Solaris Resources to Get C$130 Million Investment from Zijin Mining

By Robb M. Stewart

Solaris Resources has lined up a 130 million Canadian dollar ($97.1 million) investment from China's Zijin Mining that will help fund development of the Canadian exploration company's flagship Warintza project in southeastern Ecuador.

Solaris said Thursday the gold-focused mining giant will invest through an affiliate by way of a private placement of shares. Solaris plans to issue almost 28.5 million shares at C$4.55 each, a premium of 14% to the previous day's closing price.

When the placement closes, Zijin will own a roughly 15% stake in Solaris.

Solaris said in addition to advancing the Warintza project, it also will use the proceeds for working capital and general corporate purposes.

With the investment, Zijin will have the right to nominate a member to Solaris's board while it control and at least 5% stake in the Canadian company. The agreement also entitles Zijin participation rights to buy additional securities to maintain a proportional interest in the company.

Solaris, which is developing a portfolio of copper and gold assets in the Americas, earlier this week said it planed to add a stock listing on the NYSE American stock exchange in the first half of the year to meet a demand from U.S. investors. The company is nearing the completion of its second phase of mineral resource drilling at Warintza, which is expected to boost the mineral resource estimate for the project.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 11, 2024 07:19 ET (12:19 GMT)

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