Vizsla Silver Secures MXN$173 Million Working Capital Facility from Mexican Government Financial Institution for Panuco Project

Vizsla Silver's Mexican subsidiary, Minera Canam S.A. de C.V. (Minera Canam), has entered into an unsecured credit agreement for a MXN$173 million (approximately US$10 million) working capital facility with Fideicomiso de Fomento Minero (FIFOMI), a Mexican government-backed financial institution specialised in the mining sector. The facility carries a five-year term with an interest rate based on the TIIE funding rate plus a 4.6681% margin, quarterly interest and principal payments, and a 2-year grace period on principal repayments. FIFOMI's internal credit committee approved the facility on May 4, 2026, with proceeds designated for operating and working capital expenditures related to the Panuco silver-gold project in Sinaloa, Mexico.

Company Overview

Vizsla Silver Corp. (NYSE: VZLA | TSX: VZLA | FRA: 0G3) is a Canadian mineral exploration and development company focused on advancing its 100% owned Panuco silver-gold project in Sinaloa, Mexico. The company completed a feasibility study (FS) in November 2025 outlining an after-tax net present value at a 5% discount rate (NPV5%) of US$1.8 billion and an internal rate of return (IRR) of 111%.

Vizsla Silver Obtains Government-Backed Working Capital Facility

Vizsla Silver announced on May 26, 2026, that Minera Canam S.A. de C.V. (Minera Canam), the Mexican subsidiary holding the Panuco silver-gold project in Sinaloa, Mexico, has secured a working capital facility from a Mexican government financial institution. The MXN$173 million facility, provided by Fideicomiso de Fomento Minero (FIFOMI), received internal credit committee approval on May 4, 2026, following a credit agreement dated February 26, 2026.

President and Chief Executive Officer of Vizsla Silver, Michael Konnert, characterised the facility as a validation of Panuco's economic significance:

"This agreement with FIFOMI represents another important step in the continued endorsement and validation of the Panuco Project as an economically important development project for both Sinaloa and Mexico. We are pleased to establish a relationship with a respected Mexican government-backed mining finance institution whose mandate is to support the responsible growth and long-term competitiveness of Mexico's mining sector."

Facility Structure & Terms

The unsecured credit facility totals MXN$173 million, equivalent to approximately US$10 million at current exchange rates. The facility carries a five-year term with an interest rate structure based on the TIIE funding rate plus a 4.6681% margin. Repayment terms include quarterly interest and principal payments, with a 2-year grace period on principal repayments, providing near-term flexibility. Minera Canam will pay a one-time commission fee equal to 1.0% of the total facility amount. The facility is unsecured, meaning no collateral or security has been pledged against the credit line.

FIFOMI's Role in Mexican Mining Finance

FIFOMI operates as a public trust within the Mexican financial system and is overseen by the Secretaría de Economía of Mexico. The institution was established to promote the development and competitiveness of Mexico's domestic mining industry through the provision of financing, technical assistance and training programmes. FIFOMI's involvement in project-level financing reflects its mandate to support economically viable mining operations that contribute to regional employment and supply chain development.

Konnert emphasised the alignment between Vizsla Silver's development objectives and Mexican government priorities:

"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."

Next Steps

The company stated that the facility proceeds will support operating and working capital expenditures related to the Panuco project. No specific development milestones, permitting timelines, detailed engineering completion dates, or construction decision triggers were disclosed in the May 26, 2026 announcement. The press release reiterated that no production decision has been made for the Panuco project, and that a decision to proceed with construction will only occur following completion and review of detailed engineering, financing arrangements, and receipt of all required permits and approvals.