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)
Copyright (c) 2024 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now