SLSSF - Solaris Announces US$80 Million Financing Package to Fund Warintza Project Through Studies and Permitting | Benzinga
VANCOUVER, British Columbia, Dec. 11, 2023 (GLOBE NEWSWIRE) -- Solaris Resources Inc. (TSX:SLS, OTCQB:SLSSF) ("Solaris" or the "Company") is pleased to announce that Solaris and OMF Fund IV SPV D LLC and OMF Fund IV SPV E LLC, entities managed by Orion Mine Finance Management LP (collectively, "Orion"), have entered into definitive agreements with respect to the previously announced financing package of US$80 million for the advancement of the Warintza Project (the "Project") in Ecuador, comprised of a US$60 million senior secured debt facility (the "Senior Loan"), an offtake with a buyback provision (the "Offtake"), a subscription for US$10 million in equity and a commitment for US$10 million in additional equity financing.
Highlights
- 4-year term for the Senior Loan
- No hedging conditions
- Buyback provision for Offtake upon a change of control in certain circumstances
- Drawdown of the Senior Loan will occur in three tranches based on milestones with (i) the first US$30 million expected to close in the coming weeks, (ii) a US$15 million drawdown to occur on the submission of an Environmental Impact Assessment (EIA), and (iii) another US$15 million drawdown to occur on the publication of a Pre-Feasibility Study (PFS) for the Warintza Project
- Orion and Solaris have entered into an Offtake for Orion to purchase 20% of metals produced from the Project for a period of 20 years from the start of production
- Subscription of the initial US$10 million of the Company's common shares at a price of C$5.11, representing the closing price prior to the initial announcement on November 6, 2023, with a further US$10 million equity financing commitment ...