Mining
Thursday, February 29th, 2024 7:13 pm EDT
Key Points
- Completion of Bought Deal Offering: Vizsla Silver Corp. has successfully completed a bought deal prospectus offering of 23 million common shares at a price of $1.50 per share, generating gross proceeds of $34.5 million, which includes the full exercise of the underwriters’ overallotment option for three million shares. The offering was conducted by PI Financial Corp. as the lead underwriter, along with other underwriters, and completed pursuant to a prospectus supplement dated February 23, 2024.
- Utilization of Proceeds: The net proceeds from the offering will be directed towards advancing the exploration, drilling, and development of Vizsla Silver’s Panuco Project, located in southern Sinaloa, Mexico. Additionally, the funds will support working capital and general corporate purposes, indicating a strategic focus on enhancing operational activities and project development.
- Details about Panuco Project: The Panuco project is an emerging high-grade silver-gold discovery situated near Mazatlan, Mexico. It spans over 7,189.5 hectares and boasts significant vein extent and past producing mines. Vizsla Silver recently announced an updated mineral resource estimate for Panuco, revealing substantial in-situ indicated and inferred mineral resources, reinforcing the project’s potential. The company aims to de-risk its resource base and expand its mineral resource through extensive drilling activities across the district, aligning with its strategic objectives for 2024.
Vizsla Silver Corp. has completed its previously announced bought deal prospectus offering of 23 million common shares of the company at a price of $1.50 per offered share for aggregate gross proceeds of $34.5-million, which includes the exercise in full of the underwriters’ (as defined herein) overallotment option for three million offered shares.
The Offering was conducted by PI Financial Corp., as lead underwriter and sole bookrunner, and Canaccord Genuity Corp., CIBC World Markets Inc., Raymond James Ltd., Stifel Nicolaus Canada Inc. and BMO Nesbitt Burns Inc. (collectively, the “Underwriters”). In consideration for the services provided by the Underwriters in connection with the Offering, the Company paid to the Underwriter a cash commission equal to 6% of the gross proceeds raised under the Offering. As further consideration for the services provided by the Underwriters in connection with the Offering, the Company issued compensation warrants to the Underwriters, exercisable at any time on or before February 28, 2026, to acquire that number of common shares of the Company which is equal to 6% of the number of Offered Shares sold under the Offering at an exercise price of C$1.50. The Offering was completed pursuant to a prospectus supplement dated February 23, 2024 to the short form base shelf prospectus of the Company dated March 31, 2023 in each of the provinces and territories of Canada (except Quebec), in the United States on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable state securities laws and other jurisdictions outside of Canada and the United States on an exempt basis. The Offering remains subject to the final approval of the TSX Venture Exchange (the “TSX-V”).
The net proceeds of the Offering will be used to advance the exploration, drilling and development of the Company’s Panuco Project, as well as for working capital and general corporate purposes.
About the Panuco project
The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlan. The 7,189.5 hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits. The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.
On January 8, 2024, the Company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ indicated mineral resource of 155.8 Moz AgEq and an in-situ inferred resource of 169.6 Moz AgEq. The indicated mineral resource is estimated at 9.5 million tonnes (“Mt”) grading 289 grams per tonne (“g/t”) silver, 2.41 g/t gold, 0.27% lead, and 0.84% zinc (511 g/t silver equivalent). The mineral resource estimate includes indicated mineral resources of 88.2 million ounces (“Moz”) of silver, 736 thousand ounces (“koz”) of gold, 25.4 kilotonnes (“kt”) of lead, and 79.9 kt of zinc (155.8 Moz AgEq). The inferred mineral resource is estimated at 12.2 Mt grading 239 g/t silver, 1.93 g/t gold, 0.29% lead, and 1.03% zinc (433 g/t AgEq). The mineral resource estimate includes inferred mineral resources of 93.7 Moz of silver, 758 koz of gold, 35.4 kt of lead, and 125.3 kt of zinc (169.6 Moz AgEq). Silver equivalent is calculated using the following formula: AgEq = Ag ppm + (((Au ppm x Au price/gram) + (Pb% x Pb price/t) + (Zn% x Zn price/t))/Ag price/gram). Metal price assumptions are $24.00/oz silver, $1,800/oz gold, $2,425/t lead and $2,976/t zinc.
About Vizsla Silver
Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla Silver has completed over 350,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver is focused on de-risking the resource base located in the western portion of the district ahead of a development decision. Additionally, Vizsla Silver has budgeted +65,000 metres of resource/discovery-based drilling designed to upgrade and expand the Panuco Project’s mineral resource, as well as test other high priority targets across the district.
In accordance with NI 43-101, Jesus Velador, Ph.D. MMSA QP, Vice President of Exploration, is the Qualified Person for the Company and has validated and approved the technical and scientific content of this news release.
We seek Safe Harbor.
