Wedoany.com Report-Sept. 9, Vizsla Silver has announced a project finance mandate with Macquarie Bank as lead arranger for up to USD 220 million (CAD 303.98 million) to support the development of the Panuco silver-gold project in Sinaloa, Mexico. The financing will be arranged through a syndicate of banks, with Macquarie holding a 70% interest, and will provide funding for construction and development of the high-grade underground project.

The facility will fund construction and development efforts at the Panuco underground project.

An initial tranche of USD 25 million will be made available to cover early development activities, construction preparation, and working capital needs. The remaining balance will be released upon satisfying conditions that include the completion of a feasibility study, securing equity funding, and obtaining necessary permits. Once these milestones are achieved, the funds will be directed toward mine construction and infrastructure.

The interest expense for the facility is expected to be around 10% during the construction period and slightly less once the project is completed. These rates are linked to the prevailing Secured Overnight Financing Rates, with margins of 5.75% during construction and 5.25% afterward. Importantly, the arrangement does not include compulsory hedging requirements.

Macquarie will also act as agent and sole underwriter, managing the syndication process and overseeing project monitoring. The closure of the financing facility is scheduled for the first quarter of 2026, marking a key step in advancing the Panuco project toward production.

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.”

Alongside the debt facility, Vizsla Silver has also arranged USD 100 million in equity funding through the sale of 33.34 million common shares at USD 3 per share. The equity placement was facilitated by Canaccord Genuity, which acted as the sole bookrunner.

The combination of debt and equity financing strengthens Vizsla Silver’s financial capacity to bring the Panuco project into production. With funding secured and timelines maintained, the company is advancing toward its goal of establishing Panuco as a significant producer in the global silver-gold sector. The dual financing approach provides flexibility and ensures that development, construction, and early production activities can proceed without delay, reinforcing investor confidence in the project’s potential.