VANCOUVER, British Columbia, May 21, 2024 (GLOBE NEWSWIRE) — Solaris Resources Co., Ltd.. (TSX: SLS; NYSE: SLSR) (“Solaris” or the “Company”) has voluntarily made a previously announced minority investment to support the growth of the Warintza project (“Warintza” or the “Project”). We would like to announce that we will be ending the event. Ecuador includes the potential for large-scale purchases of adjacent assets. After a four-month review by Canadian regulators in a changing environment, approval was not granted and the transaction no longer properly reflects market value. The Company continues to have an additional US$40 million of funding available through the offtake financing package announced in December for the 2024 and 2025 Warintza baseline program and key deliverables. We will pursue a focused strategy that maximizes long-term shareholder value through enhanced strategic flexibility.
summary
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Solaris announces voluntary termination of minority investment aimed at supporting expansion of activities in Warinca, including potential large-scale purchase of adjacent assets
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The deal was priced at a 14% premium, but Solaris stock has risen more than 35% in the four months since its announcement, and the deal no longer properly reflects market value.
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Despite the strong gains, Solaris stock has underperformed its peers in the sector’s recent gains as regulatory uncertainty in Canada has become more pronounced in an environment of heightened domestic political sensitivity.
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Because this transaction is a minority investment, involves assets outside of Canada, and the proceeds will be used to expand Canada’s interests in critical minerals, the parties are seeking regulatory approval within the current four-month period. We expect it to be approved.
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The inability to complete the transaction within a reasonable period of time, regulatory uncertainty remaining, and unattractive pricing in market conditions would be unfair to our stockholders and investors.
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In addition, the company is pursuing a recently acquired option to acquire approximately 40,000 hectares adjacent to Warintsa, and is conducting field investigations at a target with similar geological and ‘target’ geophysical characteristics to the Warintsa Cluster. is already in progress (see release April 30, 2024)
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The Company continues to fund the Warintza baseline program and key deliverables in 2024 and 2025, with an additional US$40 million available through an offtake financing package announced in December.
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The company has reiterated the timetable for the Warinca project, stating that the environmental impact assessment will be carried out in the second half of 2024 and the pre-feasibility study will be carried out in the second half of 2025.
Daniel Earl, President and CEO, commented: “This transaction was a minority equity investment from a well-known and well-respected publicly traded foreign company, the proceeds of which were intended to be used for the growth of the company’s principals in a Canadian-controlled foreign jurisdiction. The inability to complete this transaction within a reasonable timeframe indicates that Canada’s critical minerals policy is counterproductive with regard to overseas assets. We intend to develop a strategy focused on risk mitigation and strengthen strategic flexibility to maximize long-term shareholder value.”
Qualified person
The scientific and technical content of this press release has been reviewed and reviewed by Jorge Fierro, MSc, DIC, PG, Vice President of Solaris Exploration, who is a “Qualified Person” as defined in National Instrument 43-101. Approved. Mineral Project Disclosure Standards. Jorge Fierro is a professional geologist registered with SME (registered member number 4279075).
On behalf of the Board of Directors of Solaris Resources Inc.
“Daniel Earl”
President and CEO
For more information
Jacqueline Wagenaar, Vice President of Investor Relations
Direct: 416-366-5678 extension 203
Email: jwagenaar@solarisresources.com
About Solaris Resources Co., Ltd.
Solaris is pursuing a portfolio of copper and gold assets in the Americas, including a world-class copper resource with expansion and discovery potential at the Huarinza project in Ecuador. A series of grassroots exploration projects with discovery potential in Peru and Chile. It also has a significant influence on the rise in copper prices through its 60% interest in the La Verde joint venture project with a subsidiary of Mexico’s Teck Resources.
Cautionary statements and forward-looking statements
This document contains certain forward-looking information.Forward-looking statements within the meaning of applicable securities laws (collectively, “forward-looking statements”).Use of The word “will” and The words “anticipated” and similar expressions are intended to identify forward-looking statements. These statements include the Company continuing to fund the Warintza baseline program in 2024 and 2025 with an additional US$40 million available through the offtake financing package announced in December. , includes a statement that the Company will pursue and deliver a focused strategy that maximizes long-term shareholder value through enhanced strategies. The company reiterated the schedule for the Warinca project, saying the environmental impact assessment is expected to be carried out in the second half of 2024 and the pre-feasibility study in the second half of 2025.The company will acquire approximately 40,000 hectares adjacent to Warinca. We are pursuing the recently acquired option of doing so. , fieldwork is already underway at a target with similar geological and ‘target’ geophysical characteristics to the Warinca Cluster. Although Solaris believes that the expectations reflected in such forward-looking statements and/or information are reasonable, readers should be advised that actual results may differ from those in the forward-looking statements. Please note in particular. The Company believes that these forward-looking statements and information are based on the Company’s current expectations and assumptions regarding future events, including assumptions regarding baseline programs and funding in 2024 and 2025, and the remaining US$40 million. All the conditions necessary to withdraw the offtake funds will be obtained. , the remaining USD 40 million offtake financing has been completed, EIA, PFS has been completed and de-risking of the Warintsa project will be completed by 2026. These statements also involve known and unknown risks, uncertainties and other factors that may cause actual outcomes or results. anticipated in such forward-looking statements, including risks, uncertainties and other factors identified in Solaris management’s discussion and analysis for the year ended December 31, 2023 available at www.sedarplus.ca A very different event. Further, the forward-looking statements contained in this news release are made as of the date of this news release, and except as required by applicable securities laws, Solaris does not warrant any forward-looking statements made as of the date of this news release. We undertake no obligation to publicly update or correct any descriptions. .
