Chinese company Zijin Mining signs deal to invest $130M in Solaris Resources

VANCOUVER — A Chinese company has signed a deal to invest $130 million in Solaris Resources Inc. that it plans to use to fund the development of its Warintza copper project in Ecuador.

Zijin Mining Group Co. Ltd. will own about a 15 per cent stake in Solaris once the private placement of nearly 28.5 million shares at a price of $4.55 per share closes.

The investment is subject to customary conditions including regulatory approval under the Investment Canada Act.

Under the deal, Zijin will be allowed to nominate a member to the Solaris board as long as it owns, controls or directs at least a five per cent stake in the company. 

The agreement also entitles Zijin to buy additional shares in certain circumstances to maintain its proportionate stake in Solaris.

In addition to Warintza, Solaris has projects in Chile, Peru and Mexico.

This report by The Canadian Press was first published Jan. 11, 2024.

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The Canadian Press