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Solaris Resources (NYSE:SLSR) -4.3% post-market Tuesday after announcing a bought deal offering of 7.15M common shares for C$4.90/share, with an underwriters option to purchase up to an additional 15% of the offering amount.
Solaris (SLSR) said it plans to use the proceeds to fund an expanded exploration and infill drilling program at its flagship Warintza copper project in Ecuador and enhanced regional exploration activities, including fieldwork on 10 recently awarded exploration concessions, as well as for working capital and general corporate purposes.
The company said earlier it had ended plans to sell a minority stake to China’s Zijin Mining (OTCPK:ZIJMF) because it believe the deal would not meet Canada’s stringent foreign investment standards.
In January, Solaris (SLSR) announced plans to sell a 15% stake to Zijin (OTCPK:ZIJMF) for C$130M to help develop the Warintza project, but the deal needed approval under the Investment Canada Act, which was revamped in late 2022 to bring additional scrutiny on foreign investments in the critical minerals sector.
“That this transaction cannot be completed in a reasonable time frame signals that Canada’s critical minerals policy is counterproductive in relation to foreign assets,” Solaris (SLSR) CEO Daniel Earle said.
