#Canada #Vancouver #Vizsla Silver #Panuco Project #Macquarie

Vizsla Silver's Major Financing Achievement

Vizsla Silver Corp. has made a significant leap in its developmental journey by securing a project financing mandate worth up to $220 million in collaboration with Macquarie Bank Limited. This funding is dedicated to the advancement of the high-grade underground Panuco silver-gold project located in Sinaloa, Mexico.

Details of the Financing Arrangement

The agreement marks a crucial step for Vizsla as it plans to utilize these funds for the construction and development phases of the Panuco Project. Macquarie, serving as the lead arranger, will manage this financing through a consortium of banks, holding a 70% stake in the deal. The remaining 30% will be under syndication management by Macquarie.

Initially, Vizsla Silver will have access to $25 million through an early-drawdown tranche. This initial amount is earmarked for immediate needs including the early stages of construction preparation and working capital requirements. The remaining funds will become accessible after fulfilling customary conditions, which encompass the completion of a feasibility study and associated permitting processes.

Panuco Project: A Prime Asset

The Panuco Project has emerged as a promising high-grade discovery within a historic mining district, encompassing 7,189.5 hectares of land. This area has historical production records and consists of extensive mine infrastructure, including nearly 86 kilometers of vein lengths. The resource estimates for the project indicate a combined measured and indicated mineral resource of around 222.4 million ounces of silver equivalent and an inferred resource of approximately 138.7 million ounces.

The combination of Vizsla's resource endowment and Macquarie's financial backing positions the company strongly as it aims to transition Panuco into production. Michael Konnert, the President and CEO of Vizsla Silver, emphasized the significance of this partnership, stating, “Macquarie brings deep expertise in structuring project financing for large-scale mining developments, reinforcing Panuco as a globally recognized, financeable asset.”

Strategic Importance of the Financing

The funding is expected to de-risk the project and set the stage for its eventual transition into a operating mine. Konnert stated that with this financing support, Vizsla is well-positioned to not only address the financial aspects but also to leverage their existing cash reserves, aiming for a seamless transition into construction. Moreover, the project is currently progressing with tangible evidence of operational efficiency, bolstered by the results from the Morgan test mine.

The financing process has garnered significant interest across North America and Europe, reflecting the competitive landscape in securing capital for mining ventures. Vizsla's rigorous selection process culminated in choosing Macquarie due to their favorable cost of capital and alignment with Panuco’s development schedule.

Future Outlook and Key Developments

Vizsla Silver's focus remains on advancing the Panuco Project as per its established timelines. The targeted closing for the financing is slated for the first quarter of 2026, aligning well with the broader development agenda for the project. Both Vizsla and Macquarie are driven to progress this Facility to fruition, and the partnership signals an integrated strategy aimed at effective project execution.

As Vizsla navigates this transformative phase, the expectations are high, with the company aiming to become a leader in the silver mining sector globally. The Panuco project is positioned not just as a mining operation, but as a comprehensive economic engine that could reshape the landscape of silver and gold production in Mexico. The path forward is set with strategic planning, financial fortitude, and a commitment to operational excellence, ensuring that Panuco’s potential is fully realized.

In conclusion, as Vizsla Silver propels towards significant milestones ahead, the collaboration with Macquarie marks not just a financial arrangement but a partnership built on mutual trust, expertise, and a shared vision for the future of mining in Mexico.