Vizsla Silver has secured a project finance mandate with Macquarie Bank as lead arranger for up to $220m (C$303.98m) to support the development of the Panuco silver-gold project in Sinaloa, Mexico.
The facility, arranged by a syndicate of banks, with Macquarie holding a 70% interest, will fund construction and development efforts for the high-grade underground project.
The initial $25m tranche from the facility will provide early funding for development, construction preparation and working capital.
The remaining balance will be available upon meeting conditions such as the feasibility study, equity funding and permitting, and will be directed towards mine construction and infrastructure.
The interest expense for the facility is expected to be around 10% during the construction phase and less than 10% after it is completed.
These interest rates are derived from the prevailing Secured Overnight Financing Rates and include margins of 5.75% during construction and 5.25% after completion, without any compulsory hedging obligations.
Macquarie will also serve as agent and sole underwriter, overseeing the syndication process and project monitoring. The closure of the facility is scheduled for the first quarter of 2026.
Vizsla Silver president and CEO Michael Konnert said: “Macquarie brings deep expertise in structuring project financing for large-scale mining developments, reinforcing Panuco as a globally recognised, financeable asset.
“Securing this debt financing mandate brings us one step closer to de-risking Panuco into production. Their support reflects the exceptional quality of Panuco and our team's ability to deliver. Together with the company's current cash position, this debt facility is expected to fully fund the Panuco project through to first silver production, and we remain firmly on schedule with this and other key de-risking milestones, positioning us to transition seamlessly into construction.”
In addition to the facility, Vizsla Silver has also arranged $100m in equity funding through the sale of 33.34 million common shares at $3 each, facilitated by Canaccord Genuity as the sole bookrunner.
