Solaris Resources, a Canadian exploration company, has announced a significant investment of $130 million from renowned mining giant Zijin Mining. The capital injection will be utilized to fuel the development of Solaris’ flagship Warintza project in southeastern Ecuador.
According to Solaris, Zijin will invest in the company through an affiliate by means of a private placement of shares. This investment will see Solaris issue approximately 28.5 million shares at C$4.55 each, representing a premium of 14% compared to the previous day’s closing price.
Upon completion of the placement, Zijin will own a stake of approximately 15% in Solaris. As part of the agreement, Zijin will have the right to nominate a member to Solaris’s board and will maintain control of at least a 5% stake in the Canadian company. Additionally, Zijin will have participation rights to purchase additional securities in order to retain a proportional interest in Solaris.
Aside from advancing the Warintza project, Solaris has stated that the investment will also be allocated towards working capital and general corporate purposes. This infusion of funds will undoubtedly catalyze the company’s progress in furthering its portfolio of copper and gold assets throughout the Americas.
As part of its expansion plans, Solaris aims to secure a stock listing on the NYSE American stock exchange in the first half of the year to cater to the increasing demand from U.S. investors. Notably, Solaris is nearing completion of the second phase of mineral resource drilling at Warintza, which is anticipated to greatly enhance the mineral resource estimate for the project.