Vizsla Silver (TSX VZLA) raises 100 million dollars in capital to advance exploration, drilling, and development of the Panuco project in Mexico.
A banking consortium has agreed to take on approximately 33.3 million common shares at 3 CAD per share as part of a bought deal, it was announced yesterday, Monday. The consortium group can also utilize a 15% over-allotment option, which would increase the gross proceeds of the financing to around 115 million CAD if fully exercised. The transaction is planned to close on Thursday.
Vizsla is Already Conducting an Extensive Drilling Program
Since the end of last year, the company has been carrying out a 10,000-meter drilling program to investigate multiple veins across five targets in the Panuco district. Panuco is located in the southern part of the Mexican state of Sinaloa, near the city of Mazatlan. The district covers 72 square kilometers and has a total of 86 kilometers of veins, 35 kilometers of underground mines, roads, electricity, and permits.
Vizsla plans to submit a feasibility study for its Panuco project in the second half of 2025 and start production by the end of 2027. The Panuco project has estimated resources of 12.96 million tonnes in the measured and indicated category with a grade of 307 grams of silver per tonne, 2.49 grams of gold, 0.27% lead, and 0.85% zinc, Vizsla said in January. Expressed in silver equivalent ounces, the measured and indicated resources increased by 43% compared to an estimate from January 2024.
Last July, the company presented a PEA (preliminary economic assessment) for Panuco, which attributed a net present value (at a 5% discount rate) of 1.1 billion CAD after tax to the project. According to the study, the internal rate of return was 86% and the payback period was only nine months. At that time, the company estimated the cost of building the mine at 224 million dollars.
