Vizsla Silver Announces Closing of $34.5 Million Bought Deal Financing /
VIZSLA SILVER ANNOUNCES CLOSING OF
$34.5 MILLION BOUGHT DEAL FINANCING
/
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES/
NYSE: VZLA TSX-V: VZLA
VANCOUVER, BC
,
Feb. 29, 2024
/CNW/ -
Vizsla Silver Corp.
(TSXV: VZLA) (NYSE: VZLA)
(
Frankfurt
: 0G3) ("
Vizsla Silver
" or the "
Company
") is pleased to announce that it has completed its
previously announced bought deal prospectus offering of 23,000,000 common shares of the
Company (the "
Offered Shares")
at a price of
C$1.50
per Offered Share for aggregate gross
proceeds of
C$34,500,000
, which includes the exercise in full of the Underwriters' (as defined
below) over-allotment option for 3,000,000 Offered Shares (the "
Offering
").
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in
the United States
. The securities have not been and will not be registered under the
U.S. Securities Act or any state securities laws and may not be offered or sold within
the United
States
or to U.S. Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
This news 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 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 Mazatlán. 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.
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
The information contained herein contains "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of applicable Canadian securities legislation. "Forward-looking information"
includes, but is not limited to, statements with respect to the activities, events or developments that
the Company expects or anticipates will or may occur in the future, including, without limitation,
planned exploration activities. Generally, but not always, forward-looking information and statements
can be identified by the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative
connotation thereof or variations of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative
connotation thereof. Forward-looking statements in this news release include, among others,
statements relating to: the intended use of the net proceeds of the Offering, receipt of final TSX-V
approval; and future drilling and exploration activities at the Panuco Project.
Forward-looking statements and forward-looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of the Company, future growth
potential for the Company and its business, and future exploration plans 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; no escalation in the severity of public health crises; costs of
exploration and development; the estimated costs of development of exploration projects; the
Company's ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect the Company'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 the Company 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; the ability of the communities in which the Company operates to
manage and cope with the implications of public health crises; the economic and financial
implications of public health crises to the Company; 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; ongoing military conflicts around the world; general economic factors; and the factors
identified under the caption "Risk Factors" in the Company's management discussion and analysis
and other public disclosure documents.
Although the Company has attempted to identify important factors that could cause actual results to
differ materially from those contained in the forward-looking information or implied by forward-
looking information, there may be other factors that cause results not to be as anticipated, estimated
or intended. There can be no assurance that forward-looking information and statements will prove
to be accurate, as actual results and future events could differ materially from those anticipated,
estimated or intended. Accordingly, readers should not place undue reliance on forward-looking
statements or information. The Company undertakes no obligation to update or reissue forward-
looking information as a result of new information or events except as required by applicable
securities laws.
SOURCE
Vizsla Silver Corp.
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For further information:
For more information and to sign-up to the mailing list, please contact:
Michael Konnert, President and Chief Executive Officer, Tel: (604) 364-2215, Email:
[email protected], Website: www.vizslasilvercorp.ca
CO: Vizsla Silver Corp.
CNW 08:33e 29-FEB-24