Vizsla Silver closes US$100 million bought deal financing
Vizsla Silver Corp. [VZLA-TSXV, NYSE, 0G3 Frankfurt] said it has raised US$100 million from a bought deal public offering. Net proceeds are expected to be used to advance exploration and development of the Panuco project in Mexico, for exploration of the nearby Santa Fe project and for potential future acquisitions.
The bought deal offering consisted of 33.3 million common shares priced at US$3.0 per share. The company has granted the underwriters an overallotment option to purchase up to an additional 5.0 million common shares. That option can be exercised at the offering price for 30 days after and including the closing date.
On Friday, Vizsla were down 3.21% or $0.13 to $3.92. The shares trade in a 52-week range of $5.00 and $2.28.
The newly-consolidated Panuco gold-silver project is an emerging high-grade discovery located in southern Sinaloa, near the city of Mazatlan. The company said it remains focused on delivering a feasibility study for Panuco in the second half of this year, with a goal of achieving first silver in the second half of 2027.
A preliminary economic assessment for Panuco envisages a 3,300 tonnes per day production rate for the first three years, expanding to 4,000 tonnes per day in year four, producing silver-gold dore with an initial mine life of 10.6 years.
The PEA forsees life of mine average payable production of 15.2 million ounces of AgEq annually (9.2 million ounces of silver and 78,000 ounces of gold.
On January 6, 2025, the company announced an updated mineral resource estimate for Panuco, which includes an estimated in situ combined measured and indicated resource of 222.4 million ounces of AgEq and an in-situ inferred resource of 138.7 million ounces of AgEq
In a May 15, 2025 press release, Vizsla said it had struck a deal to acquire the Santa Fe project, including both production and exploration concessions consisting of 12,229 hectares located to the south of the Panuco project for a combination of cash and shares.
The Santa Fe project benefits from permitted on-site production infrastructure including an operating 350 tonne per day mill situated along the Panuco – San Dimas corridor. From 2020 to 2024, the Santa Fe mine processed 370,366 tonnes of ore at average head grades of 203 g/t silver and 2.17 g/t gold.
“With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces AgEq of initial annual production envisioned for Panuco Project #1,” said Vizsla Silver President and CEO Michael Konner. “This is supported by permitted operating infrastructure including the 350 tonne per day flotation plant and open-ended mineralized vein structures located right at surface,” he said. “Furthermore, the mine production and historic drilling completed to date covers less than 12% of the overall Santa Fe project.”