Vizsla Copper Enters Into Agreement To Acquire RG Copper Corp: Adds Strategic Land Position Between Woodjam And Mount Polley

Author: Happy Mohamed | May 12, 2023 08:11am

Vizsla Copper Corp. (TSXV:VCU) (OTCQB:VCUFF) (FRANKFURT: 97E0) ("Vizsla Copper" or the "Company") is pleased to announce that it has agreed to acquire 100% of the issued and outstanding shares of RG Copper Corp. ("RG Copper") pursuant to a share exchange agreement (the "Acquisition Agreement") dated May 10, 2023 (the "Acquisition").

RG Copper has the right to acquire up to a 70% interest in the Redgold Copper-Gold Project (the "Redgold Project") pursuant to an option agreement entered into with the owners of the Redgold Project (the "Underlying Option Agreement").

Highlights

• District-Scale Opportunity: With the addition of the Redgold Project the Company's combined Woodjam-Redgold project area will cover 74,604 hectares of prospective geology in the Quesnel terrane of south-central British Columbia.
• Strategic Location: The Redgold Project is contiguous with the Company's Woodjam Copper-Gold Project (the "Woodjam Project") to the south and Imperial Metals' Mount Polley project to the north (see Figure 1).
• Strongly Mineralized: Five zones of copper-gold porphyry-related mineralization have been identified to date; East, Quarry, Northeast, North and Redgold. 
• East Zone Target: Previous drilling at the East zone intersected 0.21% Cu and 0.24 g/t Au over 152 metres in drill hole RG12-111.  This mineralization is open for expansion.
• High Grade Intersections: Previous drilling at the North zone intersected 2.87% Cu and 2.07 g/t Au over 8.1 metres in drill hole SH07-032.

"Our team has worked hard to assemble a district-scale project in the heart of the prolific Quesnel terrane" commented Craig Parry, Executive Chairman of Vizsla Copper. "We believe British Columbia will have a significant role in the predicted long-term copper bull market, and we plan to continue to position ourselves accordingly with value accretive acquisitions."

"I'm very pleased to announce this important property acquisition in the Woodjam area" commented Steve Blower, Vice President of Exploration of Vizsla Copper. "The Redgold Project has some impressive, drill-ready, copper-gold porphyry-related targets that we will aggressively explore."

Underlying Option Agreement

Pursuant to the terms of the Underlying Option Agreement, RG Copper may acquire up to 70% of the Redgold Project by meeting the following requirements:

• RG Copper will be the operator and must pay $500,000 ($50,000 paid), incur eligible expenditures of $2,000,000 and issue 400,000 common shares and an additional $400,000 in common shares prior to October 1, 2026 to earn a 51% interest.
• RG Copper has the option to increase its interest in the Redgold Project from 51% to 70% by paying an additional $500,000, incurring an additional $2,000,000 of eligible expenditures and issuing an additional $500,000 in common shares prior to October 1, 2028.
• RG Copper will grant the owners of the Redgold Project (the "Underlying Owners") a 2.5% net smelter royalty (subject to a buy down to 1.0% for $2,000,000), which will come into effect if and when the Underlying Owners' collective participating interest in the Redgold Project is diluted to less than or equal to 15%.
  • After the initial option or the extended option, a definitive joint venture agreement will be entered into.

Posted In: TSXV:VCU VCUFF VZLA