Vizsla Silver Raises C$65M with Oversubscribed Offering to Accelerate Panuco Project Exploration

• Vizsla Silver has successfully closed a C$65 million bought deal financing, issuing 25,000,000 common shares at a price of C$2.60 per share.
• Following strong demand, the underwriters exercised their over-allotment option in full, purchasing an additional 3,750,000 shares at the offering price. This resulted in extra gross proceeds of C$9.75 million, further bolstering Vizsla Silver's financial position.
• The combined offerings have generated total gross proceeds of C$74.75 million, providing Vizsla Silver with significant capital to accelerate the advancement of its Panuco silver-gold project in Mexico.
• The oversubscribed nature of the offering and full exercise of the over-allotment option signal strong investor confidence in both Vizsla Silver's management team and the geological potential of the Panuco project.
• Vizsla Silver has outlined an ambitious drilling program for 2024, planning to complete over 45,000 meters of resource and discovery-based drilling at Panuco. This extensive exploration campaign aims to upgrade and expand the existing mineral resource while also testing new high-priority targets across the district.

Vizsla Silver Corp. (TSXV:VZLA) has successfully closed a significant financing round, raising a total of C$74.75 million to advance its flagship Panuco silver-gold project in Sinaloa, Mexico. This substantial capital injection positions the Canadian mineral exploration and development company to aggressively pursue its ambitious exploration and development plans for 2024 and beyond.

Vizsla Silver is a Vancouver-based mineral exploration and development company focused on advancing its 100%-owned Panuco silver-gold project in Sinaloa, Mexico. The company has already completed over 380,000 meters of drilling at Panuco, leading to the discovery of several new high-grade veins. With a strong track record of exploration success and a clear vision for growth, Vizsla Silver has quickly emerged as a notable player in the precious metals exploration sector.

Oversubscribed Offering Demonstrates Strong Investor Confidence

On September 19, 2024, Vizsla Silver announced the successful closing of its previously announced bought deal public offering. The company issued 25,000,000 common shares at a price of C$2.60 per share, raising gross proceeds of C$65,000,000. The offering was led by Canaccord Genuity as the sole bookrunner and lead underwriter, with participation from a syndicate of prominent financial institutions including CIBC Capital Markets, Ventum Financial Corp., Raymond James Ltd., Stifel Nicolaus Canada Inc., National Bank Financial Inc., and BMO Capital Markets.

Over-Allotment Option Exercised

In a clear indication of strong investor demand, Vizsla Silver announced on September 25, 2024, that the underwriters had exercised their over-allotment option in full. This resulted in the issuance of an additional 3,750,000 common shares at the offering price of C$2.60 per share, generating additional gross proceeds of C$9,750,000.

Total Proceeds and Underwriter CompensationWith the full exercise of the over-allotment option, the total gross proceeds from the offering reached an impressive C$74,750,000. In consideration for their services, the underwriters received a cash commission totaling C$3,715,500, reflecting the substantial size and success of the financing.

Use of Proceeds: Accelerating the Panuco Project

Exploration & Drilling Focus

The net proceeds from this significant financing are earmarked primarily for advancing the exploration, drilling, and development of Vizsla Silver's Panuco Project. The company has outlined an ambitious program for 2024, which includes over 45,000 meters of resource and discovery-based drilling. This extensive drilling campaign is designed to achieve two primary objectives:

• Upgrade and expand the existing mineral resource at Panuco
• Test high-priority targets across the district to potentially uncover new high-grade veins

In addition to the project-specific allocation, a portion of the proceeds will be directed towards working capital and general corporate purposes. This financial flexibility will allow Vizsla Silver to maintain a strong balance sheet and respond to opportunities as they arise in the dynamic precious metals market.

Market Reaction & Regulatory Approval

The successful completion of this financing has been well-received by the market, reflecting confidence in both Vizsla Silver's management team and the potential of the Panuco project. The offering remains subject to the final approval of the TSX Venture Exchange, which is expected to be a formality given the company's compliance with regulatory requirements.

Panuco Project: A High-Grade Silver-Gold Opportunity

Exploration Success to Date

The Panuco silver-gold project is strategically located in Sinaloa, Mexico, a region known for its rich mining history and favorable geology. The project benefits from excellent infrastructure, including road access, power supply, and proximity to skilled labor markets, which are crucial factors for efficient exploration and potential future development.

Vizsla Silver's exploration efforts at Panuco have already yielded impressive results. With over 380,000 meters of drilling completed, the company has identified several new high-grade veins, underscoring the project's potential to host a significant precious metals resource. The continued discovery of high-grade mineralization has been a key driver of investor interest and confidence in the company's exploration strategy.

2024 Exploration Program

The newly secured funding will enable Vizsla Silver to execute its comprehensive 2024 exploration program. The planned 45,000+ meters of drilling will focus on:

• Resource Definition: Infill and expansion drilling to upgrade and grow the current mineral resource estimate.
• Discovery Drilling: Testing new targets across the extensive Panuco land package to potentially uncover additional high-grade veins and expand the project's overall resource potential.
• Advanced Studies: Conducting metallurgical, geotechnical, and environmental studies to support future development planning.

Management Confidence

Michael Konnert, President and Chief Executive Officer of Vizsla Silver, commented on the successful financing:

"We are extremely pleased with the strong support received from both existing and new investors in this oversubscribed offering. The significant capital raised will allow us to aggressively advance our flagship Panuco project, which we believe has the potential to become a world-class silver-gold mining district. Our 2024 exploration program is designed to both expand our known resources and test new high-priority targets across the property. We look forward to delivering a steady stream of news flow and value creation for our shareholders in the coming months."

Sector Momentum & Considerations

The successful completion of this large financing by Vizsla Silver comes at a time of renewed interest in the precious metals sector. With global economic uncertainties and inflationary pressures driving investor attention towards safe-haven assets, well-funded exploration companies with high-grade projects in stable jurisdictions are attracting significant capital.

Potential Catalysts for Vizsla Silver

Investors should watch for several potential catalysts that could drive Vizsla Silver's valuation in the near to medium term:

• Exploration Results: Regular updates from the 2024 drilling program, particularly any high-grade intercepts or new vein discoveries.
• Resource Updates: Potential expansion of the mineral resource estimate as new drilling data is incorporated.
• Development Milestones: Advancements in metallurgical studies, preliminary economic assessments, or other technical reports that demonstrate the project's economic viability.
• Strategic Partnerships: Potential joint ventures or strategic investments from major mining companies, which could validate the project's potential and provide additional funding.

Risk Factors to Consider

While the outlook for Vizsla Silver appears promising, investors should be aware of potential risks, including:

• Commodity Price Volatility: Fluctuations in silver and gold prices can impact the economic viability of exploration projects.
• Exploration Risk: Despite past success, there is no guarantee that future exploration will yield economically viable deposits.
• Regulatory and Political Risk: Changes in Mexican mining regulations or political stability could affect project development.
• Financing Risk: Future capital needs may result in dilution if additional equity financing is required.

Investors may want to compare Vizsla Silver's valuation, resource base, and exploration potential with other silver-focused exploration companies operating in Mexico or similar jurisdictions. Key metrics to consider include enterprise value per ounce of silver equivalent resource, exploration success rate (new discoveries vs. drilling expenditure, management track record, and technical expertise, property size and exploration upside.

Conclusion: A Well-Funded Explorer with Significant Potential

Vizsla Silver's successful C$74.75 million financing positions the company as one of the best-funded silver explorers in the market. With a clear focus on advancing the high-grade Panuco project, a strong balance sheet, and an aggressive exploration program planned for 2024, Vizsla Silver offers investors exposure to potentially significant value creation in the precious metals space.

The oversubscribed nature of the offering and the full exercise of the over-allotment option demonstrate strong institutional and retail investor confidence in both the company's management and the Panuco project's potential. As Vizsla Silver deploys this capital to expand its resource base and test new targets, investors can anticipate a steady stream of news flow and potential catalysts in the coming months.

For investors seeking exposure to a well-funded, high-grade silver-gold exploration story in a favorable mining jurisdiction, Vizsla Silver presents a compelling opportunity. However, as with any early-stage resource company, thorough due diligence and an understanding of the inherent risks associated with mineral exploration are essential.

As Vizsla Silver advances the Panuco project towards becoming a potential world-class silver-gold mining district, market participants will be watching closely for exploration success, resource growth, and development milestones that could drive significant shareholder value in the years to come.