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Vizsla Resources Corp
Symbol VZLA
Shares Issued 72,047,474
Close 2020-07-29 C$ 2.23
Recent Sedar Documents

Vizsla Resources closes $30-million bought deal

2020-07-30 13:59 ET - News Release

Mr. Michael Konnert reports

VIZSLA CLOSES FULLY SUBSCRIBED C$30 MILLION PRIVATE PLACEMENT INCLUDING INVESTMENT FROM ERIC SPROTT

Vizsla Resources Corp. has closed the bought deal private placement announced on July 9, 2020.

Pursuant to the Brokered Offering, the Company issued a total of 16,043,000 units (the "Units") of the Company at a price of C$1.87 per Unit for gross proceeds to the Company of $30,000,410, which includes the exercise in full of the Underwriters' over-allotment option. Each Unit consists of one common share in the capital of the Company and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common at a price of C$2.40 for a period of 24 months following the closing date.

Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 5,348,000 Units under the Brokered Offering for total consideration of C$10,000,760.

"We are pleased to see Mr. Sprott take such a meaningful stake in the Company to welcome investment from other key strategic and institutional investors. We have approximately $34,000,000 in cash and are fully funded for continuous exploration drilling for the next two years. The Company now has four drill rigs turning on the underexplored Panuco silver district. Vizsla will now look to drill over 31,000 metres in 2020," stated Michael Konnert, chief executive officer of the company.

The Brokered Offering was completed through a syndicate of underwriters led by Canaccord Genuity Corp. and which included PI Financial Corp., Haywood Securities Inc. and Sprott Capital Partners LP (together, the "Underwriters"). In consideration for the services provided by the Underwriters in connection with the Brokered Offering, on closing the Company paid to the Underwriters a cash commission equal to 6% of the gross proceeds raised under the Brokered Offering and issued broker warrants of the Company to the Underwriters, exercisable at any time on or before July 30, 2022, to acquire that number of common shares in the capital of the Company which is equal to 6% of the number of Units sold under the Brokered Offering at an exercise price of C$1.87.

Concurrently with the Brokered Offering, the Company also completed a non-brokered private placement, pursuant to which it issued a total of 240,000 Units for gross proceeds of $448,000. The Units issued pursuant to the Non-Brokered Offering have the same terms and conditions as the Units issued pursuant to the Brokered Offering. The Company paid a cash finder's fee equal to 3% of the gross proceeds of the Non-Brokered Offering.

The securities issued pursuant to the Offering have a hold period of four months and one day from closing, expiring on December 1, 2020.

The Company intends to use the net proceeds of the Offering to advance the Panuco project, as well as for working capital and general corporate purposes.

Prior to the Offering, Mr. Sprott did not own or control any shares of the Company. As a result of the Brokered Offering, Mr. Sprott beneficially owns or controls 5,348,000 common shares and 5,348,000 common share purchase warrants representing 6.06% of the issued and outstanding common shares of the Company on a non-diluted basis and 11.42% on a partially diluted basis. The securities were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott may acquire additional securities the Company including on the open market or through private acquisitions or he may sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors that Mr. Sprott considers relevant from time to time. A copy of 2176423 Ontario Ltd.'s related early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).

About the Panuco project

Vizsla has an option to acquire 100% 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 ton per day mill, 35 kilometres of underground mines, tailings facilities, roads, power and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

We seek Safe Harbor.

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