Vizsla Resources (TSXV: VZLA) has closed a bought deal private placement for around 16 million units of the company at a price of C$1.87 per unit for gross proceeds of C$30 million and includes the exercise in full of the underwriters\u2019 over-allotment option.<\/p>\n
Each unit consists of one common share in the company and one common share purchase warrant, with each warrant entitling the holder to purchase one common share for C$2.40 per share.<\/p>\n
Under the deal, 2176423 Ontario, a company controlled by Eric Sprott, acquired around 5 million units for a total consideration of C$10 million. Following the acquisition, Sprott owns or controls 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 company reports.<\/p>\n Concurrent with the bought deal, the company also completed a non-brokered private placement for 240,000 units for gross proceeds of C$448,000<\/p>\n<\/blockquote>\n<\/figure>\n \u201cWe are pleased to see Mr. Sprott take such a meaningful stake in the Company to welcome investment from other key strategic and institutional investors,\u201d Michael Konnert, the company\u2019s director and CEO, said in a press release. <\/p>\n \u201cWe have approximately C$34,000,000 in cash and are fully funded for continuous exploration drilling for the next two years.<\/p>\n Concurrent with the bought deal, the company also completed a non-brokered private placement for 240,000 units for gross proceeds of C$448,000.<\/p>\n The company says that total proceeds from the two offerings will be used to advance its Panuco project and for working capital and general corporate purposes. Panuco is a district-scale silver-gold project totalling 9,386.5 hectares, located approximately 33 km northeast of Concordia in Sinaloa, Mexico.<\/p>\n According to Vizsla, the project is about 80 km south from First Majestic Silver\u2019s (TSX: FR) San Dimas silver-gold mine, which produced over 25 million oz. of silver equivalent in 2019.<\/p>\n In a July 8 press release, the company reported the latest drilling results from the Napoleon vein at Panuco. The highlight included drill hole NP-20-7, which intersected 6 metres grading 1,808.2 grams silver per tonne, 66.8 grams gold (8,078 grams silver equivalent), and 2.99% lead, and 3.3% zinc starting from 69 metres downhole.<\/p>\n The also included a high-grade core of 3.7 metres grading 2,889.2 grams silver, 107.9 grams gold (12,992 grams silver equivalent), 4.8% lead, and 4.56% zinc from 69.5 metres downhole.<\/p>\n To date, 11 holes have been drilled at the Napoleon vein over 150 metres of strike, which remains open to the north, south, and at depth, the company reports.<\/p>\n \u201cThe 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,\u201d Konnert said.<\/p>\n Midday Friday, Vizsla\u2019s stock was up 4% on the TSXV. The company has a C$164 million market capitalization.<\/p>\n\n