Elemental Royalty announced it has entered into a definitive agreement to acquire Vizsla Royalties Corp. in a transaction valued at approximately C$327 million (US$239 million), strengthening Elemental’s exposure to the Panuco silver-gold project in Mexico.
Under the agreement, Vizsla Royalties shareholders can elect to receive 0.15 Elemental shares, C$4.13 in cash, or a combination of both for each Vizsla Royalties share, subject to proration. The offer represents premiums of 31% to Vizsla Royalties’ unaffected closing price and 22% to its 20-day volume weighted average trading price as of May 12, 2026.
The acquisition gives Elemental ownership of uncapped 2.0% to 3.5% net smelter return royalties tied to the Panuco silver-gold project, including the Copala and Napoleon deposits. The royalties contain no buybacks or step-down provisions.
Elemental said the transaction adds a significant long-life development asset to its portfolio and is expected to contribute approximately 7,500 gold equivalent ounces annually once production begins. The company expects the Panuco project to become one of the cornerstone assets in its portfolio.
The Panuco project covers approximately 9,800 hectares in Mexico’s emerging Western Mexico Silver Belt. According to the 2025 feasibility study, the project is expected to produce 17.4 million silver equivalent ounces annually over an initial 9.4-year mine life, including more than 20 million silver equivalent ounces annually during the first five years of operation.
Elemental noted that the acquisition also increases its exposure to silver production while expanding its broader royalty portfolio, which currently includes more than 200 assets.
Vizsla Royalties shareholders will gain exposure to Elemental’s diversified portfolio of producing, development, and exploration royalties while maintaining indirect participation in the long-term potential of the Panuco project through ownership of Elemental shares.
The transaction is expected to close in the third quarter of 2026, subject to shareholder, court, stock exchange, and regulatory approvals, including approval from Mexico’s National Antitrust Commission.
Approximately 23% of Vizsla Royalties’ outstanding shares, including shares held by Vizsla Silver, are already subject to voting support agreements in favor of the transaction.
Scotiabank served as financial advisor to Elemental, while GenCap Mining Advisory Ltd. and Canaccord Genuity Corp. advised Vizsla Royalties and its special committee.
KEY QUOTES:
“As the first major transaction for our company since the merger with EMX, and the largest single-asset transaction in our history, we are excited to announce the acquisition of 2.0%-3.5% NSR royalties on the Panuco silver-gold project. This is an opportunity to add a high-grade, large-scale, silver-gold asset to our portfolio, allowing us to benefit, both in the near and longer-term, from a meaningful royalty with untapped exploration potential. We expect Panuco to become a cornerstone asset in the Elemental portfolio, and to deliver significant value to our shareholders over its life of mine. We are pleased to be partnering with the Vizsla Silver team on their path to demonstrating the full potential of the Panuco district while advancing the fully financed project towards production.”
David M. Cole, Chief Executive Officer, Elemental Royalty
“Since the initial spinout 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 crystalizes 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.”
Michael Pettingell, Chief Executive Officer, Vizsla Royalties
“Vizsla Royalties was founded with a clear purpose: to unlock additional value for Vizsla Silver shareholders while maintaining meaningful exposure to the long-term potential of the Panuco Project in a royalty vehicle. The successful consolidation of additional royalty interests at Panuco in 2025 marked an important step in advancing that objective. The combination with Elemental represents the natural culmination of this work and positions our shareholders to continue participating in Panuco’s future within a larger, diversified, and growth-oriented royalty portfolio. I am proud of what the Vizsla Royalties team has accomplished and am confident this transaction delivers a strong outcome for our shareholders.”
Michael Konnert, Executive Chairman, Vizsla Royalties
