Vizsla Silver to raise $30M for Panuco exploration, shares down

Vizsla Silver (TSXV: VZLA; NYSE: VZLA) is raising $30 million for exploration at its Panuco silver-gold project, located in southern Sinaloa, Mexico.

The company has budgeted over 65,000 metres of drilling at Panuco designed to upgrade and expand resources, and test other high-priority targets.

To date, the company has completed over 350,000 metres of drilling at Panuco, leading to the discovery of several new high-grade veins.

PI Financial Corp. will act as the sole bookrunner and lead underwriter for the bought-deal financing consisting of 20 million shares priced at $1.50 each. The underwriters will also be granted a 30-day, 15% overallotment option.

Vizsla Silver’s shares fell by 12.5% to $1.47 apiece as of 2:15 p.m. in Toronto, for a market capitalization of $307.6 million. The stock has traded between $1.26 and $2.25 over the past 52 weeks.

Panuco is located within a 72-sq.-km. district hosting past producing mines that has seen limited exploration since the land package was consolidated. This year, Vizsla is focused on de-risking the resource base located in the western portion of the district ahead of a development decision. 

Earlier this year, Vizsla released an updated resource estimate totalling 155.8 million indicated oz. of silver equivalent in 9.5 million tonnes grading 511 grams silver equivalent per tonne (289 grams silver, 2.41 grams gold, 0.27% lead and 0.84% zinc).

Inferred resources are 169.6 million oz. silver equivalent in 12.2 million tonnes grading 433 grams silver equivalent (239 grams silver, 1.93 grams gold, 0.29% lead and 1.03% zinc).