Solaris Copper Inc. is pleased to announce that its wholly-owned subsidiary, Solaris Copper Chile SpA, has entered into a definitive earn-in option agreement with Minera Freeport-McMoRan South America Limitada with respect to Freeport’s Tamarugo property in Chile.
Tamarugo is a grass-roots copper porphyry target consisting of approximately 5,100 hectares strategically located in northern Chile approximately 85 kilometres northeast of Copiapo and approximately 65 kilometres southwest of Codelco’s El Salvador Copper Mine.
Greg Smith, CEO of Solaris, commented, “We are pleased to build on our existing relationship with Freeport in Chile as they advance our Ricardo property and we commence exploration at Tamarugo. Tamarugo was selected for Solaris by J. David Lowell, the leading expert on copper porphyry exploration. Tamarugo is in a jurisdiction hosting many large-scale gold and copper mines, several of which were discovered by Mr. Lowell, and both he and Jorge Fiero, the Company’s Vice President of Exploration, will manage the exploration program at Tamarugo.”
Option Agreement Overview
Pursuant to the Option Agreement, Solaris Chile can earn up to a 75% interest in Tamarugo for gross expenditures of $5.5 million plus the delivery of a pre-feasibility study for a mine at Tamarugo, subject to a back-in right in favour of Freeport.
A summary of the key terms is as follows:
Solaris will pay a finder’s fee in connection with the Option Agreement consisting of an initial 1,000,000 warrants exercisable for three years into common shares of Solaris at an exercise price of C$0.35 per share and an additional 1,000,000 common shares of Solaris upon making a discovery of potentially economic mineralization at Tamarugo.
Private Placement Financing
In connection with the Option Agreement, Solaris has completed a non-brokered private placement financing. Pursuant to the Private Placement, Solaris issued 2,452,000 common shares of the Company at a price of C$0.25 per common share for gross proceeds to the Company of C$613,000. No fees or commissions were paid in connection with the Private Placement. The common shares issued pursuant to the Private Placement are subject to a four-month hold.
Solaris intends to use the net proceeds of the Private Placement to advance permitting and exploration activities at Tamarugo and at its other mineral properties and for general and working capital purposes.
About Solaris Copper
Solaris Copper is a multi-asset exploration company advancing copper projects in the Americas. The Company is focused on advancing its 100%-owned Warintza copper-molybdenum property in Ecuador and holds a 100% interest in the Ricardo early-stage copper-molybdenum property in Chile which is under option to Freeport. Solaris Copper also holds a 60% interest in the La Verde advanced-stage copper-silver-gold property in Mexico with the remaining 40% held by a subsidiary of Teck Resources and has earn-in agreements for the Tamarugo copper project in Chile and two early-stage base metals projects in Peru. Solaris Copper operates as a reporting issuer but is not currently listed on a designated stock exchange.
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