Mr. Michael Konnert reports
VIZSLA ANNOUNCES C$25 MILLION BOUGHT DEAL PRIVATE PLACEMENT
Vizsla Resources Corp. has entered into an agreement with Canaccord Genuity Corp. on behalf of an underwriting syndicate, pursuant to which the underwriters will purchase, on a bought-deal private placement basis, 13,369,000 units of the company at a price of $1.87 per unit for gross proceeds to the company of $25,000,030. Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of $2.40 for a period of 24 months following the closing date (as defined below).
The company has agreed to grant the underwriters an option to purchase up to an additional 2,674,000 units at the offering price, exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the offering. If this option is exercised in full, an additional $5,000,380 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $30,000,410.
The company also announces that Eric Sprott, through 2176423 Ontario Ltd., has agreed to purchase $10-million of the offering. On completion of the offering, Eric Sprott will own 11.3 per cent of the issued and outstanding shares of the company on a partially diluted basis (excludes potential shares issued from the option).
The net proceeds from the offering will be used to advance the Panuco project, as well as for working capital and general corporate purposes.
The units will be offered for sale by way of private placement pursuant to applicable exemptions from the prospectus requirements in all of the provinces of Canada. The underwriters will also be entitled to offer the units for sale in the United States pursuant to available exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in those other jurisdictions outside of Canada and the United States provided it is understood that no prospectus filing or comparable obligation arises in such other jurisdiction.
The offering is scheduled to close on or about July 30, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
About the Panuco project
Vizsla has an option to acquire 100 per cent of the newly consolidated, 9,386.5-hectare Panuco district in southern Sinaloa, Mexico, near the city of Mazatlan. The option allows for the acquisition of: over 75 kilometres of total vein extent; a 500-tonne-per-day mill; 35 kilometres of underground mines; tailings facilities; roads; power; and permits.
We seek Safe Harbor.
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