Elemental Royalty (TSX:ELE) has entered into a definitive agreement to acquire Vizsla Royalties (TSX-V:VROY), securing a long-life royalty exposure to the Panuco Silver-Gold Project in Mexico.
Under the terms of the arrangement, each Vizsla Royalties shareholder will have the option to elect to receive 0.15 Elemental shares, C$4.13 in cash, or a combination of both. The total consideration for the deal is C$327 million ($329.24 million).
The transaction price represents a premium of 31% and 22% to the unaffected closing price and the 20-day volume weighted average trading price, respectively, of the Vizsla Royalties shares as at 12 May 2026.
All due diligence has been completed on the Panuco Project, including a comprehensive review of the technical data, project security, community relations, and ESG and sustainability frameworks.
Scotiabank is acting as financial advisor to Elemental, while Bennett Jones is acting as legal counsel. GenCap Mining is acting as financial advisor to Vizsla Royalties and Canaccord Genuity is acting as financial advisor to its special committee.
Forooghian + Company Law Corporation and Blake, Cassels & Graydon are acting as legal counsel to Vizsla Royalties.
Adding opportunities
Elemental Royalties CEO David Cole says as the first major transition for the company since the merger, the company is excited to acquire 2–3.5% net smelter return royalties on Panuco.
“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,” Cole says.
“We expect Panuco to become a cornerstone asset in the Elemental portfolio.”
Vizsla Royalties CEO Michael Pettingell says since the initial sprint out in 2024, the company has focused on providing long-term exposure to the world’s largest silver primary resource at Panuco.
“The successful consolidation of additional royalties interests at Panuco in 2025 marked an important step in advancing that objective,” Pettingell says.
“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.”
The Panuco Project, covering 9,800 hectares, is in an underexplored area of the western margin of the Sierra Madre Occidental, an emerging Western Mexico silver belt.
A Feasibility Study conducted in 2025 outlines the project has an annual production of 17.4 million ounces of silver-equivalent over a 9.4-year mine life, as well as more than 20 million ounces over the first five years.
Elemental Royalty is a mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 18 producing assets and more than 200 royalties.
Write to Aaliyah Rogan at Mining.com.au
Images: Elemental Royalty
