05:00 PM EDT, 06/04/2025 (MT Newswires) -- Vizsla Royalties ( VROYF ) after trade Wednesday said it agreed to acquire an additional 3% net smelter returns (NSR) royalty on part of the Panuco-Copala Silver-Gold Project in Sinaloa, Mexico.

This project is owned and operated by Vizsla Silver ( VZLA ) and is advancing toward production, the company added.

Vizsla Royalties ( VROYF ) already owns a 0.5% NSR on the same part of the project, known as the Silverstone Concessions, and will hold a total 3.5% NSR once the deal is complete. The company also holds a 2% NSR on other parts of the Panuco Project, called the Rio Panuco Concessions.

To acquire the additional royalty, Vizsla Royalties ( VROYF ) will pay US$40 million. This includes exercising its right to repurchase half of the 3% royalty for US$1.95 million and purchasing the remaining half for US$38.05 million, according to the statement.

To fund this purchase, Vizsla Royalties ( VROYF ) will raise C$54.8 million in a a bought-deal offering. The company will sell an underwriting syndicate 27.4-million shares priced at C$2 per share. There is also an option for the underwriters to buy up to 15% more shares within 30 days after the offering closes.

The money raised will go toward funding the royalty acquisition and for general corporate purposes, the company said.

Both the royalty deal and the share offering are expected to close around June 12, pending regulatory approvals, including from the TSX Venture Exchange.

Vizsla Royalties ( VROYF ) shares closed down $0.14 to $2.26 on the TSX Venture Exchange.