Solaris Closes $54 Million in Financing
Solaris Resources has successfully closed its bought deal equity offering, securing a total of $54 million. The offering, which included the full exercise of the over-allotment option, consisted of 8,222,500 common shares at $4.90 per share, raising $40,290,250. Additionally, a private placement of 2,795,102 common shares at the same price raised $13,696,000. The funds will support an expanded exploration and drilling program at the Warintza Project in Ecuador and other regional exploration activities. The financing was led by National Bank Financial Markets, RBC Capital Markets, and BMO Capital Markets.
- Raised $54 million in total financing.
- Full exercise of the over-allotment option.
- Funds earmarked for expanded exploration and drilling at the Warintza Project.
- Additional funds for regional exploration activities and new concessions.
- Led by reputable financial institutions: National Bank Financial Markets, RBC Capital Markets, and BMO Capital Markets.
- Issuance of new shares may lead to shareholder dilution.
- No registration under the U.S. Securities Act limits potential investor base.
Insights
The recent $54 million financing by Solaris Resources Inc. is a significant event in the financial landscape of the company. The company sold 8,222,500 common shares, including 1,072,500 shares from the over-allotment option, at a price of
From a financial standpoint, the raised funds will be instrumental in supporting the expanded exploration and infill drilling program at their flagship Warintza Project in Ecuador. This strategic use of proceeds aligns with the company's broader objectives of enhancing exploration activities. The offering being led by reputable institutions such as National Bank Financial Markets, RBC Capital Markets and BMO Capital Markets further underlines the credibility and potential of the investment.
In terms of stock market impact, this financing move could potentially boost investor confidence, as the funds are earmarked for growth-oriented projects. However, the issuance of new shares might dilute existing shareholders' equity, which is a key consideration. The private placement also brings additional funds, showing strong backing and confidence from specific investors.
Overall, this financing news reflects the company's proactive approach to capital management and exploration expansion, which could posit long-term growth.
The decision to allocate the funds towards the Warintza Project and regional exploration in Ecuador is indicative of Solaris Resources' commitment to its core operational focus. The Warintza Project is a flagship venture and expanding exploration there is likely to yield significant long-term benefits if new resources are discovered.
The issuance price of
For retail investors, this news could be seen as positive because it demonstrates both financial strength and strategic clarity. However, it's essential to monitor how efficiently the raised capital is deployed and the outcomes of the exploration activities. Any substantial discoveries or progress reports would likely drive stock prices upwards.
VANCOUVER, British Columbia, June 10, 2024 (GLOBE NEWSWIRE) -- Solaris Resources Inc. (TSX: SLS; NYSE: SLSR) (“Solaris” or the “Company”) is pleased to announce that it has closed its previously announced bought deal equity offering (the “Offering”). The Company issued, on a bought deal basis, 8,222,500 common shares of the Company (“Common Shares”), including 1,072,500 Common Shares pursuant to the underwriters’ full exercise of the over-allotment option, at a price of
The Offering was completed pursuant to an underwriting agreement dated May 27, 2024, between the Company and a syndicate of underwriters led by National Bank Financial Markets, RBC Capital Markets and BMO Capital Markets, as Joint Bookrunners.
The net proceeds of the Offering will be used to fund an expanded exploration and infill drilling program at the Company’s flagship Warintza Project in southeastern Ecuador, together with enhanced regional exploration activities, including fieldwork on ten new exploration concessions which were recently awarded to the Company, and for working capital and general corporate purposes.
The Company also issued, on a private placement basis, 2,795,102 Common Shares at a price of
Unless otherwise stated, all dollar amounts disclosed herein are expressed in Canadian dollars.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the Common Shares nor shall any sale of the Common Shares occur in any jurisdiction, including the United States, in which such offer, solicitation or sale is unlawful. The securities have not been and will not be registered under the U.S. Securities Act or any securities laws of any state of the United States and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States unless an exemption from such registration requirements is available.
On behalf of the Board of Solaris Resources Inc.
“Daniel Earle”
President & CEO, Director
For Further Information
Jacqueline Wagenaar, VP Investor Relations
Direct: 416-366-5678 Ext. 203
Email: jwagenaar@solarisresources.com
About Solaris Resources Inc.
Solaris is advancing a portfolio of copper and gold assets in the Americas, which includes a world class copper resource with expansion and discovery potential at its Warintza Project in Ecuador; a series of grass roots exploration projects with discovery potential in Peru and Chile; and significant leverage to increasing copper prices through its
Cautionary Notes and Forward-Looking Statements
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will” and “expected” and similar expressions are intended to identify forward-looking statements. These statements include statements regarding the use of proceeds raised in the Offering. Although Solaris believes that the expectations reflected in such forward-looking statements and/or information are reasonable, readers are cautioned that actual results may vary from the forward-looking statements. The Company has based these forward-looking statements and information on the Company’s current expectations and assumptions about future events including the Company’s future plans. These statements also involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Solaris Management’s Discussion and Analysis, for the year ended December 31, 2023 available at www.sedarplus.ca. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Solaris does not undertake any obligation to publicly update or revise any of these forward-looking statements except as may be required by applicable securities laws.
FAQ
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