Aerial panoramic view of a copper mine in the interior of British Columbia. Stock image.
Vizsla Copper (TSXV: VCU) is set to expand its British Columbia-focused exploration portfolio after striking a definitive deal for the acquisition of Universal Copper (TSXV: UNV) and its flagship Poplar project.
Considered as one of the most advanced pre-production copper projects in the province, Poplar currently hosts an indicated mineral resource of 152.3 million tonnes at 0.32% copper and an inferred mineral resource of 139.3 million tonnes at 0.29% copper.
The property covers 390 sq. km. of land in the province’s central interior region, and is located 35 km from the Huckleberry copper mine owned and operated by Imperial Metals (TSX: III).
In a news release, Vizsla said the combination of Poplar with its existing Woodjam, Redgold, Copperview and Carruthers Pass properties in BC offers shareholders exposure to a growing pipeline of projects.
The 901 sq. km. Woodjam project, located 55 km east of Williams Lake, has been the company’s main focus. It comprises three deposits with a historical mineral resource estimate totalling approximately 1.7 lbs of copper and just under 1 million ounces of gold.
“With unprecedented demand for copper globally on the horizon, I’m very pleased that we’ve been able to execute again on our strategy of acquiring promising assets during a period of challenging junior equity markets,” Craig Parry, executive chairman, stated.
VP exploration Steve Blower added that: “Poplar is a large, undeveloped porphyry-related copper and gold deposit in an easily accessible location with great infrastructure. Mineralization extends to the top of bedrock beneath minimal overburden, and UNV’s recent drilling results, including 432 metres at 0.42% copper, 0.15 g/t gold from 2.2 metres are impressive.”
Pursuant to the definitive purchase agreement, Vizsla will buy Universal’s shares on the basis of a 0.23:1 share exchange ratio, which represents a 60% premium based on the 10-day volume weighted price of UNV at C$0.015 as of Feb. 12, 2024.
Upon completion, UNV shareholders will own approximately 23.3% of Vizsla’s outstanding share capital. Completion will be subject to approval by the Supreme Court of British Columbia as well as the affirmative vote of UNV securityholders at an upcoming meeting.
Shares of Vizsla Copper gained 5% by midday Wednesday, trading at C$0.10 apiece. The copper junior, which spun out of Vizsla Silver (TSXV: VZLA) in 2021, has a market capitalization of C$11.3 million.
Universal Copper’s stock gained 16.6% to C$0.018 with a market capitalization of C$1.9 million.
Source: MINING.COM – Read More
