Vizsla Silver Enhances Equity Program with New Funding Options

Q: How much capital can Vizsla Silver raise through this program?

Vizsla Silver aims to raise up to US$100 million through the ATM Program.

Vizsla Silver Enhances Equity Program with New Funding Options

Author: Olivia Taylor Updated: 09-13-2024 09:09 PM

Vizsla Silver Enhances Its At-The-Market Equity Program

NYSE: VZLA TSX-V: VZLA

Vizsla Silver Corp. is taking significant steps to improve its funding strategies by updating its at-the-market equity program (the "ATM Program"), allowing the company to offer and sell up to US$100 million in common shares to investors. This program is designed to facilitate the company's access to capital while providing flexibility in how they manage their financial needs moving forward.

Details of the ATM Program Update

This updated ATM Program, which will operate under an equity distribution agreement involving Canaccord Genuity and CIBC Capital Markets as lead agents, will allow Vizsla Silver to execute sales on various marketplaces, including the TSX Venture Exchange and NYSE American. This flexibility is crucial for the Company as it evaluates the best times and prices to distribute its common shares and leverage favorable market conditions.

Purpose of the Funds Raised

Funds raised through the ATM Program will primarily support ongoing work at the Panuco Project, particularly focused on advancing exploration and development efforts. The capital will also be allocated for general corporate purposes and working capital, ensuring that the Company remains nimble in its operations and maintains momentum in its exploration activities.

Insights from the CEO on Funding Strategy

Michael Konnert, President & CEO of Vizsla Silver, emphasized the strategic importance of having an ATM program available. He noted that it offers the Company optionality and enhances financial stability: "It is prudent for Vizsla Silver to have an ATM Program available for optionality. The Company never utilized the ATM that it had in place from April 2021 until March 2023." By establishing this program, Vizsla Silver positions itself for more effective responses to capital market dynamics.

Panuco Project: A Core Focus

The Panuco Project remains at the forefront of Vizsla Silver's strategic vision. The project is known for its rich mineral resources, and the company has undertaken extensive drilling efforts, totaling over 380,000 metres. With budgeted plans for an additional 45,000 metres for 2024, Vizsla aims to enhance its resource estimates and explore new high-priority targets in the area.

Regulatory Framework and Company Compliance

The passage and execution of new funding strategies like the ATM Program coincide with stringent regulatory compliance. The Company’s offering will align with the prospectus supplements filed with Canadian and U.S. securities regulators, ensuring transparency and adherence to legal obligations. Compliance is critical in maintaining the trust of investors and stakeholders alike.

Market Response and Future Potential

As the market evolves, Vizsla Silver's ATM Program represents a proactive approach to capital formation. Investors are encouraged to stay informed about potential offerings under this program, considering the significant impact of funding volatility on exploration and development timelines. The company’s focus on the silver and gold market positions it strategically as commodity demand fluctuates.

Frequently Asked Questions

What is the primary goal of the ATM Program?

The primary goal of the ATM Program is to raise funds to support ongoing exploration and development activities at the Panuco Project and general working capital needs.

How much capital can Vizsla Silver raise through this program?

Vizsla Silver aims to raise up to US$100 million through the ATM Program.

Who are the agents involved in the equity distribution agreement?

The agents involved include Canaccord Genuity, CIBC Capital Markets, National Bank Financial, and BMO Capital Markets.

What is the significance of the Panuco Project?

The Panuco Project is significant as it is Vizsla Silver’s flagship asset, known for its high-grade silver-gold veins and extensive exploration potential.

How will the proceeds be utilized?

Proceeds from the ATM Program will be used for exploration advancements, working capital, and general corporate purposes.

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