Vizsla Silver (VZLA) said Tuesday it awarded an equipment supply agreement to FLSmidth for its Panuco project in Sinaloa, Mexico.

The company said the agreement covers engineering and supply of major process plant equipment across the project's crushing, grinding, thickening, counter-current decantation, Merrill-Crowe, and refining circuits.

Engineering work began immediately, with a formal notice to proceed with equipment manufacturing expected in the coming months, the company said.

Vizsla said the equipment is designed to support the initial 3,300-tonne-per-day phase 1 operation and the planned expansion to 4,000 tonnes per day outlined in its 2025 feasibility study.

Shares of Vizsla were up 2% in premarket activity Tuesday.