CEO and President of Vizsla Royalties. We are a single asset royalty company holding a precious metals NSR royalty covering Vizsla Silver's flagship Panuco project down in Mexico. We'll be making some forward-looking statements today. We are listed on both the TSX Venture Exchange under the ticker VROY, as well as the OTCQB in the United States under the ticker VROYF. The investment thesis here is really threefold. As mentioned, we are a single asset royalty holder, again being on that Tier 1 silver gold project owned by Vizsla Silver down in Mexico. This is arguably the highest grade undeveloped silver primary resource on the planet. If in production today, it would really represent the third largest silver primary mine in the world.
Where Vizsla Silver is now, they're in the development stage with a PEA that they published in 2024, rapidly advancing towards a feasibility study to come out in the coming months, ultimately targeting that first silver in the second half of 2027. Inherently, there's tremendous amounts of development upside associated with this file. Of course, as Vizsla Silver progresses through its technical studies and gets into production, there's also tremendous amounts of exploration upside. To date, Vizsla Silver's only tested about 30% of its known targets, and the PEA mine plan and pending FS mine plan accounts for about 10% of the known veins that Vizsla Silver's outlined in the district. Lots of room to go both on that development front as well as on the exploration front. Lastly, it's really the timing.
We've got a backdrop here of all-time highs in the gold space and, of course, 15-year highs in the silver space at $42 per ounce. Furthermore, when you look at the precedent transactions that have occurred in the space in terms of M&A, it really bodes well for significant premiums in the royalty space. Taking a look at the principal assets, as mentioned, single asset royalty holder, we've got a 3.5% net smelter return royalty, which simply means everything else is paid for, so no costs are incurred in terms of royalties ownership. We get everything off that top. 3.5% covering the mine plan and an additional 2% NSR covering all of those dark green concessions that you see here on this map, which really represent those exploration concessions.
In addition, Vizsla Royalties holds a right of first refusal or a ROFR on any additional royalties that Vizsla Silver is to create within 24 months of that initial spin-out. We spun this company out of Vizsla Silver to its shareholders just about a year ago today. A little bit more about the project and its location. Excellent infrastructure. This is a past-producing district that dates back all the way to the conquistadors, but it's never been pushed forward on a consolidated and explored on a consolidated basis with modern technology. It's never had any commercial or mechanized mining in its history, even though it's produced about 100 million ounces of silver equivalent in those 500 years. Where Vizsla Silver is now, they're rapidly advancing it towards production.
They've got an incredibly large, robust resource base, over 365 million ounces of silver equivalent, again targeting that production in the back end of 2027. It's all about de-risking right now for Vizsla Silver. With their corporate strength, including over $200 million U.S. in cash, no debt, and a recently announced mandate for project finance up to an additional $200 million U.S., Vizsla Silver's in a very good position to push this project forward and get it into production, particularly with a very low CapEx hurdle of just $224 million U.S. There's significant growth in resources to date. You can see that trajectory on this slide. 2022 published the first resource. We're only really highlighting the measured and indicated component. Those are your highest confidence classifications of resource. That's really because as you go from PEA into feasibility study, you can only incorporate the M&I classification.
Even though it's very clear that we have almost 160 million ounces of inferred mineralization, the mine plan from the PEA incorporating 156 up to the pending feasibility to come out in the next few months here to 222 million ounces. That's the new foundation for the pending feasibility study. It represents a 43% increase at a 5% higher grade from that that was stated in the PEA. This is what the PEA production profile looks like. The reason why we show this is because this is what's going to directly translate into the cash flows owing to the royalty company. You can see here doing over 20 million ounces per annum in those first few years based on the PEA production profile.
We suspect this could be outpaced not only in terms of initial production, but certainly pushed out further into the mine plan based on that updated resource feeding into the updated feasibility study that should come out here shortly. Here's a closer look at the site layout where you can see the 3.5% NSR is covering all of this light green and then this kind of off green color. That's where the 2% is owing to. Again, significant exploration upside. All of the 11 structures that make up that resource base that feed into the PEA and of course the pending FS, they're open in every single direction along strike laterally as well as at depth. There's lots of room to continue to grow that mine plan just incrementally stepping out along those known structures. There's all this tremendous ground that exists outboard.
The size of the initial property package here is around the size of the island of Manhattan. It's about 14 kilometers long by about 7 kilometers wide. The PEA and FS mine plan just covers this small blue hash polygon, just a postage stamp down in the southwest corner of the map. You can see all these hot magenta colors. These represent samples that grade over 500 grams per ton silver equivalent, which is really just the silver and the gold. We made a recent discovery here at Animas supporting the potential to find additional centers of high-grade mineralization, which could certainly stand to bolster not only Silver's valuation, but of course Vizsla Royalties and its shareholders. The best part about the royalty model is you can do this on a non-dilutive basis.
Vizsla Royalties and its shareholders do not have to dilute, outlay any further capital to explore, to drill. It all happens for us in these discoveries that Vizsla Silver makes. We get to realize that success by not diluting or raising any more capital. Now when we look at the development timeline, you can see where things sit. Permits have been submitted, expecting to receive those permits at the midpoint of next year. Feasibility study is imminent. I already mentioned that the project finance mandate has been awarded with a nice attractive cost of capital for Vizsla Silver. This stands to really highlight how de-risked this project is. Following a construction decision by Vizsla Silver's board of directors next year, about 14 to 18 months following that, we should be at first silver in the back end of 2027.
Really discussing all of this potential in the operational and exploration upside as Vizsla Silver de-risks and gets into production, the value of Vizsla Royalties should increase steadily as it's de-risked and puts into production. There's another way to look at, you know, a value re-rate for Vizsla Royalties. That's when we consider an acquisition multiple. Really, when we look out over the fence at the royalty players, they trade at a significant premium to even the gold major producers or the silver major producers. You can see here when we look at those big three of Royal Gold, Franco, and Wheaton, they consistently trade over that two times NAV multiple, basically suggesting that they could pay over two times for Vizsla Royalties and still have it be accretive to their overall portfolio.
Another way to look at it is those recent precedent transactions, one being Triple Flag acquiring Origen, a single asset royalty holder, as well as Royal Gold acquiring Great Bear Royalties, a single asset royalty holder that was pre-resourced. You can see on this slide those acquisition multiples average around 1.6 times. Where Vizsla Royalties is trading today at about 1.1 times, there's substantial runway here on an acquisition multiple front for shareholders to have a nice strong re-rate. To kind of bring things home here, why Vizsla Royalties? Pernuco is a standout project being the highest grade, largest undeveloped silver primary resource on the planet. As Pernuco is de-risked by Vizsla Silver, the re-rate will naturally occur, getting closer and above to that average multiple that the peer group and the royalty companies are trading.
There still exists tremendous upside, both of course on the operational front, given the feasibility is progressing, all those structures are open-ended, and of course that exploration upside that exists. The timing, you know, the backdrop of the high commodity price, the supply-demand deficit that still exists in the space, that is only growing. This is a project that's the right time, led by the right people, and in the right territory. With that, I'll close things off. Thank everyone for attending the presentation today. If you've got any questions, please reach out. We've got our information here, info@vizslaroyalties.com. We're happy to answer any questions and provide an update. Thank you very much.