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Vizsla Silver announces $22 million bought deal, shares down

Vizsla Silver (TSXV: VZLA) (NYSE: VZLA) announced Wednesday an agreement with PI Financial Corp. to act as the sole bookrunner and lead underwriter for a bought deal financing consisting of 20 million shares of the company priced at C$1.50 each for gross proceeds of C$30 million ($22.2m).

The underwriters led by PI Financial will also be granted a 15% overallotment option, exercisable in whole or in part for 30 days.

Vizsla Silver’s shares fell by 12.5% to C$1.47 apiece as of 2:15 p.m. ET, for a market capitalization of C$307.6 million ($227.9m). The stock traded between C$1.26 and C$2.25 over the past 52 weeks.

Net proceeds of the financing, says Vizsla, will go towards the exploration, drilling and development of its flagship Panuco silver-gold project, located in southern Sinaloa, Mexico. The project is located within a 72-sq.-km. district hosting past producing mines that has seen limited exploration on a consolidated basis.

To date, the company has completed over 350,000 metres of drilling at Panuco, leading to the discovery of several new high-grade veins.

Earlier this year, it released an updated mineral resource estimate that includes an in-situ indicated mineral resource of 155.8 million oz. of silver equivalent (AgEq) and an in-situ inferred resource of 169.6 million oz. AgEq.

The indicated mineral resource is estimated at 9.5 million tonnes grading 289 g/t silver, 2.41 g/t gold, 0.27% lead and 0.84% zinc (or 511 g/t AgEq), while the inferred resource is calculated at 12.2 million tonnes grading 239 g/t silver, 1.93 g/t gold, 0.29% lead and 1.03% zinc (433 g/t AgEq).

For 2024, Vizsla is focused on de-risking the resource base located in the western portion of the district ahead of a development decision. Additionally, it has budgeted over 65,000 metres of drilling designed to upgrade and expand the mineral resource, as well as test other high-priority targets across the district.

Source: MINING.COM – Read More