Vizsla Copper (TSX-V:VCU) is seeking shareholder approval for a share issue to Agnico Eagle Mines (NYSE:AEM) after closing the acquisition of the Delta and Helm Bay projects in Alaska, the US.
The Vancouver-based company acquired 100% of the Delta Base and Precious Metals Project and the Helm Bay Gold Project from Agnico Eagle Mines subsidiary Agnico Eagle (USA), making Agnico Eagle its largest shareholder.
Vizsla Copper issued around 22.53 million common shares at closing, representing roughly 19.99% of its issued capital on 8 September 2026. The shares carry a deemed price of C$1.26 ($1.28) each, valuing the consideration shares at about C$32.04 million ($32.6 million).
Agnico Eagle also received over 3 million warrants exercisable at C$1.95 for two years, alongside a 2% net smelter return royalty on Delta and a 3% net smelter return royalty on Helm Bay. Vizla Copper retains the right to buy back 50% of each royalty anytime for C$5 million.
A further estimated 2.9 million deferred consideration shares will be put to a vote at the annual and special meeting on 18 November 2026, which would lift Agnico Eagle’s interest to about 22%. If not issued by 31 January 2027, the company must issue an 18-month non-interest-bearing promissory note for their cash equivalent.
Milestone payments tied to Delta total C$20 million — C$5 million upon defining a mineral resource estimate (MRE) of at least 300,000 tonnes of copper equivalent (CuEq), C$5 million on completion of a Feasibility Study, and C$10 million upon commercial production, payable in cash or shares with a C$1.26 floor price.
Agnico Eagle is subject to a one-year lockup on the shares and warrants and holds board nomination and participation rights.
Delta covers 249 state mining claims across 16,123 hectares, 60km southwest of Tok in central Alaska. A 2006 historical inferred MRE outlines 15.4 million tonnes at 5.51% CuEq and 4.32 grams per tonne gold equivalent, though a qualified person has not completed sufficient work to classify it as a current MRE.
Helm Bay is an orogenic gold project 35km north of Ketchikan in southeast Alaska, hosting 17 documented occurrences across more than 10km of quartz vein strike length.
Historical pre-World War II production from the Upper and Lower Gold Standard mines totalled under 10,000 ounces of gold, with historical sampling averaging 10.4 grams per tonne and 11.2g/t Au respectively.
CEO Craig Parry says the company is now focused on integrating Delta and Helm Bay into its exploration strategy.
“With multiple drills still turning, a backlog of drill assays, and a healthy treasury that can fund us well into 2027, we look forward to delivering further exploration results throughout the remainder of 2026 and early 2027, including from our high-grade Palmer [Volcanogenic Massive Sulphide] Project in Alaska and portfolio of projects in British Columbia,” Parry says.
Vizsla Copper is a critical minerals-focused exploration and development company focused on its Palmer Volcanogenic Massive Sulphide Project in Southeast Alaska, and its Poplar and Woodjam porphyry-related projects in British Columbia, Canada.
Write to Paula Fabe at Mining.com.au
Main image: Vizla Copper
