Elemental Royalty Corporation (NASDAQ: ELE | TSX: ELE), a royalty and streaming company, completed on September 15, 2026, the acquisition of all issued and outstanding shares of Vizsla Royalties Corp. (TSX-V: VROY | OTCQX: VROY) by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia).
Through the transaction, Elemental acquired the 2.0% to 3.5% net smelter return (NSR) royalties held by Vizsla Royalties on Vizsla Silver Corp.’s Panuco silver-gold project in Mexico. The royalties are perpetual, applying for the life of the mine, with no caps, buyback rights or step-downs, and cover all of the project’s existing resources.
Under the terms of the deal, Vizsla Royalties shareholders could elect to receive, for each share held, C$4.13 in cash, 0.15 of an Elemental common share, or a combination of both, subject to proration and a maximum aggregate cash consideration of approximately C$82 million. Elemental paid this amount and issued approximately 8.1 million common shares, leaving former Vizsla Royalties shareholders with an ownership stake of approximately 11.19% in Elemental.
The transaction was announced on May 13, 2026, and is valued at approximately C$327 million (US$239 million) on a fully diluted basis. Ahead of closing, Elemental obtained clearance from Mexico’s National Antimonopoly Commission on September 8, which the company described as the final regulatory milestone.
In Mexico, ALN Mining Law Firm advised Vizsla Royalties. The firm worked alongside the company’s in-house legal team and its external Canadian counsel to prepare and review the information required for Elemental’s due diligence, enabling Vizsla Royalties to deliver favorable opinions on compliance with the Mexican regulations governing the rights underlying its royalties, its principal asset. The engagement included reviewing the regulatory compliance of the mining assets, analyzing the registration of the royalties with the mining authority, conducting general due diligence on the underlying project, and drafting the relevant agreements.
Asked about the main challenge of the process, ALN noted that communication and meeting deadlines are typically the most demanding aspects of this type of transaction, which is why the firm maintained close contact with all teams involved to close the deal on schedule.
Legal Advisors
Advisors to Vizsla Royalties Corp.:
- ALN Mining Law Firm: Managing Partner Joel Antonio González Labrado; Partner Francis Javier Andujo Tarango; Associate David Almeida Madrid.
