07:58 AM EDT, 05/15/2025 (MT Newswires) -- Vizsla Silver ( VZLA ) was at last look down more than 2% in US premarket trade on Thursday after saying it agreed to buy the Santa Fe Project, including both production and exploration concessions, comprising 12,229 hectare (Ha) located to the south of its flagship Panuco project for a combination of cash and shares.

Under the terms of the option agreement, Vizsla Silver ( VZLA ) has the option to buy a 100% interest in certain production concessions comprising the Santa Fe Project over a five-year period by incurring exploration expenditures of US$4 million, by paying US$1.5 million in cash and by issuing near 1.4 million common shares in the capital of the company to the optionors, all according to a certain schedule.

Under the terms of the purchase agreement, the company agreed to buy certain exploration concessions comprising the Santa Fe Project for US$1.4 million and by issuing to Eduardo de la Pena Gaitan, more than 2.7 million common shares in the capital of the company.

The company said the Santa Fe Project benefits from permitted on-site production infrastructure including an operating 350 tonne per day (tpd) mill located along the Panuco-San Dimas corridor and is covered 100% with LiDAR and high-resolution aero-magnetic and radiometric surveys.

"With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver ( VZLA ) 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," said Vizsla Silver ( VZLA ) Chief Executive Michael Konnert. "Although we continue to be active in terms of corporate development, the company remains focused on delivering a feasibility study for Panuco in the second half of this year, with a goal of achieving first silver in the second half of 2027."

U.S.-listed shares of the company were last seen down 2.2% at $2.20 in pre-market trading, adding to the 5% lost in regular hours of trade yesterday.