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Vizsla Silver Secures $10 Million Working-Capital Facility from Mexican Government-Backed FIFOMI for Panuco Silver-Gold Project
Vizsla Silver Corp. (NYSEAMERICAN: VZLA), a Canadian mineral exploration and development company, announced on 26 May 2026 that it has obtained an unsecured working‑capital facility worth MXN 173 million (approximately US$10 million) from FIFOMI, a Mexican government‑backed financial institution. The loan is intended to finance operating expenses and working‑capital needs for the company’s flagship Panuco silver‑gold project in the state of Sinaloa.
The facility carries a five‑year term and an interest rate that is tied to Mexico’s TIIE funding rate plus a margin of 4.6681 %. A two‑year grace period is granted on principal repayments, allowing the company to focus on development cash flow. FIFOMI’s credit committee approved the loan on 4 May 2026, and the company will pay a one‑percent commission fee on the total proceeds.
According to a statement released by Vizsla Silver, the capital will be used to cover operating expenses and working‑capital requirements associated with the Panuco project. The company said the funding will strengthen the project’s development and support local investment in the region. CEO Michael Konnert noted that the partnership “validates the Panuco Project’s economic importance to both Sinaloa and the broader Mexican mining sector.”
Vizsla Silver is headquartered in Vancouver, British Columbia, and owns 100 % of the Panuco property. The company’s November 2025 feasibility study, available on its website, projects an initial nine‑year mine life with an average annual production of 17.4 million ounces of silver equivalent. The study estimates an after‑tax net present value of US$1.8 billion (at a 5 % discount rate) and an internal rate of return of 111 %. The company’s strategy is described as “dual‑track”: advancing mine construction while continuing district‑scale exploration.
The Panuco site is located in Sinaloa, a state that has a diversified economy including agriculture, fisheries, tourism, and mining. Mexico is the world’s largest producer of silver and a major producer of gold, copper, and zinc. In recent years, the Mexican government has sought to attract foreign investment into the mining sector while tightening environmental and tax regulations.
FIFOMI, which operates as a public trust within the Mexican financial system, is overseen by the Ministry of Finance and Public Credit. The institution’s mandate is to provide “very competitive debt financing” to small and medium‑sized mining projects, thereby strengthening the industry’s financial base.
The working‑capital facility is a key step for Vizsla Silver as it moves the Panuco project closer to commercial production. The company has already awarded an equipment supply agreement to FLSmidth and secured engineering, procurement, and construction management contracts to accelerate construction. The new financing will help bridge the gap between the feasibility stage and the start‑up phase.
At present, Vizsla Silver is preparing for the next phase of development, which will include detailed mine design, permitting, and the procurement of critical equipment. The company has indicated that the facility will support these activities and provide a buffer for operational cash flow during the initial years of production.
The partnership with FIFOMI underscores the growing interest of Mexican financial institutions in supporting domestic mining projects, especially those that can create local jobs and contribute to regional development. For investors, the facility represents a tangible financial commitment that may reduce the risk profile of the Panuco project.
As the company moves forward, stakeholders will watch for the timing of the first principal repayment, the commencement of mine construction, and the eventual start of production. The Mexican government’s continued support for mining projects through institutions like FIFOMI may signal a broader strategy to attract foreign capital into the sector.
In summary, Vizsla Silver’s receipt of a $10 million working‑capital facility from FIFOMI provides the financial foundation needed to advance the Panuco silver‑gold project in Sinaloa. The loan’s terms, including a grace period and a TIIE‑based interest rate, align with the company’s development timeline. The partnership is expected to accelerate the project’s progress toward commercial production while reinforcing the economic value of mining in Mexico’s northwest region.
The facility carries a five‑year term and an interest rate that is tied to Mexico’s TIIE funding rate plus a margin of 4.6681 %. A two‑year grace period is granted on principal repayments, allowing the company to focus on development cash flow. FIFOMI’s credit committee approved the loan on 4 May 2026, and the company will pay a one‑percent commission fee on the total proceeds.
According to a statement released by Vizsla Silver, the capital will be used to cover operating expenses and working‑capital requirements associated with the Panuco project. The company said the funding will strengthen the project’s development and support local investment in the region. CEO Michael Konnert noted that the partnership “validates the Panuco Project’s economic importance to both Sinaloa and the broader Mexican mining sector.”
Vizsla Silver is headquartered in Vancouver, British Columbia, and owns 100 % of the Panuco property. The company’s November 2025 feasibility study, available on its website, projects an initial nine‑year mine life with an average annual production of 17.4 million ounces of silver equivalent. The study estimates an after‑tax net present value of US$1.8 billion (at a 5 % discount rate) and an internal rate of return of 111 %. The company’s strategy is described as “dual‑track”: advancing mine construction while continuing district‑scale exploration.
The Panuco site is located in Sinaloa, a state that has a diversified economy including agriculture, fisheries, tourism, and mining. Mexico is the world’s largest producer of silver and a major producer of gold, copper, and zinc. In recent years, the Mexican government has sought to attract foreign investment into the mining sector while tightening environmental and tax regulations.
FIFOMI, which operates as a public trust within the Mexican financial system, is overseen by the Ministry of Finance and Public Credit. The institution’s mandate is to provide “very competitive debt financing” to small and medium‑sized mining projects, thereby strengthening the industry’s financial base.
The working‑capital facility is a key step for Vizsla Silver as it moves the Panuco project closer to commercial production. The company has already awarded an equipment supply agreement to FLSmidth and secured engineering, procurement, and construction management contracts to accelerate construction. The new financing will help bridge the gap between the feasibility stage and the start‑up phase.
At present, Vizsla Silver is preparing for the next phase of development, which will include detailed mine design, permitting, and the procurement of critical equipment. The company has indicated that the facility will support these activities and provide a buffer for operational cash flow during the initial years of production.
The partnership with FIFOMI underscores the growing interest of Mexican financial institutions in supporting domestic mining projects, especially those that can create local jobs and contribute to regional development. For investors, the facility represents a tangible financial commitment that may reduce the risk profile of the Panuco project.
As the company moves forward, stakeholders will watch for the timing of the first principal repayment, the commencement of mine construction, and the eventual start of production. The Mexican government’s continued support for mining projects through institutions like FIFOMI may signal a broader strategy to attract foreign capital into the sector.
In summary, Vizsla Silver’s receipt of a $10 million working‑capital facility from FIFOMI provides the financial foundation needed to advance the Panuco silver‑gold project in Sinaloa. The loan’s terms, including a grace period and a TIIE‑based interest rate, align with the company’s development timeline. The partnership is expected to accelerate the project’s progress toward commercial production while reinforcing the economic value of mining in Mexico’s northwest region.
