VIZSLA SILVER ANNOUNCES PROPOSED OFFERING OF US$250 MILLION OF CONVERTIBLE SENIOR NOTES
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On November 19, 2025, Vizsla Silver announced a proposed offering of US$250 million of convertible senior notes due in 2031. The proceeds are intended for the exploration and development of the Panuco Project, potential future acquisitions, general corporate purposes, and the purchase of cash-settled capped calls. This offering is subject to market conditions and regulatory approvals.
This financing announcement is a material and positive step for Vizsla Silver, representing a critical execution phase following the exceptionally strong Feasibility Study (FS) released just one week prior on November 12, 2025.
The FS outlined a world-class project with an after-tax NPV(5%) of US$1.8 billion, an IRR of 111%, and a modest initial capital requirement of US$173 million. The key challenge for any developer post-FS is securing the necessary capital for construction. This US$250 million convertible note offering, combined with the US$220 million senior secured project finance facility mandate signed with Macquarie Bank in September 2025, completely addresses and removes the financing risk for Panuco's construction.
The total potential capital raise of US$470 million far exceeds the initial CAPEX, indicating management's strategy to not only fully fund Panuco to production but also to maintain a strong treasury for aggressive district-scale exploration ("the hunt for Project 2"), working capital, and potential further acquisitions like the Santa Fe project.
While convertible debt introduces the risk of future equity dilution, this is a standard and often advantageous financing method for development-stage companies. It typically comes with a lower interest rate than straight debt. Critically, the company plans to use a portion of the proceeds to purchase capped calls, a strategic move designed to mitigate potential shareholder dilution upon conversion. This demonstrates that management is proactively protecting shareholder interests.
The timing of this offering is astute, capitalizing on the strong share price performance and positive market sentiment following the blockbuster FS. It signals clear intent to proceed with construction and positions Vizsla to become a significant silver producer. The market's reaction, with the stock price holding firm, suggests investors view this move as a prudent and necessary step to de-risk the path to production.
Vizsla Silver Corp. is a Canadian exploration and development company focused on advancing its 100%-owned, flagship Panuco silver-gold project in Sinaloa, Mexico. The project is located in a prolific, past-producing district.
The company has aggressively de-risked Panuco through systematic exploration. Key milestones include: - Jan 2025: An updated Mineral Resource Estimate showed a 43% increase in Measured & Indicated resources to 222.4 Moz AgEq at a high grade of 534 g/t AgEq. - July 2024: A Preliminary Economic Assessment (PEA) demonstrated robust project economics. - Nov 2025: A highly positive Feasibility Study was delivered, showing an after-tax NPV of US$1.8B and a 111% IRR, confirming the project's tier-one potential. - The company is also expanding its regional land package, acquiring the nearby Santa Fe project in May 2025, and is actively exploring for a second major mineralized center ("Project 2") within its extensive land holdings.