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Highlights

  • US$200 million raised via gold stream and royalty agreement with Royal Gold
  • Proceeds to retire existing Orion senior debt and fund project development to FID
  • Non-dilutive financing preserves shareholder equity and corporate flexibility

Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) has entered into a US$200 million financing agreement with RGLD Gold AG, a subsidiary of Royal Gold, Inc. The deal comprises a gold stream and a net smelter return royalty, intended to fund the company’s Warintza copper project in Ecuador and eliminate its senior secured debt facility with Orion Mine Finance.

The financing package emerged from a competitive bidding process involving multiple third-party proposals. Solaris emphasizes that the transaction ensures long-term liquidity through the final investment decision (FID) stage without issuing new shares — a key consideration for maintaining shareholder value amid a volatile capital markets environment.

According to company statements, the gold stream will cover a small percentage of the mine's gold output over its life, while the royalty aligns with the project's projected revenues. This structure is expected to maintain Solaris’ strategic control of Warintza, a project the company describes as a high-grade, near-surface copper resource.

The deal also signifies increasing institutional confidence in Ecuador’s mining sector, supported by recent governmental policies aimed at bolstering economic growth through resource development.

By eliminating its senior debt obligations and securing flexible, long-term funding, Solaris now positions itself to complete all necessary de-risking activities, including technical, permitting, and community engagement work, en route to potential mine construction.

Solaris' partnership with Royal Gold, a major player in precious metals financing, is framed as a strategic step to advance the Warintza project without shareholder dilution. While management has framed the financing as beneficial, investors will be watching closely for milestones leading up to FID and the realization of project economics.