Vizsla Silver Corp. (TSX: VZLA) has secured a modest but meaningful vote of confidence from Mexico City, with its local subsidiary Minera Canam inking an unsecured MXN$173 million working capital facility with Fideicomiso de Fomento Minero, the state-backed mining lender known as FIFOMI.
At roughly US$10 million, the facility is hardly transformative for a company advancing a project with an after-tax net present value of US$1.8 billion and initial capital expenditure requirements of nearly US$240 million. The signal, however, carries more weight than the dollar figure suggests.
FIFOMI operates as a public trust under Mexico’s Secretaría de Economía, with a mandate to finance and support the domestic mining sector. Its decision to extend credit to Minera Canam, approved by the institution’s internal credit committee on May 4, amounts to a formal endorsement of the Panuco silver-gold project from the government of the country where the asset sits.
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The facility carries a five-year term priced at the TIIE funding rate plus 4.6681%, with quarterly interest and principal payments and a two-year grace period on principal. A one-time commission fee of 1.0% applies. Proceeds will fund operating and working capital expenditures at Panuco.
CEO Michael Konnert framed the agreement as validation of Panuco’s economic importance to Sinaloa and to Mexico more broadly, “We are encouraged by the strong alignment this facility represents between Vizsla and the Government of Mexico in advancing the Panuco Project. The addition of this facility will serve to strengthen the mining community of Concordia and support local suppliers, contractors and investment in the State of Sinaloa.”
The company completed a feasibility study for Panuco in November 2025, outlining annual production of 17.4 million silver equivalent ounces over an initial 9.4-year mine life, with a 111% IRR and a seven month payback.
Vizsla Silver last traded at $4.83 on the TSX.
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