Canada's Vizsla Copper to Acquire Two Alaska Mineral Projects

en.Wedoany.com Reported - Canada's Vizsla Copper has signed a securities and asset purchase agreement with the U.S. subsidiary of Canadian gold producer Agnico Eagle to acquire a 100% interest in the Delta polymetallic project and the Helm Bay gold project located in the U.S. state of Alaska. The transaction is expected to close in the fourth quarter of 2026 and remains subject to customary conditions, including approval by the TSX Venture Exchange.

Delta is located in central Alaska, near the Alaska Highway, and is a volcanogenic massive sulfide project. The project has a historical inferred resource of approximately 15.4 million tonnes at average grades of 0.6% copper, 1.6% lead, 3.8% zinc, 62 g/t silver, and 1.7 g/t gold. The existing mineralized lenses still have extension potential, and several kilometers of undrilled electromagnetic anomaly conductors are present within the project area. This resource estimate is historical, and Vizsla Copper is not currently treating it as a mineral resource compliant with current standards.

Helm Bay is located in southeastern Alaska, near tidewater, and is an orogenic gold project. Historical exploration has identified multiple gold-bearing quartz veins, some of which are high grade, and the project has seen limited past production. Following completion of the transaction, Vizsla Copper will integrate these two projects with its existing Palmer volcanogenic massive sulfide project, expanding its base and precious metals exploration asset portfolio in Alaska.

Under the terms of the transaction, Agnico Eagle will receive 22,523,300 common shares of Vizsla Copper at closing, representing approximately 19.99% of the issued shares; following subsequent approval by disinterested shareholders, it will also receive 2,903,500 deferred consideration shares, which is expected to increase its ownership to approximately 22%. In addition, Agnico Eagle will receive 3,041,500 warrants exercisable at C$1.95 per share for a two-year term.

In this transaction, the consideration shares are priced at C$1.26 per share, for a total value of approximately C$32.04 million. Agnico Eagle will also retain a 2% net smelter return royalty on the Delta project and a 3% net smelter return royalty on the Helm Bay project; Vizsla Copper may buy back 50% of each royalty interest for C$5 million each.

The Delta project also includes milestone payments of up to C$20 million: C$5 million when the project's public resource reaches at least 300,000 tonnes of copper equivalent metal; an additional C$5 million upon completion of a feasibility study; and a further C$10 million upon achieving commercial production. The relevant payments may be made in cash or shares as provided in the agreement.

Following completion of the transaction, Agnico Eagle will also receive investor rights, including the right to nominate a member to Vizsla Copper's board of directors and participation rights in future equity financings, and has committed to participate in Vizsla Copper's first subsequent equity financing in an amount of up to C$5 million, provided that such financing is at least C$30 million in size and is completed on or before December 31, 2026.