Vizsla Silver Completes Over-Allotment Option for Additional US$15 Million in Financing

• Vizsla Silver Corp. has successfully completed the exercise of its over-allotment option, raising an additional US$15 million in gross proceeds to support the development of its flagship Panuco silver-gold project in Mexico.
• The completion of this financing component demonstrates continued investor confidence in the company's development strategy and provides enhanced financial flexibility for advancing its operations.
• The company recently completed a Preliminary Economic Study for Panuco in July 2024 which projects 15.2 million ounces of silver equivalent annual production over an initial 10.6-year mine life, with an after-tax value of US$1.1 billion, 86% returns on investment and a 9-month payback period at US$26 per ounce silver and US$1,975 per ounce gold.
• Vizsla Silver aims to become the world's leading silver company by implementing a dual track development approach at Panuco, advancing mine development while continuing large-scale exploration through cost-effective methods.

Over-Allotment Option Details

The over-allotment option completion represents the final component of Vizsla Silver's broader financing strategy. The investment banks exercised their over-allotment option in full, purchasing an additional 5,000,100 common shares at the offering price of US$3.00 per share. This generated additional gross proceeds of US$15,000,300 for the company.

The over-allotment option was granted as part of the company's larger bought deal public offering of 33,334,000 common shares, also priced at US$3.00 per share. Combined with the initial offering, the total share issuance reached 38,334,100 common shares, representing a comprehensive capital raise for the company's development activities.

The pricing of both the initial offering and over-allotment option at US$3.00 per share provides insight into market valuation of the company's assets and development prospects. The consistent pricing across both tranches suggests stable investor demand at this valuation level.

Use of Proceeds & Strategic Allocation

The company has outlined specific uses for the net proceeds from both the initial offering and over-allotment option exercise. The primary allocation areas include advancing exploration and development of the Panuco Project, exploration of the Santa Fe Project, potential future acquisitions, and working capital and general corporate purposes.

The Panuco Project represents the company's flagship asset and primary value driver. The allocation of proceeds to advance exploration and development activities aligns with the company's stated objective of becoming a leading silver producer. The Preliminary Economic Study completed in July 2024 provides the technical foundation for these development activities.

The Santa Fe Project represents the company's secondary exploration asset, indicating a portfolio approach to asset development. The allocation of proceeds to Santa Fe exploration suggests the company views this property as having significant potential to contribute to future production or value creation.

The inclusion of potential future acquisitions in the use of proceeds indicates the company's strategic focus on growth through both organic development and external opportunities. This approach could accelerate the company's path to production or expand its resource base.

Financial Position & Capital Structure Impact

The completion of the over-allotment option, combined with the initial offering, provides Vizsla Silver with enhanced financial flexibility to execute its development strategy. The total gross proceeds of approximately US$115 million represent a significant capital injection that should extend the company's operational runway.

The share issuance of 38,334,100 common shares will impact the company's capital structure and earnings per share calculations. Investors should consider the dilutive effect of this equity financing against the operational advancement it enables.

The US$3.00 per share pricing provides a benchmark for recent market valuation of the company's assets. This pricing occurred during the due diligence and marketing process, suggesting it reflects institutional investor assessment of fair value at the time of the offering.

Development Timeline & Operational Implications

The successful completion of the financing provides the company with resources to advance its development timeline. The Panuco Project's Preliminary Economic Study indicates a 9-month payback period, suggesting relatively rapid cash flow generation once production commences.

The dual track development approach outlined by the company involves advancing mine development while continuing district scale exploration. This strategy requires sustained capital allocation across multiple activities, making the enhanced financial position particularly relevant for execution.

The company's exploration activities at both Panuco and Santa Fe projects will benefit from the additional funding. Continued exploration could expand the resource base or identify additional mineralization, potentially improving project economics or extending mine life.

Market Context & Industry Positioning

The successful completion of the over-allotment option occurs within the context of broader silver market dynamics. The company's focus on silver production positions it to benefit from potential price appreciation in the precious metals sector.

The company's Mexican operations provide access to established mining infrastructure and skilled labor markets. Mexico's position as a major silver producer provides operational advantages and regulatory familiarity for mining companies.

The company's stated objective to become "the world's leading silver company" indicates ambitious growth targets that will require sustained execution of development and acquisition strategies. The enhanced financial position provides resources to pursue these objectives.

For Investors

The successful completion of Vizsla Silver's over-allotment option demonstrates continued institutional investor confidence in the company's development strategy and asset quality. The additional US$15 million in gross proceeds, combined with the initial offering, provides enhanced financial flexibility to advance the flagship Panuco Project and pursue strategic growth opportunities.

Investors evaluating Vizsla Silver should consider the company's strong technical foundation, as evidenced by the Preliminary Economic Study results, combined with the enhanced financial position resulting from the completed financing. The company's dual track development approach and strategic focus on becoming a leading silver producer provide a framework for assessing future performance.

The successful execution of this financing in current market conditions indicates institutional investor appetite for quality silver development assets. The broad underwriting syndicate and cross-border distribution suggest confidence in the company's prospects and management team's ability to execute the development strategy.

For investors considering Vizsla Silver, the combination of technical merit, financial resources, and strategic positioning provides a foundation for potential value creation as the company advances toward production. The enhanced capital structure resulting from this financing should support operational execution and strategic flexibility in pursuing the company's growth objectives.