Vizsla Royalties Receives Shareholder and Court Approval for Plan of Arrangement with Elemental Royalty
Vizsla’s court and shareholder approval clears the path for the Elemental acquisition, pending Mexican antitrust clearance.
Vizsla Royalties Corp. announced that shareholders overwhelmingly approved the plan of arrangement to acquire the company by Elemental Royalty Corporation, with 99.8% of votes cast in favor. The Supreme Court of British Columbia granted a final order approving the Arrangement on July 14, 2026. The transaction remains subject to customary closing conditions, specifically the approval of the National Antitrust Commission of Mexico.
Shareholder vote results show 41,190,690 shares voted (approx. 61.1% of outstanding), with 99.8% voting for the deal. Consideration options for shareholders include C$4.13 in cash, 0.15 Elemental common shares, or a combination, subject to a ~C$82M cash cap and proration. The deal values Vizsla at approximately C$327 million, representing a 31% premium to the unaffected closing price and a 22% premium to the 20-day VWAP as of May 12, 2026.
Vizsla Royalties Corp. (VROY) has secured 99.8% shareholder approval and a final order from the BC Supreme Court, clearing the primary domestic hurdles for its transaction. This procedural milestone de-risks the deal but does not introduce new fundamental value or unexpected catalysts. The news serves as a routine follow-up to the May 14, 2026 announcement, confirming management’s execution of the deal timeline without altering the underlying asset profile or project economics.
The primary remaining risk is Mexican antitrust approval. Until this is secured, the transaction remains contingent. The stock currently trades at approximately $3.27, which is below the cash consideration of $4.13 and the stock equivalent value, indicating the market is pricing in a discount for execution risk, regulatory delay, or integration uncertainty.
Vizsla Royalties Corp. (VROY) is a precious metals-focused royalty company whose principal asset is a 2.0%-3.5% Net Smelter Return (NSR) royalty on Vizsla Silver Corp.'s Panuco Project in the Western Mexico Silver Belt. The Panuco Project is a high-grade silver-gold development. A feasibility study completed in the fourth quarter of 2025 projects 17.4 moz AgEq annual production over a 9.4-year mine life, with an after-tax NPV(5%) of US$1.8 billion and an IRR of 111%. The company targets production for the second half of 2027. The royalty structure provides cash flow independence from operating costs, offering margin protection during low metal price environments.