Canadian multi-asset explorer Solaris Resources has received $80m (C$108.59m) funding package from Orion Mine Finance Management (Orion) to advance its Warintza copper project in Ecuador.

The financing was provided by OMF Fund IV SPV D and OMF Fund IV SPV E, two entities managed by Orion.

It includes $60m in senior secured debt along with $10m for a subscription for equity and $10m as a commitment in additional equity financing.

The loan has a four-year term with no hedging conditions. Its drawdown will take place in three tranches based on certain milestones.

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By GlobalData

The first tranche of $30m is expected to be closed in the coming weeks.

Of the remaining amount, $15m can be drawn when the environmental impact assessment for the Warintza project is submitted and the remaining $15m can be drawn upon publishing a pre-feasibility study.

Solaris has also reached an offtake agreement with Orion to supply 20% of metals produced from the project for 20 years from the start of production.

Orion will subscribe to the company’s shares totalling $10m, at a price of C$5.11 per share. The additional $10m can be called upon at a later date after Solaris satisfies certain conditions.

Proceeds from the financing will be used for exploration and infill drilling, and to conduct technical and environmental programmes, studies, permitting and community social relations programmes.

The funding will also serve general and working capital requirements of the company.

Solaris executive chairman Richard Warke said: “This financing package funds the advancement of Warintza through studies and permitting, leading to a substantially de-risked project.

“This is a very special asset that has the potential to create tremendous long-term value for all stakeholders as it unlocks one of the last remaining major greenfield copper districts at low elevation and adjacent to infrastructure in the entire mining industry.”

The Warintza project is Solaris’ 100%-owned property, spread across 268km². It is located 40km north of the Mirador mine in southern Ecuador.

This project has an indicated mineral resource of 579 tonnes (t) at 0.59% copper equivalent (CuEq) and an inferred mineral resource of 887t at 0.47% CuEq.