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Vizsla Copper (TSXV: VCU; US-OTC: VCUFF) is set to expand its British Columbia-focused exploration portfolio after striking a deal to acquire Universal Copper (TSXV: UNV) and its flagship Poplar project.
Considered one of the most advanced pre-production copper projects in the province, Poplar currently hosts an indicated resource of 152.3 million tonnes at 0.32% copper and an inferred 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.
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.
Once the deal is completed, UNV shareholders will own roughly 23.3% of Vizsla’s outstanding share capital. UNV shareholders will vote on the offer at an upcoming meeting.
Shares of Vizsla Copper gained 5% by midday Wednesday to 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 ($8.6m).
Universal Copper’s stock also gained 16.6% to C$0.018, with a market capitalization of C$1.9 million ($1.4m).
Comments
Michael James Bue
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. 1.7 billion lbs of copper?