Solaris Resources has secured a $200 million financing package from Royal Gold, a move designed to accelerate the development of the Warintza project in Ecuador, one of the few major copper-gold opportunities not already in the hands of a mining major.
The structure of the agreement includes both a gold stream and a net smelter return (NSR) royalty, aimed at providing strategic capital while maintaining Solaris’ operational and commercial flexibility. The funding will fully cover activities required to reach a final investment decision and will repay existing senior secured debt with Orion Mine Finance.
Related News
- BASF Strengthens R&D in Copper Hydrometallurgy Amid Global Push for Sustainable Mining
- Hindalco Secures Future Fuel Supply with EMIL Mines Acquisition
- Arizona Lithium Accelerates Prairie Project After $4.25M Raise, Regulatory Win
- Resource Mining Corp Accelerates Copper-Gold exploration in Papua New Guinea’s Kisa Project
Three-Tranche Funding to Propel Key Milestones
Royal Gold will disburse the $200 million in three tranches. The initial $100 million is payable at closing. A second $50 million follows the publication of the pre-feasibility study (PFS) and technical approval of the environmental impact assessment, both expected in 2025. The final $50 million tranche will be paid on the first anniversary of closing.
“This transaction is a clear endorsement of the potential scale, geological qualities and stage of development of Warintza,” said Matthew Rowlinson, president and CEO of Solaris. “It is also a reflection of the strong investor confidence in Ecuador as a mining jurisdiction, supported by the government’s commitment to the sector as a pillar of long-term economic development.”
The Warintza project, discovered in 2000 and located in southeastern Ecuador, is one of the only globally significant, near-term copper projects not controlled by a major mining company. Measured and indicated resources stand at 1.08 billion tonnes at 0.48% CuEq, while inferred resources total 3.14 billion tonnes at 0.27% CuEq.
Gold Stream and NSR Royalty: A Balanced Structure
Under the gold stream component, Royal Gold will be entitled to 20 ounces of gold per million pounds of copper produced within a defined area of interest. For the first 90,000 ounces, the purchase price will be 20% of the spot gold price, increasing to 60% thereafter.
In addition, a 0.3% NSR royalty applies to all metal production across an expanded zone, with mechanisms in place for incremental increases. Notably, if there is a change of control at Solaris, terms allow for the stream’s potential termination and adjustment of the royalty—a safeguard for Royal Gold and an added layer of strategic maneuverability for Solaris.
“Warintza is one of the only large-scale copper-gold-molybdenum projects not controlled by a major mining company,” said Bill Heissenbuttel, president and CEO of Royal Gold. “The creative transaction structure offers Solaris flexibility as they consider strategic alternatives while protecting Royal Gold should development not proceed according to current plans.”
Commitment to Sustainability
Beyond the capital, Royal Gold has committed to supporting Solaris’ environmental and social initiatives, emphasizing a shared commitment to sustainable mining practices. With the Ecuadorian government actively promoting mining as a cornerstone of economic development, Warintza is increasingly positioned as a national strategic asset.
Solaris plans to publish a PFS in Q3 2025 and secure environmental impact approval by mid-2025. Concurrently, more than 82,000 meters of infill drilling is underway to update the project’s mineral resource estimate.
The financing underscores not just investor confidence in Warintza’s potential, but also a broader trend: the re-emergence of Ecuador as a viable and attractive mining jurisdiction. For Solaris, this deal marks a pivotal inflection point as it seeks to transition Warintza from exploration to development—on its own terms.
