Vizsla Silver has signed an agreement to acquire Santa Fe Project, a gold-silver mining property in Mexico, through an agreement combining cash and shares. This acquisition, which includes both production and exploration concessions, expands the company’s footprint by 12,229 hectares, located directly south of its flagship Panuco Project.
The Santa Fe Project is equipped with existing on-site production infrastructure, notably a 350-tonne-per-day mill, and is fully surveyed with advanced LiDAR, aero-magnetic, and radiometric technologies.
Vizsla Silver has structured the acquisition through two primary agreements- an option agreement for production concessions and a purchase agreement for exploration concessions.
Under the option agreement, Vizsla Silver has the right to acquire a 100% interest in specific production concessions over five years. The company must invest $4m in exploration expenditures according to a phased schedule and pay $1.5m in cash to the optionors. Additionally, Vizsla will issue 1.3 million common shares in a structured release over five years, subject to Canadian securities laws and voluntary resale restrictions.
Vizsla Silver president and CEO Michael Konnert said: “Vizsla Silver continues to expand its land position in western Mexico along the highly prospective Sinaloa Silver Belt with the acquisition of the producing Santa Fe mine.
“With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces AgEq of initial annual production envisioned for Panuco Project #1. This is supported by permitted operating infrastructure including a 350 tpd flotation plant and open-ended mineralised vein structures located right at surface. Furthermore, the mine production and historic drilling completed to date covers less than 12% of the overall Santa Fe property package.”
Situated 22km southeast of Panuco and just south of the recently acquired San Enrique prospect, the Santa Fe Project is strategically positioned along the Panuco – San Dimas corridor. The site boasts a fully operational 350 tpd flotation plant that produces silver and gold, leveraging a northwest-trending epithermal vein. From 2020 to 2024, the Santa Fe mine processed 370,366 tonnes of ore, achieving average head grades of 203 grams per tonne (g/t) silver and 2.17 g/t gold. The project area benefits from comprehensive geological surveys and mapping, alongside IP geophysics around the mine area, enhancing its exploration potential.
Both agreements are contingent on regulatory approvals from the TSX and NYSE, along with customary closing conditions.
