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| Royal Gold Inc. |
Deal Combines Gold Stream and Royalty to Advance One of the World’s Last Major Independent Copper Projects
Solaris Resources has secured a $200-million financing agreement with U.S.-based Royal Gold Inc., marking a significant step toward developing its Warintza copper project in Ecuador.
Announced Wednesday, the deal includes a gold streaming agreement and a net smelter return (NSR) royalty, providing Solaris with non-dilutive capital to repay senior debt and fund derisking efforts ahead of a final investment decision (FID).
Multi-Stage Financing to Support Project Milestones
- $100 million is available immediately.
- $50 million upon completion of a prefeasibility study (PFS) and environmental-impact assessment (EIA) approval.
- A final $50 million is contingent on project progress one year post-closing, subject to standard conditions.
“This transaction is a clear endorsement of Warintza’s scale, near-surface geology, and strong economics,” said Matthew Rowlinson, Solaris President and CEO. “It reflects investor confidence in Ecuador’s growing stature as a mining-friendly jurisdiction.”
Strategic Capital Without Equity Dilution
The gold stream will deliver 20 oz of gold per million pounds of copper from a defined area, with Solaris receiving 20% of spot gold pricing for the first 90,000 ounces and 60% thereafter. A 0.3% NSR royalty begins at closing and escalates by 0.0375% annually, capped at 0.6%, unless deliveries begin earlier.
Solaris emphasized that the gold stream impacts only a small portion of the Warintza district, preserving flexibility and upside across its 260 km² exploration portfolio. Non-core assets spun out by Solaris will be subject to a 1.2% royalty under the terms of the agreement.
Warintza on Track for Major Development Milestones
Solaris plans to release a PFS and updated mineral resource in Q3 2025, following over 82,000 meters of infill drilling. An environmental approval is expected by mid-2025, with project permits targeted for mid-2026. A bankable feasibility study will follow thereafter.
Royal Gold’s Involvement Strengthens Solaris' Capital Profile
“This partnership brings strategic value beyond capital,” Rowlinson said. “Royal Gold is a global leader in royalty and streaming finance, and the structure ensures Solaris retains maximum long-term project flexibility.”
Nonexecutive Chair Richard Warke added, “This is a major milestone for Warintza. The team secured competitive financing with no dilution to shareholders, positioning us for long-term growth.”
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