Vizsla Silver Secures $250M Convertible Notes Financing Through 2031

Vizsla Silver Corp. (VZLA, VZLA.TO) revealed its strategy to raise capital through the issuance of convertible senior unsecured notes totaling US$250 million, with maturity set for January 15, 2031. The financing structure includes a 13-day option period for lead investors to acquire an additional US$50 million in notes, providing flexibility in the overall capital raise.

Deployment of Capital Proceeds

The junior mining company plans to allocate the proceeds strategically across multiple priorities. Primary focus will be directed toward advancing the Panuco Project, which represents a core asset in the company’s portfolio. Beyond project development, Vizsla Silver has identified potential acquisition targets that could complement its existing operations, while also maintaining a reserve for routine corporate functions and administrative needs.

Hedging Strategy and Call Options

A portion of the capital raised will be designated for capped call transactions, a risk management instrument designed to limit upside exposure. The company anticipates executing these derivative contracts concurrently with the note issuance. Should the initial investor group exercise their full option to purchase the additional US$50 million tranche, Vizsla Silver intends to arrange supplementary capped call agreements, with any surplus proceeds allocated toward general business requirements.

The convertible note structure allows the company flexibility while providing investors with downside protection through the conversion feature, blending traditional debt characteristics with equity upside potential through the conversion mechanism tied to company performance.