VIZSLA SILVER ANNOUNCES $65 MILLION BOUGHT DEAL FINANCING

Rhea-AI Summary

Vizsla Silver Corp. (VZLA) has announced a $65 million bought deal financing through the issuance of 25,000,000 common shares at $2.60 per share. The offering, led by Canaccord Genuity, includes an over-allotment option for an additional 15% of shares, potentially increasing the total gross proceeds to $74,750,000. The company plans to use the net proceeds to advance its Panuco Project, as well as for working capital and general corporate purposes. The offering is expected to close around September 19, 2024, subject to regulatory approvals. The shares will be offered via a prospectus supplement in Canada and the United States, with documents available on SEDAR+ and EDGAR.

Positive

• Secured $65 million in financing through a bought deal offering
• Potential for additional $9.75 million through over-allotment option
• Funds to be used for advancing the Panuco Project exploration and development

Negative

• Potential dilution of existing shareholders due to the issuance of 25,000,000 new common shares
• Additional dilution possible if over-allotment option is exercised

Financial Analyst

Vizsla Silver's $65 million bought deal financing is a significant capital raise, indicating strong investor confidence. The $2.60 per share price suggests a premium valuation. This infusion will substantially bolster the company's balance sheet, providing ample funds for advancing the Panuco Project. The 15% over-allotment option could potentially increase proceeds to $74.75 million, further strengthening their financial position.

The use of proceeds for exploration, drilling and development of Panuco demonstrates a clear focus on value creation. This capital injection should accelerate project timelines and potentially de-risk the asset. However, investors should note the dilutive effect on existing shareholders. The market's reaction will be important to watch, as it will indicate investor sentiment towards this expansion strategy.

Mining Industry Expert

The substantial financing for Vizsla Silver's Panuco Project signifies a major step in its development. Silver projects of this scale are relatively rare, making this a noteworthy event in the mining sector. The company's ability to secure this level of funding in the current market environment is impressive and speaks to the project's potential.

Advancing exploration and drilling at Panuco could lead to resource expansion and improved project economics. This aggressive capital deployment strategy could position Vizsla as a more prominent player in the silver mining space. However, execution risks remain and investors should monitor the company's ability to effectively utilize this capital to generate tangible results and progress the project towards production.

The offering documentation is or will be accessible through SEDAR+ and EDGAR

VANCOUVER, BC, Sept. 16, 2024 /PRNewswire/ - Vizsla Silver Corp. (TSXV: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) ("Vizsla" or the "Company") is pleased to announce that it has entered into an agreement with Canaccord Genuity as sole bookrunner, on behalf of itself and syndicate of underwriters (the "Underwriters"), pursuant to  which the Underwriters have agreed to purchase, on a bought deal basis, 25,000,000 common shares (the "Common Shares"), at a price of $2.60 per Common Share, for gross proceeds of approximately $65,000,000 (the "Offering").

The Company has granted the Underwriters an option (the "Over-Allotment Option"), exercisable at the offering price for a period of 30 days after and including the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about September 19, 2024 and is subject to the Company receiving all necessary regulatory approvals.  In the event that the Over Allotment Option is exercised in full, the total gross proceeds of the Offering will be $74,750,000.

The Company currently intends to use the net proceeds of the Offering to advance the exploration, drilling and development of the Company's Panuco Project, as well as for working capital and general corporate purposes as set out in the Prospectus Supplement (as defined below).  

The Common Shares will be offered by way of a prospectus supplement (the "Prospectus Supplement") in all of the provinces and territories of Canada, other than Quebec, pursuant to the Company's base shelf prospectus dated March 31, 2023 (the "Base Shelf Prospectus"), and will be offered in the United States pursuant to a prospectus supplement (the "US Prospectus Supplement") filed as part of an effective registration statement on Form F-10 (the "Registration Statement") filed under the Canada/U.S. multi-jurisdictional disclosure system. Before investing, prospective purchasers in Canada should read the Prospectus Supplement, the Base Shelf Prospectus, and the documents incorporated by reference therein, and prospective purchasers in the United States should read the US Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement and the documents incorporated by reference therein for more complete information about the Company and the Offering.

Copies of the applicable offering documents, when available, can be obtained free of charge under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Delivery of the Base Shelf Prospectus and the Prospectus Supplement and any amendments thereto will be satisfied in accordance with the "access equals delivery" provisions of applicable Canadian securities legislation. An electronic or paper copy of Prospectus Supplement, the US Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement, when available, may be obtained, without charge, from Canaccord Genuity by phone at 416-869-3052 or by e-mail at ecm@cgf.com by providing Canaccord Genuity with an email address or address, as applicable.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Vizsla Silver Corp.

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 380,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver has budgeted +45,000 metres of resource/discovery-based drilling designed to upgrade and expand the mineral resource, as well as test other high priority targets across the district.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This news release includes certain "Forward‐Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward‐looking information" under applicable Canadian securities laws, including those regarding the terms of the Offering and the expected completion and use of proceeds thereof, which ultimately remains the subject of the Company's discretion. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward‐looking statements or information.

Forward‐looking statements and forward‐looking information are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold, and other metals; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla Silver's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect Vizsla Silver's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward‐looking statements or forward-looking information and Vizsla Silver has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Prospectus Supplement, the US Prospectus Supplement and Vizsla Silver's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐looking statements or forward-looking information. Although Vizsla Silver has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Vizsla Silver does not intend, and does not assume any obligation, to update these forward‐looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

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SOURCE Vizsla Silver Corp.

FAQ

What is the price per share for Vizsla Silver's (VZLA) new financing deal?

Vizsla Silver Corp. (VZLA) is offering common shares at a price of $2.60 per share in its new financing deal.

How much money is Vizsla Silver (VZLA) raising through this financing?

Vizsla Silver Corp. (VZLA) is raising approximately $65 million through this bought deal financing, with the potential to increase to $74,750,000 if the over-allotment option is fully exercised.

When is the expected closing date for Vizsla Silver's (VZLA) financing deal?

The financing deal for Vizsla Silver Corp. (VZLA) is expected to close on or about September 19, 2024, subject to regulatory approvals.

What will Vizsla Silver (VZLA) use the proceeds from this financing for?

Vizsla Silver Corp. (VZLA) intends to use the net proceeds to advance the exploration, drilling, and development of its Panuco Project, as well as for working capital and general corporate purposes.