01:57 PM EDT, 03/28/2024 (MT Newswires) -- Vizsla Silver Corp. ( VZLA ) said Thursday that it has agreed to buy the La Garra-Metates district located in the silver-gold-rich Panuco - San Dimas corridor.

The company's shares edged up 3.5% on last look on Thursday.

On March 27, the company signed a share purchase agreement with Exploradora Minera La Hacienda S.A. de CV and Manuel de Jesus Hernandez Tovar.

Under the agreement, the company agreed to buy all of the outstanding shares of Goanna Resources SAPI de CV, a private Mexican entity, from the sellers. The target company is the owner of the La Garra-Metates District.

Vizsla Silver ( VZLA ) has agreed to make cash payments of US$3.1 million ($4.2 million) in cash and issue about 5.6 million common shares to the sellers.

The company is responsible for the back taxes owing on the concessions.

Within 90 days of the closing date, the company and the sellers will enter into a royalty agreement in a form satisfactory to the parties. The sellers will be granted a 1% net smelter returns royalty on the La Garra-Metates District.

The Buyer will have the right to repurchase such royalty at any time for consideration equal to US$750,000.

The company's stock rose 5.3% on last look on Thursday.

Price: 1.79, Change: +0.09, Percent Change: +5.29