Vizsla Silver (VZLA) said Wednesday it plans to raise $250 million through offering of convertible senior unsecured notes due 2031.

The company said it may grant buyers a 13-day option to purchase up to $50 million in additional notes.

Proceeds will go toward the Panuco Project, potential acquisitions, and general corporate needs, Vizsla added.

The notes will bear semiannual interest and may convert to shares, cash, or both, with terms including the conversion rate to be decided at pricing, the company said.

Vizsla also expects to enter capped call transactions with counterparties to manage potential dilution or cash exposure tied to note conversions, it added.

The company said the deal is subject to regulatory approvals and the notes will be offered only to qualified institutional buyers under applicable exemptions.

Shares of the company were down nearly 14% in recent after-hours activity.