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

Vizsla Silver Completes Major Financing

Introduction
Vizsla Silver Corp., a Canadian mineral exploration and development company, has successfully closed its offering of US$300 million in convertible senior unsecured notes due in 2031. This significant financial maneuver is a crucial step towards advancing their flagship Panuco silver-gold project situated in Sinaloa, Mexico.

Details of the Offering
On November 24, 2025, Vizsla Silver announced that they had completed the offering, which included a full exercise of the underwriters' option to purchase an additional US$50 million in notes. The notes carry a competitive 5.00% annual coupon, significantly lower than many traditional financing rates, making this a favorable arrangement for the company as it seeks to fund its ambitious exploration and development plans at Panuco.

Michael Konnert, President and CEO of Vizsla Silver stated, "We are grateful for the robust backing from an extensive global investor base. This offering not only strengthens our financial position but also welcomes a distinguished group of institutional investors to our community."

Strategic Utilization of Funds
The net proceeds from the offering are expected to total approximately US$286 million after deducting costs associated with the issuance. These funds will be allocated towards the exploration and development of the Panuco project, potentially setting the stage for future growth and acquisitions, underscoring the company's proactive approach to maximizing shareholder value.

Financial Flexibility and Long-Term Vision
A notable feature of the Notes is their flexible structure, allowing Vizsla Silver to exercise discretion over project cash flows without the typical constraints found in conventional financing terms. This means the company can utilize project cash flows for diverse purposes such as share buybacks or dividends, further enhancing its operational agility.

Additionally, through the arrangement of capped call transactions linked to the Notes, Vizsla Silver is well-positioned to mitigate potential dilution effects from future conversions, thereby maintaining shareholder equity balance. The current interest rate of 5.00% on the Notes is nearly half that of many typical project financing options, further emphasizing the financial prudence of this offering.

Capped Call Transactions
As part of the offering, Vizsla Silver has entered into cash-settled capped call transactions, designed to counteract any economic dilution that may arise upon conversion of the Notes. The capped call transactions, which have a strike price equivalent to the initial conversion price of US$5.84 per share, allow for a cap on the maximum payout, thus securing the firm's economic interests in the face of market fluctuations.

Conclusion
With this strategic capital raise, Vizsla Silver aims to expedite the development of its Panuco project while maintaining a vigorous exploration program. The positive reception from institutional investors reflects confidence in the company's direction and business model. As Vizsla Silver continues its journey, stakeholders can expect an enhanced focus on growth opportunities backed by solid financial underpinnings.

For further details regarding the convertible notes and the company's strategic plans, you may visit Vizsla Silver's official investors page.