New Agreement to Continue Developing the Panuco ProjectBy Paloma Duran | Wed, 06/02/2021 - 16:36
Vizsla Silver Corp. announced that it has reached an agreement with Canaccord Genuity Corp. that will provide CAD$60 million (US$49.66 million), allocated to continue exploring and developing its Panuco silver-gold project in Sinaloa.
The offer was for 24 million units at a price of CAD$2.50 (US$2.07) per unit, which includes one common share Vizsla and half of one common share purchase warrant. A complete warrant allows to purchase a common share at a price of CAD$3.25 (US$2.69) for 18 months after closing the deal. Canaccord also gave the option to purchase an additional 15 percent of units within the next 30 days of the closing date, which is expected to be in June 2021.
The net proceeds from the deal will be used to further develop and explore the Panuco project, make option payments, identify more opportunities, and for working capital and corporate purposes.
The district-scale Panuco epithermal silver-gold vein project has 9,386.5 ha in Sinaloa. The property has a long mining history, as its first silver production occurred in the 16th century and it has been producing intermittently ever since. Vizsla believes there is significant discovery potential for high-grade gold and silver, and as a result, is conducting an extensive drilling program.
Vizsla has identified 122 targets across the district and has currently analyzed 91 of them. Each target is organized by size and potential grade so that it can be prioritized. In 2020, this process allowed eighteen targets to be drilled, of which five are in the advanced or resource drilling stage.
The process has helped Vizsla to be successful in a large and under-explored district. The company announced that it will continue to use this process in 2021, especially as it wants to expand the mineralized zones and discover new deposits at Panuco.
The company recently provided an update on its geophysical survey at the Panuco project, which has now been completed. Fixed-loop electromagnetics have detected massive sulfide mineralization in the Napoleon vein, which has high grades for silver, gold, and base metals. Additionally, new targets have been identified along the Napoleon and Cinco Senores Vein Corridor. Vizsla is planning airborne EM survey of the entire property to generate targets and detect the main style of mineralization in the district.
The company's goal is to have a production of 12Moz of silver equivalent per year at Panuco. The company said it remains Mexico's most aggressive explorer in the silver sector and that for the first half of 2021, it plans to drill more than 40,000 m and better understand what is underneath the property.
“I believe the future is even brighter for Vizsla in 2021. Our opportunity at the Panuco district is unparalleled given the size of the district, the numerous discoveries made in 2020 and the high grades that we continue to drill. On top of all this, we have a well-mapped-out pathway to production that differentiates Panuco from other properties in Mexico,” said Michael Konnert, CEO of Vizsla Resources.