 17.4 million ounces of annual silver equivalent (AgEq) over a mine life of 9.4 years, and more than 20 million ounces of AgEq per year over the first five years. This would make Panuco one of the top five primary silver assets by production globally.
The underground development is centered around the Copala and Napoleon deposits, where the ore is processed on site through a three-stage crushing and grinding circuit, followed by filtration and Merrill Crow extraction to produce gold and silver ore.
Vizsla Silver has a stated target of first silver in the second half of 2027, with major permit applications already in progress. The on-site test mine already provides mineralogical, geophysical and geotechnical data, while storing high-grade ore, providing significant de-risking.
Vizsla Silver announced it has completed drilling 395,000 meters of diamonds to date and expects to complete another 10,000 meters in 2026.
