Solaris and Government of Ecuador Sign Investment Contract for Warintza Project, Securing Investment Protections, Regulatory and Fiscal Stability, and Tax Incentives
Rhea-AI Summary
Solaris Resources Inc (OTCQB: SLSSF) announced the signing of an Investment Contract with the Government of Ecuador for the Warintza Project. This contract, which ratifies the previously announced Investment Protection Agreement, enhances project stability and offers new tax incentives, reducing the income tax rate from 25% to 20% and providing exemptions from various taxes. The project is positioned to benefit significantly from these developments, which provide a stable regulatory environment and support from local communities, ensuring long-term profitability.
Positive
- Signing of the Investment Contract secures a stable regulatory and fiscal framework for the Warintza Project.
- Reduction of income tax from 25% to 20% enhances returns on the project.
- Exemptions from capital outflow tax and import duties promote investment appeal.
Negative
- None.
News Market Reaction – SLSSF
On the day this news was published, SLSSF declined 0.98%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, British Columbia, Dec. 22, 2022 (GLOBE NEWSWIRE) -- Solaris Resources Inc. (TSX: SLS; OTCQB: SLSSF) (“Solaris” or “the Company”) is pleased to announce that Solaris and the Government of Ecuador have signed the Investment Contract for the Warintza Project (“Warintza” or “the Project”) in southeastern Ecuador, which ratifies the Investment Protection Agreement (“IPA”) previously announced on June 9, 2022.
Mr. Daniel Earle, President & CEO, commented: “We are very grateful to the Government of Ecuador and our host communities for their support in reaching this major milestone. The Investment Contract provides a foundation of certainty, significantly de-risking the Warintza Project by securing a stable regulatory and fiscal framework with international legal protections for the Project while also enhancing its returns through permanent new tax incentives.”
Highlights
The Investment Contract provides for the following protections and incentives for the duration of the title of the Project which extends with renewal to 2066:
- Security of investment
- Stability of mining law
- Stability of taxes at a reduced income tax rate of
20% (25% previously) - Exemption from capital outflow tax (
5% previously) - Exemption from import duties (up to
5% previously) - Detailed procedures for dispute resolution and international arbitration protection
Mr. Julio José Prado, Minister of Production, Foreign Trade, Investment, and Fisheries of the Government of Ecuador, stated, “I want to thank Solaris for the commitment with the country and with Morona Santiago, it is an example of sustainable mining, responsible with the environment and the communities. Since the first contacts in the Ecuador Open for Business event, we have worked for a year and today we signed the Investment Contract. The Warintza Project has a very important influence, and they are working with the community in an exemplary manner; this will allow more development and prosperity for the zone and for Ecuador.”
Mr. Fernando Santos Alvite, Minister of Energy and Mines of the Government of Ecuador, stated, "I wish the best of success to the Warintza Project. This is a very important project for the country in terms of scale and investment. It is also important for what it represents, which is a great commitment and understanding between the communities and the Company.”
Mr. Vicente Tsakimp, Lead Coordinator of the Warintza Project Strategic Alliance, stated, “The Warints and Yawi Shuar Centers are glad that the Warintza Project is advancing and that we are part of it. Our work and coordination with the Company are an example that participatory mining can be done, and we are proud of everything we have achieved.”
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 a multi-asset exploration company, advancing a portfolio of copper and gold assets in the Americas, which includes: its primary focus, a world class large-scale resource with expansion and discovery potential at the Warintza Project in Ecuador; discovery potential at its Ricardo Project and optioned and owned grass-roots Tamarugo Project in Chile; discovery potential at its Capricho and Paco Orco projects in Peru; and significant leverage to increasing copper prices through its
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 Investment Contract provides a foundation of certainty, significantly de-risking the Warintza Project by securing a stable regulatory and fiscal framework with international legal protections while also enhancing its returns through permanent new tax incentives, the Investment Contract provides for the following incentives for the duration of the title of the Project which extends to 2066 with renewal: security of investment, stability of mining law, stability of taxes at a reduced income tax rate of
FAQ
What recent contract did Solaris Resources sign regarding the Warintza Project?
What are the tax benefits from the recent Investment Contract for SLSSF?
How does the Investment Contract impact the Warintza Project's stability?
What is the duration of the Investment Contract for Solaris Resources' Warintza Project?
