Vizsla Royalties has an interest in the Panuco silver-gold project, which has projected annual production of 17.4moz of silver equivalent over an initial mine life of 9.4 years. Credit: Phawat/Shutterstock.com.

Elemental Royalty has signed a definitive agreement to acquire Vizsla Royalties for C$327m ($239m) to secure a strategic interest in the Panuco silver-gold project in Mexico.

Under the arrangement, Elemental will acquire all outstanding common shares of Vizsla Royalties through a court-approved plan.

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Vizsla Royalties shareholders can choose to receive either 0.15 shares of Elemental, C$4.13 in cash, or a combination, for each share they hold.

This offer is subject to a proration limit with a maximum cash payout of C$82m.

The total transaction includes a premium of 31% on the last closing price and 22% over the 20-day average trading price as of 12 May 2026.

The acquisition combines Vizsla Royalties’ interest in the Panuco silver-gold project with Elemental’s diverse, income-generating portfolio.

It provides access to a development royalty and is expected to contribute roughly 7,500 gold equivalent ounces annually once in production, enhancing Elemental’s silver exposure.

The royalty ranges from 2% to 3.5% net smelter returns, with no provisions for buybacks or reductions.

There is also significant exploration potential in the under-explored area, potentially boosting liquidity and strengthening Elemental’s market position.

The 2025 feasibility study projects an annual production of 17.4 million ounces (moz) of silver equivalent over an initial mine life of 9.4 years.

For the first five years, production is expected to exceed 20moz annually.

The underground development will focus on the Copala and Napoleon deposits.

The deal requires approval from Vizsla shareholders and regulatory bodies, and is expected to close in the third quarter of 2026.

Vizsla Royalties CEO Michael Pettingell said: “Since the initial spin-out of Vizsla Royalties in 2024, we have focused on value creation for shareholders and providing long-term exposure to the world’s largest, high-grade silver primary resource at Panuco.

“Today’s announcement not only crystalises that value but also provides the opportunity for our shareholders to continue to participate in the long-term upside potential at Panuco, along with immediate exposure to Elemental’s diversified, cash-flowing royalty portfolio.”