Solaris lands $200M from Royal Gold for Ecuador copper-gold project

Canadian mining developer Solaris Resources (TSX: SLS)(NYSE: SLSR) has secured a $200 million financing deal from streaming and royalty company Royal Gold (NASDAQ: RGLD) to advance its Warintza copper-gold project in Ecuador.

The agreement includes a gold stream and a net smelter return (NSR) royalty. It will be structured in three instalments: $100 million upon closing, $50 million after achieving key milestones such as a pre-feasibility study and environmental approval, and a final $50 million one year later.

“This transaction is a clear endorsement of the potential scale, geological qualities and the near-surface nature, economics and stage of development of Warintza,” Solaris chief executive Matthew Rowlinson said in the statement. He called the project one of the few near-term, globally significant copper opportunities not held by a major producer.

Under the deal, Royal Gold will receive 20 ounces of gold for every million pounds of copper produced from a defined area of interest. Solaris will receive 20% of the spot gold price for the first 90,000 ounces delivered, rising to 60% thereafter. The NSR royalty begins at 0.3% and increases annually by 0.0375% to a maximum of 0.6%, unless gold deliveries begin or eight years pass.

Solaris said the funding will eliminate its debt to Orion Mine Finance while preserving capital for development through to a final investment decision.

The Vancouver-based firm plans to release a pre-feasibility study and updated mineral resource estimate for Warintza in the third quarter of 2025. A bankable feasibility study will follow, with environmental approvals targeted by mid-2025 and exploitation permits by mid-2026.