Never let a good opportunity go to waste is the exact mantra Vizsla Resources Corp (TSXV: VZLA) is currently running with. The company announced this morning that it will be conducting a $25 million bought deal with a syndicate of underwriters lead by Canaccord Genuity. The news follows yesterdays mid-morning announcement of drill results for its Panuco Project south in southern Sinaloa, Mexico.
Under the bought deal financing, the company will sell 13,369,000 units at a price of $1.87 per unit. Each unit consists one common share and one common share purchase warrant, with the warrant having an exercise price of $2.40 for a period of 24 months.
An over allotment of up to 2,674,000 units has been offered as well, which the syndicate can elect to capitalize on up to 48 hours prior to the close of the offering. If exercised, this would bring in an additional $5.0 million in cash, raising the total gross proceeds to $30.0 million.
It should also be noted that Eric Sprott will be taking $10.0 million of the raise for himself given the recent results published by the firm. Following the cose of the transaction, he’ll own 11.3% of Vizsla.
Proceeds from the financing will be used for working capital and general corporate purposes, in addition to advancing the Panuco project. Yesterday, that project revealed assays consisting of 8,078 grams per tonne silver equivalent over 6.0 metres from a single drill hole. The results once published resulting in the company closing $1.08, or 96% higher on the day.
The offering is anticipated to close by July 30, 2020.
Vizsla Resources last traded at $2.20 per share.
Information for this briefing was found via Sedar, and Vizsla Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
