#Canada #Vancouver #Convertible Notes #Vizsla Silver #Panuco Project

Vizsla Silver Announces Proposed Offering of Convertible Senior Notes

Vizsla Silver Corp., a company based in Vancouver, BC, has made headlines with its announcement of a proposed offering amounting to $250 million of convertible senior unsecured notes due in 2031. This strategic move, designated under the NYSE and TSX ticker VZLA, is expected to enhance the company's capital, aimed primarily at bolstering its exploration and development initiatives, particularly focusing on the flagship Panuco Project.

Purpose of the Offering

The funds raised from this offering will be allocated to several critical areas:
1. Exploration and Development: The primary objective is to further the exploration and development of the Panuco Project located in Sinaloa, Mexico. This project is pivotal for Vizsla Silver as it aims to establish the company as a leader in the silver mining industry.
2. Potential Acquisitions: Besides supporting current projects, part of the raised capital may be directed towards future acquisitions, providing Vizsla Silver with opportunities for strategic expansion.
3. General Corporate Purposes: Remaining funds will assist in overarching corporate goals, ensuring operational stability and growth.

Moreover, a portion of the proceeds will be applied towards purchasing cash-settled capped call options designed to mitigate potential economic dilution that could arise from the notes' conversion process.

Offering Details

The offering includes several flexible features designed for both the investors and the company:

• - Timeframe: Under the initial provisions, the investors will have a 13-day option to purchase an additional amount of up to $50 million after the notes are first issued.
• - Interest and Maturity: The convertible notes will accrue interest semi-annually, commencing on July 15, 2026, and are slated to mature on January 15, 2031, unless converted, redeemed, or repurchased earlier.
• - Conversion Options: Investors will have the option to convert their notes into shares of the company, cash, or both, which provides them with varied exit strategies depending on market conditions.

Capped Call Transactions

In conjunction with the notes' offering, Vizsla Silver plans to enter into cash-settled capped call transactions. These transactions are designed to counteract economic dilution that may occur upon conversion of the notes. The capped call counterparties will take various hedging positions for managing risks associated with the notes, potentially influencing the market price of the company's shares during specific periods leading up to the notes’ maturity.

Conditions and Regulatory Compliance

The offering's completion is subject to various conditions, including necessary approvals from regulatory authorities such as the Toronto Stock Exchange and NYSE American. Additionally, the notes and shares that may be issued upon conversion will not be registered under the U.S. Securities Act of 1933, highlighting the need for careful compliance with securities laws. Therefore, the sale will predominantly target qualified institutional buyers, with restrictions in place for broader public access.

Company Profile

Founded with the ambitious aim to lead in the silver sector, Vizsla Silver is committed to a dual-track development approach at Panuco. This includes advancing mine development alongside ongoing exploration to maximize potential resources while maintaining cost-effectiveness. The ongoing efforts highlight the company's strategic intent while navigating the complexities of mineral exploration and development.

In summary, Vizsla Silver’s proposed offering of convertible senior notes represents a significant step in its operational and financial strategy. The anticipated funds will support critical areas essential for ongoing projects and potential future growth while ensuring compliance with necessary regulations and market dynamics. The forward-looking statements underscore both the ambition and readiness of Vizsla Silver to adapt to the rapidly changing landscape of the mining industry.