Vizsla Royalties. Thanks for being here today so I can walk you through the Vizsla Royalties story and explain to you why Vizsla Royalties is best in class in terms of silver royalties with its focus on the Panuco project down in Mexico. We are listed on both the Toronto Stock Exchange and the Venture under the ticker VROY and the OTCQB under the ticker VROYF. I will be making some forward-looking statements today. This opportunity is a threefold investment thesis. It's quite a simple story given that we are a single asset royalty company holding a single royalty on the Panuco project, Vizsla Silver's flagship silver-gold asset down in Mexico. Now, there are three real ways to win on this investment.
One is the project development as Vizsla Silver continues to de-risk and advance its Panuco project, most recently through its updated feasibility study that was announced about two weeks ago, pushing forward through a test mining program and advancing towards its end, all targeting first silver in the back end of 2027. There's lots of operational upside still remaining. In addition, there are tremendous amounts of exploration upside. To date, Vizsla Silver has only just scratched the surface in terms of its exploration potential in this vastly underexplored district. W ith new discoveries made far, far away from the mining center that's highlighted in the feasibility, there's still room to grow and bolster that mine plan well beyond what's been highlighted to date. T hen timing. You know, given the scarcity of these tier one silver assets, there's a scarcity of tier one silver royalties, frankly, in the space today.
W hen you combine this with a the recent precedent transactions consolidation that's been occurring in the mining royalty space with the world record economic, I mean, you know, commodity price backdrop that we're sitting in here with silver and gold at all-time highs, you can really see why this is the right time to be paying attention to not only Vizsla Silver and its Panuco project, but of course, Vizsla Royalties and its net smelter return royalty on that asset. Now, what is Vizsla Royalties? We are, as mentioned, a single asset royalty holder. It came to be as a spinout from Vizsla Silver. In fact, in January of last year, Vizsla Silver spun out two royalties privately.
It was a 2% net smelter return or an NSR royalty covering some of the exploration concessions and then a 0.5% NSR covering the operating concessions that are stated in the FS that just came out. Now, that was spun out privately in August of last year. That was listed on the TSX Venture Exchange. T hen in June of this year, we raised money. We raised $40 million to purchase an additional 3% NSR from an underlying third-party holder. That now brings our ownership up to 3.5%, covering 98% of that proposed mine plan, where that remaining 2% is covered by the 2% NSR. I think this map on this next slide really does highlight it. You can see here all the light green concessions on this map are covered by 3.5% NSR. That means 3.5% of the production comes directly to Vizsla Royalties and its shareholders.
T hen the dark green, you can see it's covering just the top part of the Napoleon structure in the western edge of that map. That's all covered by a 2% NSR. W e receive 2% on any production that comes from those concessions. W here the project itself is located here, you're about an hour drive from the coastal city of Mazatlán in western Mexico. Mazatlán has about a million individuals, but you can see here this infrastructure is second to none. There's deep-sea ports, there's international airports, there's rail that runs the coast, and of course, highways bisect the district. But arguably most important are these green lines that represent high-voltage transmission lines . high-voltage transmission lines runs right over top of the proposed mill site, providing excellent access and the ability to actually push this project forward.
Now, the discoveries here date back all the way to the conquistadors here, but it's never been pushed forward using modern equipment, modern techniques on a consolidated basis. It wasn't until Vizsla Silver consolidated this district, 6,000 hectares owing to Vizsla Royalties coverage. It wasn't until they really consolidated this back in 2019 that we could actually start systematically exploring on that consolidated basis. Made phenomenal discoveries, put out a PEA, and now recently put out that feasibility study securing the economic viability of this project. They have plenty of cash to continue pushing this forward, and I'll touch on that here momentarily. A s mentioned, significant amounts of exploration upside still remaining in this district. Now, when we talk about resource base and resource growth, this is a great slide that just shows the trajectory of when Vizsla Silver drills, it adds ounces to the resource base.
You know, the maiden resource here came out with about 130 million ounces. Next year, another 100,000 meters of drilling added 100 million ounces of silver equivalent to that profile. But I think the most important thing now as we move towards that production decision here, when you look at this darker, more opaque part, that's your measured and indicated. That's what material can inform a reserve statement and can actually make it into a feasibility study. N ot only are you seeing that opaque chart incrementally grow, but all of this more transparent, that's your inferred mineralization. That's not included yet, largely because of a lack of drill density.
A s Vizsla continues to drill, not only will you see this grow, but you'll see more conversion going into that opaque M&I higher confidence category that can serve to be an update to future mine studies before production even occurs. Now, the feasibility study alone, this is the new outline. This is the new production profile. This is really for Vizsla Silver. But again, when 3.5% of Copala-Tajitos, or excuse me, 95% of the material going in here, we get a 3.5% ownership of that. W hen you start talking about what is actually owed to Vizsla Royalties out of this, call it 17.5 million ounces of annual production over the life of the project, well, it equates to roughly 550,000 ounces of silver equivalent. Of course, you're doing a bit more in the earlier years, but that's over the life of the project.
You can start seeing here when you apply even spot numbers or consensus commodity price numbers, how meaningful this project is to royalties in terms of annual cash flows. Now, Vizsla Silver is very well capitalized to actually put this in production and support Vizsla Royalties and its shareholders in realizing those free cash flows. You know, the project capital outlay, as stated in the feasibility, was $240 million. Well, with its current cash position, the recent convertible note proceeds that were announced two weeks ago, it puts Vizsla Silver in a position where they have over 2x in total financing capacity relative to what was stated as the initial CapEx in the feasibility study. This really puts us in an excellent position as royalty holders to ensure that we will get those royalty payments come the back end of 2027. Now, I've mentioned exploration upside.
I'm not going to be able to have time to go through all of it on this call today, but suffice to say, we've got about 93 km of cumulative known tested vein strike that we've identified on just this map here, whereas the project economics that we've just highlighted come from just this blue hash polygon in the corner, right? So you've got about 8% of that 93 km covered by economics. That's highlighting tremendous areas to continue testing, making new discoveries, expanding that production profile beyond what is in the study. There's 12 structures that make up the resource base. They are all open in every direction, laterally along strike and vertically at depth. Yet again, more areas for us to expand, convert, and grow. A new novel discovery was made earlier on in the year at the Animas target.
You can see that in the central portion of this district in this map. That discovery was a world-class discovery, 6 m true width, grading almost 900 g/t silver equivalent. Now, that's really important because as a royalty holder, we don't have to outlay any capital. We don't have to dilute to drill or to develop this project. We get to let Vizsla Silver spend their capital. E very incremental success they have at the drill bit or at the test mine or in development, Vizsla Royalties and its shareholders get to benefit greatly from that work. Now, the development timeline. All these checkmarks have been accomplished. We sit right here. Where we're waiting now is for Vizsla Silver to receive its permits. They submitted their MIA application, which is their big environmental permit, in February of this year.
The expectation is to receive the permit sometime in H1 of 2026. Once that permit is received, well, you're fully financed, you've got the permits and the feasibility is out, the board will be able to make on Vizsla Silver side a construction decision, and then you're into that 18-month build window. That's exactly where we'll get to for that first silver, about six-month commissioning to reach that commercial steady-state production early into Q1 of 2028. Now, the team here, very much aligned with that of Vizsla Silver. Michael Konnert, Executive Chairman of Vizsla Royalties. He's founder, President, CEO, and Director of Vizsla Silver. I am the CEO of Vizsla Royalties. I'm also a senior vice president at Vizsla Silver. L astly, Simon Cmrlec here. He's Director and COO of Vizsla Silver, and he's our lead director at Vizsla Royalties.
The point I'm trying to drive home here is that there is extreme alignment between the two files, not only to mention the Inventa Capital Group, which of course is the private parent umbrella to Vizsla Silver and Vizsla Royalties. Now, when we look at the cap structure here, you can see we've been trading quite well. There's about 89, or excuse me, 79 million shares fully diluted outstanding, trading at around just over CAD 300 million market cap valuation today. We do have coverage from three notable analysts, Carey at Canaccord, Craig at Raymond James, and Cosmos at CIBC. I will point out that Raymond James is underwater right now. Our stock is trading higher than their incremental target. But that happens sometimes, right? This is a frothy space at times.
Y ou know, when you've got commodity prices running where they are, the analyst community is struggling to catch up. There's a delta between analyst consensus and commodity or spot commodity pricing. When you look at our shareholder base, we have the same shareholders that Vizsla Silver does. T hat shouldn't be any surprise given, as I mentioned, this is a direct spinout. So at the time of distribution, the spinout for every three shares of Vizsla Silver that you held at the time, you would have received one share in Vizsla Royalties. So again, the shareholder base is the same. The one big difference, of course, is Vizsla Silver retained an ownership of Vizsla Royalties on that spinout. That's since been diluted down following that acquisition of that additional 3% NSR royalty we made in June. So Vizsla Silver currently holds 17% ownership on a fully diluted basis.
W hen we talk about how we're going to grow this project and this file, Vizsla Royalties, well, we get to follow Vizsla Silver, of course, as they continue to de-risk, the value increases alongside with Vizsla Silver, right? As you get closer to production, your NAV multiple will handsomely increase, again, being able to be valued on a cash flow multiple basis once you're closer to that production. W e are trading very well. Y ou can see on this chart in terms of market cap and PNAV multiples, we are very much in line with the rest of this quality, call it tier one, tier two pack of royalty files. W e do catch a premium, given the underlying asset, but also the fact that we are a single asset royalty company.
There's often the expectation that we will transact on this file to a support the ongoing development and exploration of Panuco for Vizsla Silver. But also, this is what happens in the space as companies mature and the bigger companies want to take out, especially given the scarcity of silver primary assets. W e point to two notable precedent transactions. One being Triple Flag acquiring Origen Royalties, another single asset royalty holder, and they acquired it at a 1.8 times acquisition multiple. Noting the PEA stage here is important. Second is Royal Gold acquiring Great Bear Royalties. Now, this was acquired at a 1.4 times price to net asset value acquisition multiple. But more importantly, again, this was taken out pre-resource stage, so even more difficult to actually put a pin on value. Well, where we sit today, Vizsla Royalties is more de-risked than all of those.
Having a multiple that's largely in line with Great Bear Royalties, it's justified. However, we are in a different environment with a different commodity price backdrop, less players overall with a lot more in terms of that M&A happening behind the scenes. W hen we look at these two, we can point to the average, if not the higher end, as saying where at a minimum this file could go in terms of an acquisition multiple. You're looking at that 1.6-1.8 times at a minimum. Where when we go back and look at those big three, you know, they could pay over 2x in terms of price to NAV and still have Vizsla Royalties in its portfolio be accretive to their respective portfolios. T o wrap things up, it's a simple threefold thesis.
You know, you can win here, of course, on the production side as Vizsla Silver continues to de-risk and expand that production profile, even in advance of going into production in the back end of 2027. I've highlighted how much exploration potential exists here. A gain, they are just getting going on the west corner. I've shown you the central and the east where, frankly, they've only mapped about 70% of this district. They're still uncovering historic workings, which are the best vectoring tools we've found to date to find new mineralization. T hen, of course, with the commodity price backdrop, the scarcity of these silver primary assets that are actually scalable today. W hen you factor in the recent precedent transactions, things point to a very nice future for Vizsla Royalties and, of course, Vizsla Silver. W ith that, I'm happy to wrap things up and take any questions.
Thanks, everyone, for joining me today. I look forward to updating you again.