Solaris Enters into US$200 Million Financing Agreements with Royal Gold to Advance the Warintza Project
Solaris Resources (NYSE: SLSR) has secured a US$200 million non-dilutive financing package from Royal Gold to advance its Warintza copper project. The package consists of a gold stream and NSR royalty, with US$100 million available immediately. The funding will be distributed in three tranches: US$100M upfront, US$50M after Pre-Feasibility Study publication and Environmental Impact Assessment approval, and US$50M one year after closing.
The agreement includes a gold stream of 20 ounces per 1M pounds of copper produced, with Royal Gold paying 20% of spot price until 90,000 ounces delivery and 60% thereafter. Additionally, a 0.3% NSR royalty (increasable to 0.6%) applies to metal production. The package provides flexibility for change-of-control scenarios and maintains strategic optionality for future project financing.
Solaris Resources (NYSE: SLSR) ha ottenuto un pacchetto di finanziamento non diluitivo da 200 milioni di dollari da Royal Gold per sviluppare il progetto di rame Warintza. Il pacchetto comprende uno streaming sull'oro e una royalty NSR, con 100 milioni di dollari disponibili immediatamente. Il finanziamento sarà erogato in tre tranche: 100 milioni di dollari iniziali, 50 milioni dopo la pubblicazione dello Studio di Prefattibilità e l'approvazione della Valutazione d'Impatto Ambientale, e 50 milioni un anno dopo la chiusura.
L'accordo prevede uno streaming di 20 once d'oro per ogni milione di libbre di rame prodotte, con Royal Gold che pagherà il 20% del prezzo spot fino alla consegna di 90.000 once e il 60% successivamente. Inoltre, si applica una royalty NSR dello 0,3% (incrementabile fino allo 0,6%) sulla produzione di metalli. Il pacchetto offre flessibilità in caso di cambi di controllo e mantiene opzioni strategiche per futuri finanziamenti del progetto.
Solaris Resources (NYSE: SLSR) ha asegurado un paquete de financiamiento no dilutivo de 200 millones de dólares por parte de Royal Gold para avanzar en su proyecto de cobre Warintza. El paquete consiste en un stream de oro y una regalía NSR, con 100 millones de dólares disponibles de inmediato. Los fondos se distribuirán en tres tramos: 100 millones iniciales, 50 millones tras la publicación del Estudio de Prefactibilidad y la aprobación de la Evaluación de Impacto Ambiental, y 50 millones un año después del cierre.
El acuerdo incluye un stream de 20 onzas de oro por cada millón de libras de cobre producido, con Royal Gold pagando el 20% del precio spot hasta la entrega de 90,000 onzas y el 60% después. Además, se aplica una regalía NSR del 0,3% (aumentable hasta 0,6%) sobre la producción de metales. El paquete brinda flexibilidad para escenarios de cambio de control y mantiene opciones estratégicas para financiamiento futuro del proyecto.
Solaris Resources (NYSE: SLSR)는 Warintza 구리 프로젝트를 추진하기 위해 Royal Gold로부터 2억 달러 규모의 비희석성 자금 조달 패키지를 확보했습니다. 이 패키지는 금 스트림과 NSR 로열티로 구성되며, 즉시 사용 가능한 1억 달러가 포함되어 있습니다. 자금은 세 차례에 걸쳐 분배됩니다: 초기 1억 달러, 예비 타당성 조사 발표 및 환경 영향 평가 승인 후 5천만 달러, 그리고 종료 1년 후 5천만 달러입니다.
계약에는 생산되는 구리 100만 파운드당 20온스의 금 스트림이 포함되며, Royal Gold는 9만 온스까지 현물 가격의 20%를 지불하고 이후에는 60%를 지불합니다. 또한 금속 생산에 대해 0.3%(최대 0.6%까지 증가 가능)의 NSR 로열티가 적용됩니다. 이 패키지는 경영권 변경 시나리오에 대한 유연성을 제공하며 향후 프로젝트 자금 조달을 위한 전략적 선택권을 유지합니다.
Solaris Resources (NYSE: SLSR) a obtenu un financement non dilutif de 200 millions de dollars de Royal Gold pour faire avancer son projet de cuivre Warintza. Ce financement comprend un streaming d'or et une redevance NSR, avec 100 millions de dollars disponibles immédiatement. Les fonds seront versés en trois tranches : 100 millions à la signature, 50 millions après la publication de l'étude de préfaisabilité et l'approbation de l'évaluation environnementale, puis 50 millions un an après la clôture.
L'accord prévoit un streaming de 20 onces d'or par million de livres de cuivre produites, Royal Gold payant 20 % du prix au comptant jusqu'à la livraison de 90 000 onces, puis 60 % ensuite. De plus, une redevance NSR de 0,3 % (pouvant aller jusqu'à 0,6 %) s'applique à la production métallique. Ce financement offre une flexibilité en cas de changement de contrôle et maintient des options stratégiques pour un financement futur du projet.
Solaris Resources (NYSE: SLSR) hat eine nicht verwässernde Finanzierungsvereinbarung über 200 Millionen US-Dollar mit Royal Gold gesichert, um sein Kupferprojekt Warintza voranzutreiben. Das Paket besteht aus einem Gold-Streaming und einer NSR-Royalty, wobei 100 Millionen US-Dollar sofort verfügbar sind. Die Finanzierung wird in drei Tranchen ausgezahlt: 100 Mio. US-Dollar sofort, 50 Mio. nach Veröffentlichung der Vorstudie und Genehmigung der Umweltverträglichkeitsprüfung sowie 50 Mio. ein Jahr nach Abschluss.
Die Vereinbarung umfasst einen Gold-Stream von 20 Unzen pro 1 Million Pfund Kupferproduktion, wobei Royal Gold 20 % des Spotpreises bis zur Lieferung von 90.000 Unzen zahlt und danach 60 %. Zusätzlich gilt eine NSR-Royalty von 0,3 % (erhöhbar auf 0,6 %) auf die Metallproduktion. Das Paket bietet Flexibilität bei Kontrollwechsel-Szenarien und bewahrt strategische Optionen für zukünftige Projektfinanzierungen.
- Non-dilutive US$200M funding secured with immediate access to US$100M
- Stream expected to represent only a small percentage of gold over mine life
- Funding sufficient to advance project through final investment decision
- Change of control provision allows termination without penalties
- Maintains flexibility for future project financing
- Retains exposure to exploration upside potential in the broader district
- Commitment of future gold production through streaming agreement
- Addition of 0.3-0.6% NSR royalty on metal production
- Requires repayment of existing Senior Debt facility from proceeds
Insights
A $200M non-dilutive Royal Gold financing package significantly derisks Solaris's Warintza copper project while maintaining future strategic flexibility.
This US$200 million financing package represents a significant achievement for Solaris Resources, providing much-needed capital without diluting existing shareholders. The structure combines a gold stream and NSR royalty with several strategic advantages. The immediate availability of $100 million provides crucial liquidity to repay existing senior debt while funding ongoing project development through to final investment decision.
The gold stream component is particularly favorable - at just 20 ounces per million pounds of copper produced, this represents a minimal percentage of the project's future gold production. The progressive purchase price structure (20% of spot price initially, rising to 60% after 90,000 ounces) provides early capital efficiency while improving economics in later years.
The modest 0.3% NSR royalty (potentially rising to maximum 0.6%) maintains the robust economics of this tier-1 copper asset. Most importantly, the carefully defined area of interest restrictions keep much of the company's 260km² exploration portfolio unencumbered, preserving significant upside potential.
The change-of-control provision creates valuable strategic optionality - with no termination penalties if a takeover occurs within five years, Solaris maintains flexibility for potential future transactions that could maximize shareholder value. This unusual feature suggests management's confidence in the project's attractiveness to potential acquirers.
Royal Gold's willingness to subordinate its position to future project financing maintains Solaris's flexibility in structuring the much larger capital package that will eventually be needed for full construction. This transaction follows a "competitive and comprehensive process" with "numerous compelling proposals," indicating strong market validation of the project's fundamentals.
While development milestones including PFS completion, environmental permitting, and updated resource estimates remain ahead, this financing package substantially derisks Solaris's path forward at Warintza without compromising future strategic options.
HIGHLIGHTS:
- Non-dilutive US
$200 million funding package from Royal Gold, comprising a gold stream and NSR royalty, US$100 million of which is available immediately - The package provides the funding required to repay the Senior Debt facility and is expected to provide the necessary liquidity to fund all value accretive derisking activities through to a final investment decision
- Stream expected to represent a small percentage of the gold over the life of mine which, together with the modest NSR royalty, reinforces Warintza’s position as a multi-generational tier 1 copper project following significant due diligence and financial commitment on accretive terms providing a robust reflection of the potential scale, economics and stage of development
- Stream termination provision contains no penalties under a change-of-control scenario, providing the Company flexibility to enhance shareholder value going forward
- Maintained strategic optionality around future project financing
- Funding package restricted to Warintza cluster thus retaining exposure to significant exploration upside potential with commercial optionality around high-priority targets within the Warintza district
QUITO, Ecuador, May 21, 2025 (GLOBE NEWSWIRE) -- Solaris Resources Inc. (“Solaris” or the “Company”) (TSX: SLS; NYSE: SLSR) is pleased to announce that it has entered into a US
The Financing Agreements provide the Company with long-term liquidity required to fund all value accretive, derisking activities through to a final investment decision (“FID”), in addition to paying off the senior secured debt facility with Orion Mine Finance Management LP (the “Senior Debt facility”). The structure of the Financing Agreements aligns with Solaris’ strategy of maximizing shareholder value through non-dilutive means on highly accretive terms, underpinning the position of the Company’s Warintza project (the “Project” or “Warintza”) as a tier 1 copper asset.
Matthew Rowlinson, President and CEO of Solaris, commented: “This transaction is a clear endorsement of the potential scale, geological qualities and its near surface nature, economics and stage of development of Warintza, one of the few remaining near-term, globally significant copper development opportunities not controlled by a major. Further, it’s a reflection of the strong investor confidence in Ecuador as a mining jurisdiction, supported by the government’s commitment to the sector as a pillar of long-term economic development. The Stream is expected to represent a small percentage of the gold over the life of mine and together with the Royalty, enables the Company to maintain the project’s strategic flexibility. Through partnering with Royal Gold, a leader in the precious metals streaming and royalty space, this has not only brought very competitive cost of capital to the table, but a valued strategic relationship. We are proud of our team for executing a process that brought in a high-quality partner on accretive terms and we look forward to a long and successful partnership with Royal Gold, continuing to deliver on our commitment to unlocking value for all stakeholders.”
Richard Warke, Non-Executive Chairman of Solaris, commented: “Congratulations to the management team for successfully securing a funding package that marks a major milestone in Warintza’s development. This financing structure provides Solaris with long-term liquidity while maintaining corporate flexibility going forward, allowing the Company to fully enhance shareholder value. Their swift efforts have positioned us for growth without foreseeable share dilution — a key win for our shareholders. This progress builds on the historic work performed that laid the foundation for Warintza’s transformation into a world-class, global scale multi-generational copper asset.”
DETAILS OF THE FINANCING AGREEMENTS
Upfront Consideration
Royal Gold will pay Solaris a total cash consideration of US
- First tranche of US
$100 million upon close of the transaction (funds available immediately as signing and close are concurrent). - Second tranche of US
$50 million made available following the publication of the Pre-Feasibility Study (“PFS”) and receipt of the Environmental Impact Assessment technical approval (“EIA”). - Third tranche of US
$50 million made available on the first anniversary of the closing date and completion of all filings necessary to fully perfect Royal Gold’s security.
Closing of the second and third tranches will be subject to other customary conditions.
Proceeds from the Financing Agreements will be utilised to complete technical studies, permitting activities, early infrastructure development, the repayment of the Company’s Senior Debt facility, some district exploration activities and general working capital requirements, and fully-fund the Company through to a FID.
Stream
- Royal Gold will receive gold deliveries equivalent to 20 ounces per 1 million pounds of copper produced from the RGLD Gold AOI (“Stream AOI”) (Figure 1 – area demarked with the pink boundary), which is expected to represent only a small percentage of the gold over the life of mine.
- For each ounce of gold delivered under the Stream, Royal Gold will pay Solaris a purchase price equal to:
20% of spot price until 90,000 ounces have been delivered; and60% of spot price thereafter.
Royalty
- Royal Gold will receive a
0.3% net smelter return royalty on all metal production from the RGLD Gold Expanded AOI (“Expanded AOI”) (Figure 1 – area demarked with the blue boundary). - The Royalty will increase annually by
0.0375% , up to a maximum of0.6% , until the earlier of:- the first delivery of gold under the Stream; or
- eight years following the closing date.
Area of Interest
Stream
The Stream AOI is limited to a small area surrounding the mineral resource (Figure 1 – area demarked with the pink boundary) resulting in Solaris retaining significant exploration upside, unencumbered by the Stream. If the Project does not enter commercial production within eight years, and the first delivery under the Stream has not occurred, the area of interest for the Stream will increase to the Expanded AOI (Figure 1 – area demarked with the blue boundary).
Royalty
The Royalty will apply to all metal production from within the Expanded AOI, demarked by the blue boundary in Figure 1. If upon a change of control transaction, Royal Gold exercises its right to terminate the Stream (further details below), the area of interest on the Royalty will be reduced to the Stream AOI, demarked by the pink boundary in Figure 1.
Figure 1
The construct of the area of interest ensures that Solaris retains exposure to the potential of significant exploration upside with commercial optionality around high-priority targets within the Expanded AOI.
Solaris retains the ability to spin out non-core properties at any time within the Expanded AOI (excluding the Stream AOI) and in such instance a royalty would immediately attach to the spin-out properties at a rate of
Change of Control (“CoC”) Provision
If a CoC transaction occurs within five years of closing, or prior to the first delivery under the Stream (whichever is earlier), either party may elect to terminate the Stream and return all advance payments without penalty. Under a CoC, the Royalty would remain in place and, under certain circumstances, automatically increase to
Other Considerations
Royal Gold has pledged to financially support the Company’s environmental and social programmes, reflecting their commitment to sustainable development and social responsibility. This aligns with the Company’s belief that sustainable mining is not just an economic endeavour; it is a journey that must include the insights and values of every stakeholder involved, especially our indigenous populations, embracing an open dialogue and partnership rooted in trust, understanding, and mutual respect.
The transaction has been structured in a manner that contemplates the Stream and Royalty being subordinated to any future project financing, thereby retaining strategic flexibility around any future project development financing.
NEXT STEPS
As described, the Financing Agreements provide sufficient liquidity to fund the Company’s activities through to an FID. Before then, the Company expects to conclude and publish the PFS, led by Ausenco, Knight Piésold and AMC, in Q3 2025. Work will then transition into the Bankable Feasibility Study.
In parallel, the Company is advancing the technical review of the EIA in collaboration with Ecuador’s Ministries of Energy and Mines and Environment, with approval on target for mid-2025. All the project exploitation permits are expected by mid-year 2026. The recent re-election of President Daniel Noboa has provided political continuity in the country and reinforces the supportive policy environment that has enabled Solaris to maintain progress on permitting and stakeholder engagement to date.
Following the completion of over 82,000 metres of infill drilling between January 2024 and February 2025, an updated Mineral Resource Estimate (“MRE”) is expected to be published in Q3 2025. Further, Solaris is simultaneously working to unlock value across its broader
In addition to the above, the Company will use funds to repay its Senior Debt facility.
On behalf of the Board of Solaris Resources Inc.
“Matthew Rowlinson”
President & CEO, Director
For Further Information
Patrick Chambers, VP Investor Relations
Email: pchambers@solarisresources.com
Advisors
BMO Capital Markets is acting as financial advisor to Solaris Resources. Blake, Cassels & Graydon LLP is acting as legal advisor.
About Solaris Resources Inc.
Solaris is a copper-gold exploration and development company, committed to a sustainable future by empowering communities and stakeholders through our dedication to participatory and responsible mining. The Warintza Project, a large copper-gold porphyry deposit, is a unique, global scale and multigenerational asset located in the low capital intensity district of southeast Ecuador. The Company also owns a series of grassroot exploration projects with discovery potential in Peru and Chile and a
Cautionary Notes and Forward-looking Statements
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will” and “expected” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding: the Company’s future exploration plans, growth or value; the ability of the Company to satisfy commercial closing conditions under the Financing Agreements; the timing, benefits, impact, structure and completion of the transactions contemplated under or in connection with the Financing Agreements, including whether each tranche will be consummated; the use of and sufficiency of proceeds to fund the Company’s derisking activities through to its FID; the timeline for the Company reaching an FID with respect to the Warintza Project; the completion of the PFS, updated MRE and Bankable Feasibility Study, and the receipt of all regulatory approvals for the EIA and project exploitation permits, in each case, on the timelines contemplated herein, if at all; potential future project development financing; the anticipated positive impact on mineral projects in Ecuador as a result of the re-election of President Daniel Noboa; and expectations for other economic, business and/or competitive factors. The Company has based these forward-looking statements and information on the Company’s current expectations and assumptions about future events including assumptions regarding: the exploration and regional programs; the long-term asset potential of Warintza; the continuance of the government’s support of and commitment to the mining sector in Ecuador; the present and future business strategies of the Company and the environment in which Solaris will operate in the future, including the receipt of all required permits and approvals to advance the Warintza Project; and anticipated costs. Although Solaris believes that the assumptions and expectations reflected in such forward-looking statements and/or information are reasonable, readers are cautioned that actual results may vary from the forward-looking statements. Forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including, among other things: the potential for the Company to fail to fulfil commercial conditions under the Financing Agreements; risks related to the Company’s mining operations, including risks related to international operations, government and environmental regulation, and the receipt of all necessary permits and regulatory approvals required to continue to advance the Warintza Project; market conditions; the global economic climate; exploration risk; currency and interest rate fluctuations; and the other risks, uncertainties and other factors identified in the Solaris Management’s Discussion and Analysis for the year ended December 31, 2024 and Annual Information Form for the year ended December 31, 2024, each of which are available at www.sedarplus.ca. Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Solaris does not undertake any obligation to publicly update or revise any of these forward-looking statements except as may be required by applicable securities laws.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1f76eace-efec-4e94-91b3-ecab9e5d5543
FAQ
What is the size of Solaris Resources' (SLSR) financing agreement with Royal Gold?
How will the US$200M financing be distributed to Solaris Resources?
What are the terms of the gold stream agreement between Solaris and Royal Gold?
What is the royalty rate in the Solaris-Royal Gold agreement?
How will Solaris Resources use the US$200M financing proceeds?
