Zijin Mining Plans To Invest 690 Million Yuan in Solaris Resources To Promote The Development Of Ecuador Copper Project

On the evening of January 11, Zijin Mining Group Co., Ltd. announced that JINLONG (SINGAPORE) MINING PTE. LTD. (hereinafter referred to as "Golden Dragon Company"), a wholly owned subsidiary of Singapore, entered into a transaction with Solaris Resources Inc. (hereinafter referred to as "Solaris"), which is listed on the Toronto Stock Exchange, on January 11, 2024 Beijing Time. Stock Code: SLS) entered into a Share Subscription Agreement whereby Golden Dragon will subscribe for 28,481,289 ordinary shares issued by Solaris in a private placement at a price of C $4.55 / share for a total transaction price of C $129,589,864.95 (approximately RMB 690.09 million). Upon completion of the Subscription, Zijin Mining, through Golden Dragon, will hold 15% of the shares of Solaris, becoming its second largest shareholder, with the right to nominate a director, provided that the shareholding is not less than 5%, based on the central parity rate of RMB 1 Canadian dollar to RMB 5.3252 yuan published by the China Foreign Exchange Trade System on January 11, 2024. And when Solaris issues new shares, it enjoys the right to participate in the subscription to maintain the shareholding ratio.
Solaris is a mining company focused on the exploration and development of mineral resources, founded in June 2018, headquartered in Vancouver, Canada, with exploration assets in Ecuador, Mexico, Chile and other places; Among them, the Warintza (hereinafter referred to as "Valincha") porphyry copper project in Ecuador, in which Solares holds a 100% interest, is its flagship asset, and according to the Share Subscription Agreement, the additional funds will be dedicated to the promotion and development of the Valincha project.
The Valincha project is located in the State of Limon Indanza, Morona Santiago Province, southeast Ecuador, close to the border between Ecuador and Peru, 85 km from the nearest city Cuenca, 355 km from the nearest Pacific port, 20 km west of the national Highway 45. Nearby is the planned 2.4GW Santiago hydropower plant, which will provide electricity for mine operations. The area where the project is located has a tropical rainforest climate with an altitude between 700 and 2300 meters, with an average annual rainfall of about 2,617mm and an average temperature of 22.4℃.