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Solaris Submits Environmental Impact Assessment for Construction of Warintza; Announces Initial Steps to Emigrate to Ecuador

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Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) has submitted an Environmental Impact Assessment (EIA) for the construction of the Warintza Project in southeastern Ecuador. The EIA, spanning over 3,000 pages, represents more than 3.5 years of work and aligns with international standards. To date, over US$170 million has been invested in the Project, with nearly 100% procurement through Ecuadorean supply chains and 55% from local cantons. The Project employs over 500 people and is a significant job creator in the region.

With this milestone, Solaris will draw the second tranche of US$15 million from its Offtake Credit Facility, maintaining a strong liquidity position of US$84 million. The company is also taking initial steps to emigrate to Ecuador, transitioning its head office to Quito and considering further alignment with local stakeholders and regulators.

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) ha presentato una Valutazione di Impatto Ambientale (VIA) per la costruzione del Progetto Waritza nel sud-est dell'Ecuador. La VIA, che si estende su oltre 3.000 pagine, rappresenta oltre 3,5 anni di lavoro e si conforma agli standard internazionali. Ad oggi, sono stati investiti oltre 170 milioni di dollari nel Progetto, con quasi il 100% degli approvvigionamenti tramite catene di fornitura ecuadoriane e il 55% dai cantoni locali. Il Progetto dà lavoro a oltre 500 persone ed è un importante creatore di posti di lavoro nella regione.

Con questo traguardo, Solaris ritirerà la seconda tranche di 15 milioni di dollari dal suo Impianto di Credito Offtake, mantenendo una posizione di liquidità forte di 84 milioni di dollari. L'azienda sta anche compiendo i primi passi per emigrare in Ecuador, trasferendo la sua sede a Quito e considerando ulteriori allineamenti con gli stakeholder e i regolatori locali.

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) ha presentado una Evaluación de Impacto Ambiental (EIA) para la construcción del Proyecto Warintza en el sureste de Ecuador. La EIA, que abarca más de 3,000 páginas, representa más de 3.5 años de trabajo y está alineada con estándares internacionales. Hasta la fecha, se ha invertido más de 170 millones de dólares en el Proyecto, con casi el 100% de las adquisiciones a través de cadenas de suministro ecuatorianas y el 55% de cantones locales. El Proyecto emplea a más de 500 personas y es un importante generador de empleo en la región.

Con este hito, Solaris retirará la segunda tranche de 15 millones de dólares de su Instalación de Crédito Offtake, manteniendo una sólida posición de liquidez de 84 millones de dólares. La compañía también está dando los primeros pasos para emigrar a Ecuador, trasladando su oficina principal a Quito y considerando una mayor alineación con las partes interesadas y reguladores locales.

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR)는 에콰도르 동남부에 있는 Warintza 프로젝트의 건설을 위한 환경 영향 평가(EIA)를 제출했습니다. 3,000페이지가 넘는 EIA는 3.5년 이상의 작업을 나타내며 국제 기준에 부합합니다. 현재까지 이 프로젝트에는 1억 7천만 달러 이상이 투자되었으며, 거의 100%가 에콰도르 공급망을 통해 조달되고 55%는 지역 자치구에서 조달되었습니다. 이 프로젝트는 500명 이상을 고용하고 있으며 지역의 중요한 일자리 창출원이 되고 있습니다.

이 이정표를 통해 Solaris는 Offtake Credit Facility에서 1500만 달러의 두 번째 분할금 인출을 진행하며, 8400만 달러의 강력한 유동성 위치를 유지하고 있습니다. 회사는 또한 에콰도르로 이주하기 위한 초기 단계를 진행 중이며, 본사를 키토로 이전하고 지역 이해관계자 및 규제 기관과의 추가 협력을 고려하고 있습니다.

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) a soumis une Évaluation d'Impact Environnemental (EIE) pour la construction du Projet Warintza dans le sud-est de l'Équateur. L'EIE, qui s'étend sur plus de 3 000 pages, représente plus de 3,5 années de travail et est conforme aux normes internationales. À ce jour, plus de 170 millions de dollars ont été investis dans le projet, avec presque 100 % des approvisionnements provenant de chaînes d'approvisionnement équatoriennes et 55 % de cantons locaux. Le projet emploie plus de 500 personnes et est un important créateur d'emplois dans la région.

Avec cette étape, Solaris va retirer la deuxième tranche de 15 millions de dollars de son Installation de Crédit Offtake, maintenant une solide position de liquidité de 84 millions de dollars. L'entreprise prend également des mesures initiales pour émigrer en Équateur, déplaçant son siège à Quito et envisageant un alignement supplémentaire avec les parties prenantes et les régulateurs locaux.

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) hat eine Umweltverträglichkeitsprüfung (UVP) für den Bau des Warintza-Projekts im Südosten Ecuadors eingereicht. Die UVP umfasst über 3.000 Seiten und ist das Ergebnis von mehr als 3,5 Jahren Arbeit, die den internationalen Standards entspricht. Bisher wurden über 170 Millionen US-Dollar in das Projekt investiert, wobei fast 100% der Beschaffung über ecuadorianische Lieferketten und 55% aus lokalen Kantonen stammen. Das Projekt beschäftigt über 500 Menschen und ist ein bedeutender Arbeitgeber in der Region.

Mit diesem Meilenstein wird Solaris die zweite Tranche von 15 Millionen US-Dollar aus seiner Offtake-Kreditfazilität abrufen und eine starke Liquiditätsposition von 84 Millionen US-Dollar aufrechterhalten. Das Unternehmen unternimmt auch erste Schritte zur Emigration nach Ecuador, indem es seinen Hauptsitz nach Quito verlegt und eine engere Zusammenarbeit mit lokalen Interessenvertretern und Regulierungsbehörden in Betracht zieht.

Positive
  • Submission of Environmental Impact Assessment for Warintza Project construction
  • US$170 million invested in the Project to date
  • Project employs over 500 people, major job creator in the region
  • Access to US$15 million second tranche from Offtake Credit Facility
  • Strong liquidity position of US$84 million
  • Transitioning head office to Quito, Ecuador for better alignment with local stakeholders
Negative
  • None.

Insights

The submission of a comprehensive 3,000-page Environmental Impact Assessment (EIA) for the Warintza Project marks a significant milestone in Solaris Resources' development plans. This document, compliant with both Ecuadorean regulations and international standards, demonstrates a commitment to responsible mining practices. The involvement of reputable firms like ESSAM, Knight Piésold and Ausenco adds credibility to the assessment.

However, investors should note that EIA approval is not guaranteed. The next critical update is expected in H1/25 with the technical approval. If approved, it could pave the way for construction, potentially accelerating the project's timeline. The alignment with the Equator Principles and IFC Performance Standards may also appeal to ESG-focused investors, potentially broadening the company's investor base.

Solaris' financial position appears solid with the imminent draw of a $15 million second tranche from its Offtake Credit Facility, bringing total available liquidity to $84 million. This financial buffer is important as the company transitions from exploration to potential construction phases.

The $170 million investment to date, with 100% procurement through Ecuadorean supply chains and 55% from local cantons, showcases a significant economic impact. This local economic integration could foster positive relationships with stakeholders, potentially smoothing future operations. However, investors should be aware that construction and operation costs for mining projects often escalate and additional funding may be required in the future.

The political landscape appears favorable for Solaris, with explicit support from key government officials. The endorsements from the Minister of Energy and Mines, Governor of Morona Santiago and Mayor of Limón Indanza signal a welcoming environment for mining investment in Ecuador. This political backing could potentially expedite permitting processes and mitigate regulatory risks.

Solaris' decision to transition its head office to Quito and potentially further align with Ecuador is a strategic move. It demonstrates commitment to the country and could foster closer relationships with local stakeholders and regulators. However, investors should monitor any future changes in Ecuador's political climate or mining regulations, as these could impact project development and operations.

QUITO, Ecuador, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) (“Solaris” or the “Company”) is pleased to report that it has submitted an Environmental Impact Assessment (“EIA”) to the Ministry of Environment, Water and Ecological Transition (“MAATE”) for the construction of the Warintza Project (“Warintza” or “the Project”) in southeastern Ecuador.

The EIA spans over 3,000 pages and represents the culmination of more than three and a half years of dialogue, traditional learning, baseline environmental monitoring, data collection and studies. It is compliant with Ecuadorean regulations, leading international practices, and aligns with the globally recognized Equator Principles framework and Performance Standards on Environmental and Social Sustainability promulgated by the International Finance Corporation.

This report builds on prior permitting, including an EIA and community consultations resulting in the granting of an environmental license for advanced exploration in 2023 which facilitated significant site infrastructure and Project development. To date, over US$170 million¹ has been invested in the Project, with nearly 100% procurement through Ecuadorean supply chains and 55% from local cantons. The Project employs over 500 people and is the only significant source of formal employment available locally and one of the largest job creators in the region.

The EIA was prepared by ESSAM Cía. Ltda. (“ESSAM”), an accredited Ecuadorean environmental consulting firm that has successfully completed several EIAs for mining projects in Ecuador, including the Mirador copper mine 40km south of Warintza, and a series of Environmental Compliance Audits for the Fruta del Norte gold mine south of that. ESSAM used input and technical data prepared by respected international firms, particularly Knight Piésold Consulting, a recognized expert in tailings, waste, water and closure design, and Ausenco, an expert in metallurgical studies and process plant design.

With the successful completion of this milestone, the Company has confirmed with its lender that the second tranche of US$15 million will be drawn on its previously announced Offtake Credit Facility in the coming days and remains well-funded with available liquidity of US$84 million. The next update on permitting is expected with the technical approval of the EIA in H1/25.

Mr. Antonio Goncalves, Minister of Energy and Mines, commented, “The steady progress of the Warintza Project is positive for Ecuador. The Project is advancing in compliance with all legal regulations and will soon generate thousands of jobs and major economic growth in the Province of Morona Santiago. The administration of President Daniel Noboa supports this type of mining Project – one that has the support of the communities in its direct area of influence and is designed to meet high social, environmental, and technical standards.”

Mr. Sixto Cóndor, Governor of Morona Santiago, commented, “Warintza is a project that will bring great opportunities and impetus to the development of the province. Like the Mirador project, which I recently visited, and its positive impacts in Zamora-Chinchipe, Warintza will be an engine for growth in Morona Santiago, with more generation of local employment sources, revitalization of the economy, social benefits, support for entrepreneurship, businesses and local suppliers. With Warintza, we will have a better province, with greater wealth to be distributed and better opportunities. We are ready to move forward.”

Mr. Antonio Castillo, Mayor of Limón Indanza, commented, “The people of Limón Indanza have benefited and will continue to benefit significantly through the creation of local employment and opportunities for the canton's suppliers with the Warintza Project. The communities of Warints and Yawi decided to sign an agreement with the Company, through the Strategic Alliance, for the advancement of the Project and, as a Municipality, we respect and support this decision to work together.”

Mr. Javier Toro, Chief Operating Officer of Solaris, commented, "The submission of the EIA and commencement of permitting for construction is a major milestone for the Warintza Project. We are very grateful to all our supporters, and in particular to our host communities and the Advisory Board of the Strategic Alliance of the Warintza Project who have been integral to the socialization of this EIA, the Mayor of Limón Indanza, the Governor of the Province of Morona Santiago, and the diligent professionals at MAATE.”

Initial Emigration Steps – Solaris is also pleased to announce initial steps towards aligning the Company and its management with stakeholders and regulators in Ecuador as Warintza enters the permitting stage. The Company is transitioning its head office to Quito, Ecuador, where certain of Solaris’ senior management team will work from. Solaris is continuing to evaluate further steps to complete a greater transition to Ecuador. The Company does not currently anticipate that any such further steps will pose adverse tax consequences for the Company or require a change of stock exchange listings.

Endnotes

  1. Refer to Management’s Discussion and Analysis for the six months ended June 30, 2024 on the Company’s website.

On behalf of the Board of Solaris Resources Inc.

“Daniel Earle”
President & CEO, Director

For Further Information

Jacqueline Wagenaar, VP Investor Relations
Direct: 416-366-5678 Ext. 203
Email: jwagenaar@solarisresources.com

About Solaris Resources Inc.

Solaris is advancing a portfolio of copper and gold assets in the Americas, which includes a world class copper resource with expansion and discovery potential at its Warintza Project in Ecuador; a series of grass roots exploration projects with discovery potential in Peru and Chile; and significant leverage to increasing copper prices through its 60% interest in the La Verde joint-venture project with a subsidiary of Teck Resources in Mexico.

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 statements that the second tranche of US$15 million will be drawn on its previously announced Offtake Credit Facility in the coming days and the Company remains well-funded with available liquidity of US$84 million, The next update on permitting is expected with the technical approval of the EIA in H1/25, the Company is transitioning its head office to Quito, Ecuador, where certain of Solaris’ senior management team will work from, Solaris is continuing to evaluate further steps to complete a greater transition to Ecuador, the Company does not currently anticipate that any such further steps will pose adverse tax consequences for the Company or require a change of stock exchange listings. Although Solaris believes that the 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. 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 technical programs, permitting, that further emigration steps will be taken, and steps to emigrate to Ecuador. These 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 with respect to the Company’s future strategic plans, and the risks, uncertainties and other factors identified in the Solaris Management’s Discussion and Analysis, for the year ended December 31, 2023 available at www.sedarplus.ca. 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.


FAQ

What is the current status of Solaris Resources' (NYSE: SLSR) Warintza Project in Ecuador?

Solaris Resources has submitted an Environmental Impact Assessment (EIA) for the construction of the Warintza Project to Ecuador's Ministry of Environment, Water and Ecological Transition. This marks a significant milestone in the project's development and permitting process.

How much has Solaris Resources (NYSE: SLSR) invested in the Warintza Project so far?

To date, Solaris Resources has invested over US$170 million in the Warintza Project, with nearly 100% procurement through Ecuadorean supply chains and 55% from local cantons.

What is the employment impact of Solaris Resources' (NYSE: SLSR) Warintza Project in Ecuador?

The Warintza Project currently employs over 500 people and is the only significant source of formal employment available locally. It is also one of the largest job creators in the region.

What steps is Solaris Resources (NYSE: SLSR) taking to align with Ecuadorian stakeholders?

Solaris Resources is transitioning its head office to Quito, Ecuador, where certain senior management will work from. The company is also evaluating further steps to complete a greater transition to Ecuador, aligning with local stakeholders and regulators.

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