Elemental closes Vizsla Royalties deal, adds Panuco silver-gold royalty

Elemental Royalty Corporation closed its purchase of Vizsla Royalties on September 15, 2026. In plain terms, Elemental bought the right to a small slice of everything a Mexican silver-gold project produces — a 2.0-3.5% net smelter return royalty on Panuco, in the state of Sinaloa. A net smelter return royalty is a cut of the metal’s sale value paid off the top, before the operator counts its own costs. Elemental paid roughly C$82 million in cash and issued about 8.1 million shares. The former Vizsla Royalties holders now own about 11.19% of Elemental. Nobody at Elemental will run a drill or dig a hole here; another company, Vizsla Silver Corp., operates Panuco.

This is a corporate transaction, not an exploration release. There are no drill holes, no grades, no assay numbers to weigh — the announcement calls Panuco ‘high-grade’ and ‘large-scale’ but cites no grade, tonnage, or resource figure to back those words up. What Elemental buys is a place in the cash-flow line: if Panuco pours silver, a fixed percentage flows to Elemental without further spending. The company was formed only in November 2025, from a merger, so 2026 is its first full year as a combined entity. Its chief executive, David Cole, founded EMX Royalty and grew it from a C$3.3 million shell into a business with more than 250 assets — though EMX also traded below its net asset value for years and wrote off its Rawhide investment entirely. One unusual detail: the stablecoin issuer Tether holds about 32% of Elemental and put in $100 million of capital late in 2025. Over the past three months the stock rose 27.5% while silver itself fell 8.3% and the junior silver peer index sat flat at +0.8% — the shares moved on their own, not on the metal.

The cash flow depends on things Elemental does not control. Vizsla Silver says it needs its MIA environmental permit before making a construction decision, which management has targeted for the second half of 2026. First silver production — the event that would actually turn this royalty into cash — is not expected until the second half of 2027, according to Vizsla Silver’s public disclosures, and even that is contingent: Vizsla Silver says on-site work at Panuco has been paused since February 2026 pending security measures, with a return to site the company does not expect until the end of 2026. Vizsla Royalties shares delist around September 16, 2026. Remember the caveats: no resource estimate, grade, or tonnage appears in this release, so the ‘high-grade’ label comes from Elemental’s own CEO in the press release, not from an independent technical figure or a number you can check here.

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