Vizsla Silver arranges $60-million bought deal financing
Vizsla Silver Corp. [VZLA-TSXV; VIZSF-OTCQB; 0G30-FSE] has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 24 million units of the company at a price of $2.50 per unit for gross proceeds of $60-million.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant is good to buy one common share for 18 months from closing of the offering at a price of $3.25.
The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing date (as defined herein), to purchase up to an additional 15% of the number of units sold under the offering to cover overallotments, if any, and for market stabilization purposes. The offering is expected to close on or about June 3, 2021, and is subject to the company receiving all necessary regulatory approvals.
The net proceeds of the offering will be used to advance the exploration and development of Panuco, to make option payments and pursue strategic opportunities, as well as for working capital and general corporate purposes.
The units will be offered by way of a prospectus supplement in each of the provinces of Canada (other than the province of Quebec) and may also be offered by way of private placement in the United States and such other jurisdictions as agreed between the parties.
Vizsla has an option to acquire 100% of the newly consolidated 9,386.5-hectare Panuco district in southern Sinaloa, Mexico, near the city of Mazatlan. The option allows for the acquisition of over 75 km of total vein extent, a 500-ton-per-day mill, 35 km of underground mines, tailings facilities, roads, power and permits.
The district contains intermediate to low sulphidation 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.
Recent drilling at Panuco intersected 513 g/t silver equivalent (390.7 g/t silver and 1.56 g/t gold) over 7.76 metres of true width, including 1,423 g/t silver equivalent (1,156.8 g/t silver and 3.60 g/t gold) over 1.22 metres true width from 208.65 metres.
In May 26 trading, Vizsla shares fell $0.28 on a volume of 1,767,500.