VIZSLA SILVER ANNOUNCES CLOSING OF US$300 MILLION CONVERTIBLE SENIOR NOTES OFFERING
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On November 24, 2025, Vizsla Silver announced the closing of an upsized offering of US$300 million in convertible senior notes due in 2031. This followed the initial announcement on November 19 of a proposed US$250 million offering. The notes are convertible into common shares at a price of US$5.84 per share. The proceeds are intended for the exploration and development of the Panuco project, potential future acquisitions, and general corporate purposes.
This is a materially positive, strategic financing that removes the most significant risk for any development-stage mining company: funding for construction. The context is crucial: this financing was secured just 12 days after the company released a world-class Feasibility Study (FS) for its Panuco project, which outlined a low initial capital expenditure (CAPEX) of US$173 million and an exceptional after-tax IRR of 111%.
- Fully Funded for Construction: As of July 31, 2025, Vizsla had approximately US$285 million in cash. With the addition of the US$300 million from these convertible notes, the company's pro-forma cash position is nearly US$585 million. This cash balance alone is more than three times the initial CAPEX required, completely de-risking the construction funding. This also comes on top of a previously announced mandate letter with Macquarie Bank for a US$220 million senior secured debt facility, providing an enormous capital cushion.
- Strong Institutional Validation: The offering was upsized from US$250 million to US$300 million, indicating very strong demand from global institutional investors. This serves as a major vote of confidence in the project's economics and the management team's ability to execute.
- Dilution and Market Reaction: The stock price fell from a close of $6.57 on the day of the announcement (Nov 19) to $5.62 the following day. This is a typical market reaction to a convertible offering. The conversion price of US$5.84 per share represents future dilution of approximately 51.4 million shares if fully converted. While this overhang exists, it is a common and often cost-effective way for developers to secure capital. The immediate and certain benefit of having a fully funded project on a clear path to production far outweighs the risk of future dilution.
In summary, this news solidifies Vizsla Silver's transition from an explorer to a well-funded developer. The company now has the financial strength to execute its development plan for Panuco without the need for further dilutive equity raises for construction, a rare and enviable position for a junior miner.
Vizsla Silver Corp. is a Canadian exploration and development company focused on its 100%-owned flagship Panuco silver-gold project in Sinaloa, Mexico. The project is located in a historic mining district which the company has successfully consolidated. Vizsla has rapidly advanced Panuco through exploration, culminating in a January 2025 mineral resource estimate of 222.4 Moz AgEq in the Measured & Indicated category, and a November 2025 Feasibility Study demonstrating robust economics for a high-grade, large-scale silver mine. The company's strategy is to bring Panuco's "Project 1" into production while simultaneously exploring the vast, underexplored district for additional mineralized centers ("Project 2").