Vizsla Silver signs mandate letter for Panuco financing

Executive Summary

• Vizsla Silver Corp. signed a mandate letter with Macquarie Bank to arrange a senior secured project‑finance facility of up to US$220 million for the development of its Panuco underground silver‑gold mine in Sinaloa, Mexico.
• An initial US$25 million early‑drawdown tranche is available immediately for construction preparation and working capital; the remaining capacity will be drawn after feasibility study completion, equity financing, and permitting.
• The facility carries an interest margin of 5.75% (≈10% total) during construction and 5.25% (below 10% total) post‑completion, with no mandatory hedging required, and is expected to fully fund the project through first silver production.

Key Details

• Mandate Structure:
• Lead arranger/agent/sole underwriter: Macquarie Bank Ltd.

• Macquarie retains a 70 % interest in the facility; the remaining 30 % will be syndicated to other banks.

• Facility Size & Drawdown:

• Total commitment: US$220 million senior secured loan.
• Early‑drawdown tranche: US$25 million available upon execution of definitive credit documents and customary conditions.

• Remainder to be drawn after satisfaction of feasibility study, equity raise, and permitting milestones.

• Interest Terms:

• Construction period: margin 5.75 %, total cost ≈ 10 % (based on current SOFR).
• Post‑completion: margin 5.25 %, total cost <10 %.

• No mandatory hedging required.

• Use of Proceeds:

• Early tranche – development, construction preparation, and working capital.

• Subsequent draws – mine construction, commissioning, infrastructure, and related costs contingent on a construction decision.

• Closing Timeline: Targeted for Q1 2026, aligned with Vizsla’s overall project schedule.

• Governance Disclosure: Director David Cobbold (vice‑chairman of Macquarie) did not participate in board deliberations or vote on the facility; independent directors approved the mandate.

• Project Context:

• Panuco is a high‑grade underground silver‑gold discovery with 222.4 M oz measured & indicated and 138.7 M oz inferred resources (as of Jan 6 2025).

• Preliminary economic study (July 2024) projects 15.2 M oz eq annual production, 10.6‑year mine life, after‑tax NPV US$1.1 B, IRR 86 %, and a nine‑month payback at US$26/oz Ag.

• Technical Disclosure: Qualified Person – Dr. Jesús Velador, VP Exploration, NI 43‑101 sign‑off.

Notable Quotes

“Securing this debt financing mandate brings us one step closer to derisking Panuco into production… the facility is expected to fully fund the Panuco project through to first silver production.” – Michael Konnert, President & CEO, Vizsla Silver Corp.

Materiality Assessment: Material – Positive (significant financing that enables project construction and de‑risking).