BUENOS AIRES, Argentina – November 21, 2025 – AbraSilver Resource Corp. (TSX.V: ABRA) (OTCQB: ABBRF) has taken a significant stride towards unlocking the full potential of its Diablillos silver-gold project, formally submitting its application for inclusion in Argentina's newly enacted Large Investment Incentive Regime (RIGI). This strategic move is poised to usher in a new era of fiscal stability and competitive advantages for the company, significantly enhancing the project's economic viability and de-risking a major long-term mining venture in the country.
The consideration of Diablillos for RIGI comes at a pivotal time for Argentina, as the nation seeks to attract substantial foreign direct investment into its vast mineral wealth. For AbraSilver, securing RIGI approval is expected to translate into hundreds of millions of dollars in tax and fiscal benefits, accelerating the project's path from advanced exploration to a potential construction decision as early as 2026. This development underscores the Argentine government's commitment to fostering a more predictable and attractive investment climate for large-scale, strategic projects.
A New Horizon for Diablillos: Details of Argentina's RIGI Bid
AbraSilver Resource Corp. formally submitted its application in November 2025 to include its 100%-owned Diablillos silver-gold project under Argentina's RIGI, a federal investment framework enacted on July 8, 2024. The RIGI is designed to attract and expedite large-scale development projects across strategic sectors like mining, energy, and infrastructure, requiring a minimum investment of $200 million. The application window for these benefits spans two years from its enactment, with a possible one-year extension.
A cornerstone of the RIGI is its promise of 30 years of long-term regulatory stability in tax, customs, and foreign exchange matters, shielding investments from future legislative changes. For eligible projects like Diablillos, the benefits are comprehensive: a reduced Corporate Income Tax (CIT) rate of 25% (down from a previous maximum of 35%), a reduced dividend withholding tax, exemption from export duties after a specified period, and exemption from import duties and taxes on new capital goods and spare parts. Additionally, beneficiaries are exempt from VAT on certain investments and gain greater flexibility in foreign exchange, including the gradual lifting of the obligation to repatriate and settle export proceeds. AbraSilver's updated Pre-Feasibility Study (PFS) already incorporates these anticipated RIGI benefits, projecting a 51% increase in the after-tax Net Present Value (NPV) to $747 million and a 13.7% rise in the Internal Rate of Return (IRR) to 27.6% at base case prices. The project is strategically located across Salta and Catamarca provinces, both of which have opted into the RIGI regime, enabling multi-jurisdictional projects like Diablillos to seek its incentives. AbraSilver anticipates a governmental decision on its RIGI application in early 2026, with a potential construction decision for the project targeted for later that year.
Winners and Losers in Argentina's Mining Resurgence
The inclusion of AbraSilver's (TSX.V: ABRA) (OTCQB: ABBRF) Diablillos project in Argentina's RIGI has clear implications for various stakeholders within the mining sector. AbraSilver itself stands as the most direct and significant winner. The enhanced project economics, driven by an estimated US$430 million in reduced taxes, royalties, and export duties, will substantially boost Diablillos' profitability and cash flow. The 30-year fiscal and regulatory stability guaranteed by RIGI will de-risk the project, making it far more attractive for financing and accelerating its development towards production.
Beyond AbraSilver, other large-scale mining companies with significant projects in Argentina are poised to benefit from RIGI. This includes major players like Newmont (NYSE: NEM), AngloGold Ashanti (NYSE: AU), and Pan American Silver (TSX: PAAS) if their existing or planned large projects qualify and are approved. Companies focused on critical minerals for the energy transition, such as copper and lithium, are also major beneficiaries. For instance, McEwen Copper (TSX: MECU) for its Los Azules project and Rincón Mining for its lithium initiatives are either securing or seeking RIGI benefits. The regime is specifically designed to attract new foreign direct investment, potentially drawing in more international players interested in Argentina's rich mineral reserves. Local suppliers, mandated to receive at least 20% of the investment amount under RIGI, will also experience a significant boost, fostering local economic growth and job creation. Royalty holders, such as EMX Royalty Corp. (TSX.V: EMX), which holds a 1% Net Smelter Return (NSR) royalty on Diablillos, will indirectly benefit from the increased viability and production.
Conversely, companies with smaller mining projects that do not meet the RIGI's US$200 million minimum investment threshold may find themselves at a competitive disadvantage. These projects will not qualify for the substantial tax, customs, and foreign exchange benefits, potentially facing higher operating costs and greater regulatory hurdles compared to RIGI-approved ventures. Similarly, companies operating solely under older investment frameworks might find their projects less competitive. Provinces that do not fully align with the RIGI regime or impose higher local royalties could also attract less investment. While the RIGI encourages local content, smaller, less established local suppliers might struggle to meet the demands of large international mining projects, potentially limiting their ability to fully capitalize on the local procurement requirement.
A Broader Shift: RIGI's Impact on the Mining Landscape
The consideration of AbraSilver's Diablillos Project for Argentina's RIGI is more than just a company-specific event; it signals a profound shift in Argentina's approach to foreign investment and its role in the global mining industry. This move aligns with a broader international trend where nations with significant mineral resources are implementing robust incentive regimes to attract capital, particularly for critical minerals essential for the energy transition. Argentina, with its vast, underexplored reserves of silver, gold, copper, and lithium, is strategically positioning itself to become a key player in this global supply chain. The RIGI directly addresses historical deterrents to investment in Argentina, such as political instability, economic volatility, and unpredictable policy changes, by offering institutionalized investment certainty for up to 30 years.
The ripple effects of RIGI's success, exemplified by projects like Diablillos, are expected to be far-reaching. For competitors, RIGI creates a new benchmark for project viability. Companies unable to secure similar benefits for their projects may find themselves at a competitive disadvantage in terms of cost structure and investor appeal. Conversely, the regime's mandatory Local Supplier Development Plan, requiring at least 20% of project investment to be allocated to local businesses, will significantly benefit Argentine enterprises, fostering local economic growth, job creation, and technology transfer within the mining supply chain.
From a regulatory and policy standpoint, the RIGI, enacted as part of Law 27,742 ("Ley de Bases") in mid-2024, is a comprehensive reform. It guarantees 30 years of fiscal stability, a fixed corporate income tax rate of 25%, exemptions from import and export duties, and critical foreign exchange certainty, including the gradual elimination of capital controls. Perhaps most significantly, it provides immediate access to international arbitration for dispute resolution, addressing a long-standing concern for foreign investors. This robust framework aims to elevate Argentina's competitiveness against established mining powerhouses like Chile and Peru, whose effective tax rates for mining projects are now often higher than Argentina's RIGI-enabled 38%. The RIGI's 30-year stability guarantee is touted as unprecedented in Argentina, directly contrasting with the nation's history of policy inconsistency and economic unpredictability.
The Road Ahead: Opportunities and Challenges
For AbraSilver's (TSX.V: ABRA) (OTCQB: ABBRF) Diablillos Project, the short-term outlook is dominated by the anticipated RIGI approval in early 2026, which is expected to catalyze a construction decision later that year. The project's enhanced economics, bolstered by RIGI benefits, position it to become one of the world's top primary silver mines with a projected 14-year mine life. Long-term, the 30-year fiscal stability will support sustained production and potential expansions, while strategic partnerships, such as with Kinross Gold (TSX: K), for regional exploration, offer additional growth avenues.
The broader Argentine mining sector is also poised for significant transformation. The RIGI is expected to drive a "quick influx of investment," with over US$33.8 billion in proposed projects and US$15.7 billion already approved as of October 2025. Argentina aims to increase mining exports fivefold to US$13 billion by 2030, with lithium and copper as key drivers. This focus on large-scale, long-term developments is a strategic pivot, aiming to diversify Argentina's export matrix and establish it as a reliable supplier of critical minerals.
However, significant challenges remain. Despite RIGI's protections, broader macroeconomic instability in Argentina, including inflation and exchange rate pressures, could still impact investor sentiment. Regulatory complexity, stemming from Argentina's federal structure, means provincial autonomy can introduce varied local content requirements or environmental restrictions. Proposed changes to the Glacier Law, aimed at unlocking copper projects, face strong environmental backlash, creating uncertainty. Infrastructure deficiencies in remote mining regions and the need for a consistent "social license to operate" are also ongoing concerns. While RIGI improves the fiscal regime, Argentina's overall tax burden, even at 39%, remains competitive but not the lowest in the region.
The most optimistic scenario sees full RIGI implementation leading to rapid development of projects like Diablillos, with sustained foreign direct investment, exceeding export targets, and significantly boosting Argentina's economy. A moderate scenario envisions RIGI success with lingering challenges, where projects progress but may face delays due to macroeconomic uncertainties or bureaucratic hurdles. A pessimistic scenario, though less likely given current political will, involves RIGI stalling due to opposition or macroeconomic instability, leading to delays or withdrawals of major investments.
Conclusion: A New Era for Argentine Mining
The formal submission of AbraSilver's (TSX.V: ABRA) (OTCQB: ABBRF) Diablillos project for Argentina's Large Investment Incentive Regime marks a pivotal moment, signaling a new era for the country's mining sector. The RIGI, with its unprecedented 30-year fiscal stability, competitive tax rates, and foreign exchange flexibility, is a powerful tool designed to unlock Argentina's vast mineral wealth and attract the substantial foreign direct investment needed for large-scale projects. For AbraSilver, securing RIGI approval would be a transformative event, significantly de-risking the Diablillos project and paving a clearer, more profitable path toward development and production. The estimated US$430 million in reduced taxes and duties underscores the profound impact this regime can have on project economics.
Moving forward, the market will closely assess the consistent implementation of RIGI and its ability to translate policy commitments into tangible economic growth. The success of projects like Diablillos will be crucial in validating RIGI's effectiveness and its potential to establish Argentina as a reliable and attractive destination for mining capital. This initiative has the potential to not only boost mineral exports but also create significant employment and foster local economic development.
Investors should closely monitor several key catalysts in the coming months. The most immediate will be the governmental decision on AbraSilver's RIGI application, anticipated in early 2026. This will be followed by the completion of the Definitive Feasibility Study (DFS) for Diablillos, expected in the first half of 2026, which will provide more granular economic details. A subsequent construction decision, targeted for 2026, will be a major indicator of progress. Beyond company-specific developments, investors should also watch the broader Argentine macroeconomic and political stability, the progress of other major RIGI-approved projects, and global precious metal price trends, which will continue to influence long-term profitability. The RIGI represents a bold step for Argentina, and its success will shape the future of its mining industry for decades to come.
This content is intended for informational purposes only and is not financial advice
