Vizsla Silver Enters US$220M Project Finance Mandate with Macquarie to Fund Development of the Panuco Project

Core Viewpoint - Vizsla Silver Corp. has secured a mandate letter with Macquarie Bank for a senior secured project finance facility of up to US$220 million to fund the Panuco silver-gold project in Sinaloa, Mexico [1][4]. Financing Details - The facility will be arranged by a syndicate of banks, with Macquarie holding a 70% interest and managing the remaining 30% [2]. - An initial US$25 million early-drawdown tranche may be accessed for early development and working capital, with the remaining funds contingent on customary conditions [3]. - The expected interest cost for the facility is approximately 10% during construction and below 10% post-completion, with a margin of 5.75% and 5.25% respectively [3]. Project Development - The Panuco project is a high-grade silver-gold discovery covering 7,189.5 hectares, with significant existing infrastructure [8]. - The project has an estimated in-situ combined measured and indicated mineral resource of 222.4 million ounces of silver equivalent (AgEq) and an inferred resource of 138.7 million ounces AgEq [10]. - A Preliminary Economic Study indicates an annual production of 15.2 million ounces AgEq over an initial mine life of 10.6 years, with an after-tax NPV of US$1.1 billion and an 86% IRR [11]. Strategic Partnerships - The partnership with Macquarie is seen as a significant step towards de-risking the Panuco project and facilitating its transition into production [4]. - The selection of Macquarie was based on competitive terms and alignment with the project's development timeline [4]. Operational Progress - The Morgan test mine is providing evidence of the technical capabilities and operational discipline of the Vizsla team, validating key assumptions for the feasibility study [5]. - The company is on schedule with key de-risking milestones, positioning itself for a seamless transition into construction [4].