Elemental Royalty Corporation (NASDAQ, TSX: ELE) has completed its $239 million acquisition of Vizsla Royalties Corp. (TSX-V, OTCQX: VROY), gaining royalties on the Panuco silver-gold project in northwest Mexico.
The transaction adds 2% to 3.5% net smelter returns (NSR) royalties on the silver-gold Panuco project, which can produce up to 17.4 million ounces of silver-equivalent annually over an approximate nine year mine life, according to a feasibility study.
“The Panuco Royalties provide uncapped, life-of-mine exposure to a high-grade, largescale silver-gold project with a clear path toward production and significant district-scale exploration potential,” Elemental CEO David M. Cole said in a statement. “We look forward to partnering with the Vizsla Silver team as it advances Panuco and continues to unlock the broader district.”
The acquisition gives Elemental greater exposure to silver, a near-term pathway to production and substantial long-term exploration.
While safety concerns were raised about operating in the region following a security incident when 10 workers were abducted , Elemental said it had conducted extensive due diligence on the project.
The deal
The deal was first announced in May 2026 and has now been court-approved by a plan of arrangement under the Business Corporations Act in British Columbia. It is the largest in Elemental’s history and its first since the merger between EMX Royalties and Elemental Altus Royalties in 2025.
The Panuco Royalties are life-of-mine interests with no caps, buybacks or step-downs and cover the entire existing resources at Panuco.
Vizsla Royalties shareholders were able to elect to receive 0.15 Elemental common shares per share, C$4.13 in cash, or a combination of both, subject to a maximum cash consideration of C$82 million.
After the elections and proration, Elemental paid aggregate cash consideration of approximately C$82 million and issued approximately 8,107,478 Elemental common shares to former Vizsla Royalties shareholders. Former Vizsla Royalties shareholders now own approximately 11.19% of the outstanding Elemental common shares.
Vizsla’s shares are expected to be delisted from the TSX Venture Exchange on the close of business on September 16, 2026 and to cease to be quoted on the OTCQX.
Shares in Elemental were down 3.21% to C$28.33 apiece by mid-day Tuesday in Toronto, valuing the company at C$1.8 billion. Vizsla shares were down 2.74% to C$4.25, valuing the company at C$306.7 million ($220 million).
Source: https://www.mining.com/elemental-seals-239m-vizsla-deal-for-panuco-royalties/
