Elemental Royalty Corporation has completed its $239 million acquisition of Vizsla Royalties Corp., securing royalties on the Panuco silver-gold project located in northwest Mexico. The transaction grants Elemental net smelter returns (NSR) royalties ranging from 2% to 3.5% on the project. According to a feasibility study, the Panuco project has the potential to produce up to 17.4 million ounces of silver-equivalent annually over an approximate nine-year mine life.
The acquisition provides Elemental with uncapped, life-of-mine exposure to the high-grade, large-scale operation, alongside significant district-scale exploration potential in the region. Elemental CEO David M. Cole commented on the strategic value of the transaction, stating that the Panuco royalties offer a clear production pathway and substantial long-term exploration upside.
Cole emphasized the company's commitment to partnering with the Vizsla Silver team as the project advances toward production. The deal enhances Elemental's portfolio by increasing its exposure to silver production and establishing a near-term revenue stream from a major mining asset. The acquisition also provides the company with long-term exploration opportunities within the broader district.
While security concerns regarding operations in the region were previously raised, including a security incident involving the abduction of 10 workers in Sinaloa, Mexico, Elemental stated that it conducted extensive due diligence on the project prior to completing the acquisition. The transaction closed in September 2026. Source: Mining.com / Elemental Royalty Corporation press release
Source: mining.com