Solaris Announces $130 Million Strategic Investment by Zijin Mining Group

[cmm3rd]

Dan, how does this affect your valuation?

Solaris Announces $130 Million Strategic Investment by Zijin Mining Group

January 11, 2024 – Vancouver, B.C. – Solaris Resources Inc. (TSX: SLS; OTCQB: SLSSF) (“Solaris” or the “Company”) is pleased to announce that it has entered into a subscription agreement (the “Subscription Agreement”) in respect of an approximately $130 million private placement of common shares of Solaris (“Common Shares”) by an affiliate of Zijin Mining Group Co., Ltd. (“Zijin”) at a subscription price of $4.55 per Common Share (the “Private Placement”).

Highlights

Zijin will invest approximately $130 million by way of a Private Placement of Common Shares.
The Company will issue to an affiliate of Zijin an aggregate of 28,481,289 Common Shares at a subscription price of $4.55 per Common Share, representing a 14% premium to the closing price of the Common Shares on the Toronto Stock Exchange (the “TSX”) on January 10, 2024.
Upon closing of the Private Placement, Zijin will own approximately 15% of the Common Shares on a fully diluted basis.

Mr. Daniel Earle, President & CEO, commented: “Zijin is one of the most successful major mining companies in the world. It boasts an unprecedented track record of growth from its origins operating a single gold mine in the early 1990s to becoming a global major operating in 16 countries with total revenue far in excess of its gold mining peers, including excepted top five-ranked copper production in 2024. We take tremendous pride in announcing our new strategic partnership with Zijin and look forward to leveraging its deep technical expertise and financial capacity in delivering the full potential of one of the last remaining greenfield copper districts at low elevation and adjacent to infrastructure available globally.”

The Company will use the proceeds of the Private Placement for the advancement and development of the Company’s flagship Warintza Project in southeastern Ecuador (“Warintza” or the “Project”) and for working capital and general corporate purposes.

Pursuant to the Subscription Agreement, Zijin will be permitted to nominate a member to the board of directors of the Company for so long as Zijin owns, controls or directs at least 5% of the outstanding Common Shares. In addition, the Subscription Agreement entitles Zijin to participation rights to purchase additional securities in certain circumstances to maintain its proportionate interest in the Company.

Closing of the Private Placement is subject to customary conditions precedent and applicable regulatory approvals, including (i) receipt of the requisite approval of the TSX, (ii) receipt of regulatory approval under the Investment Canada Act, and (iii) receipt of regulatory approval from the relevant authorities in the People’s Republic of China. The Common Shares will be subject to a statutory hold period in accordance with applicable securities laws.

A copy of the Subscription Agreement will be filed on the Company’s profile on SEDAR+ at www.sedarplus.ca. The above description of the terms and conditions of the Subscription Agreement is qualified in its entirety by the full text of the Subscription Agreement. An early warning report will be filed by Zijin in accordance with applicable Canadian securities laws and will be available on SEDAR+ at www.sedarplus.ca.

China International Capital Corporation Hong Kong Securities Limited and Minmetals Securities Co., Ltd acted as Solaris’ transactional advisors in connection with the Private Placement.

All dollar amounts are expressed in Canadian dollars unless indicated otherwise.

On behalf of the Board of Solaris Resources Inc.

[aja57]

Thanks for posting.

Solaris just sold 15% of the company to the CCP and a seat on the board. Has more impact than worrying about valuation. I’m running away and won’t turn my back..

[tlengoc]

Great deal for SLS. SLS needs money like yesterday to advance their prized asset - Warintza. At least the deal didn't go through a bank or a mining royalty something like that where there could be added dilution via warrants or Non-smelter royalties or sell future production at below spot prices.

[aja57]

The CCP is a mining royalty. All over the world.

[ChuckGeb]

I believe their alliance with CCP has doomed the domestic investors. I am looking for a good exit point. Very unfortunate that our current foreign policy is to allow the CCP to garner all of the strategic mineral deposits and farm land in South America and Africa. We on the other hands send all of our treasures to fight wars in Afghanistan and now Ukraine. CCP’s only support of the opposition is to encourage draining our resources.

[tlengoc]

A commodity supercycle will soon be upon us: Gold, Silver and Copper. When metal prices start to breakout will see if SLS stock does move or not. TWT.

[dan_s]

I do not have a valuation for Solaris Resources. Impossible for me to value a mining company with no revenues.