Vizsla Silver Corp. (CVE:VZLA) (VIZSF) Stock gains After Announcing The News: How far can it Go?

Vizsla Silver Corp. (CVE:VZLA) (OTCMKTS:VIZSF) stock is witnessing mild gains in the opening session on Monday on moderate volume. The stock has been gaining momentum since the beginning of the year with a jump of 35%.

Market Reaction:

As of 10:02, VZLA stock moved up 6% to C$2.30 with more than 108K shares, compared to  its average volume of 369K shares. The stock has moved within a range of $2.1700 – 2.3400 after opening the trade at $2.17.

Major Trigger:

Vizsla Silver Obtains Shareholder and Court Approval of Spin-Out of Copper Exploration Assets and Closes the C$4 Million Non-Brokered Private Placement

• VZLA announced that at its special meeting of shareholders held June 15, 2021, all of the resolutions were duly passed, including the special resolution to approve the proposal plan of arrangement (the “Arrangement”) pursuant to which Vizsla Silver will spin-out its British Columbia copper exploration assets to Vizsla Copper Corp. (“Vizsla Copper” or “SpinCo”). Also, today the Supreme Court of British Columbia approved the Arrangement under the terms of the Business Corporations Act (British Columbia).
• Common shares of Vizsla Copper (the “SpinCo Shares”) will be distributed to shareholders of Vizsla Silver (the “Shareholders”) on the basis of one Vizsla Copper share for every three common shares of Vizsla Silver. The Arrangement will not result in any change to a shareholder’s ownership of Vizsla Silver. The majority of shareholders (those who hold their shares through their broker) will receive their SpinCo Shares with no further action.
• Once the Arrangement becomes effective, Shareholders will own shares in both public companies: (i) Vizsla Copper, which will focus on the 100% owned Blueberry copper project located in the Babine porphyry belt of Central British Columbia and the option to acquire a 60% interest in the Carruthers Pass copper property located 200 kilometres north of Smithers, British Columbia, and (ii) Vizsla Silver, which will continue to advance the Panuco Copala silver-gold project in Mexico.