China's Zijin Mining takes 15% stake in Canada's Solaris

Solaris Resources

11/01/2024 20:15

Jan 11 (Reuters) - Chinese mining firm Zijin Mining
Group  601899.SS  will acquire a 15% stake in Solaris Resources
 SLS.TO  for about C$130 million ($96.99 million), the Canadian
miner said on Thursday.
    The deal is the first investment by a Chinese miner since
November 2022, when Canada ordered three Chinese companies to
divest their investments in Canadian critical minerals, citing
national security.
    Under the terms of the agreement, Solaris will issue about
28.5 million shares at C$4.55 per share to a unit of Zijin,
representing a 14% premium to the stock's close on Wednesday. 
    Shares of Solaris were up more than 5% on Thursday.
    The deal would also permit Zijin to nominate a member to the
Solaris board for as long as the Chinese firm held at least a 5%
stake.
    Solaris said it would use the proceeds of the transaction
for the development of its Warintza copper-gold project in
Ecuador.
     
($1 = 1.3404 Canadian dollars)

 (Reporting by Kabir Dweit; Editing by Shailesh Kuber)
 ((Kabir.Dweit@thomsonreuters.com;))