Canadian mining company Solaris Resources will receive a C$130m ($97m) investment from an affiliate of Chinese mining company Zijin Mining Group through a private placement.

Zijin will buy around 28.5 million common shares of Solaris, at a subscription price of C$4.55 per common share, which is a 14% premium to the last closing price of Solaris shares.

Upon closing, Zijin will own nearly 15% stake in Solaris and will appoint a member of the board.

The Canadian mining company intends to use the proceeds from the placement to advance the development of its Warintza copper project in southeast Ecuador.

Solaris Resources president and CEO Daniel Earle said: “Zijin is one of the most successful major mining companies in the world.

“It boasts an unprecedented track record of growth from its origins operating a single gold mine in the early 1990s to becoming a global major operating in 16 countries with total revenue far in excess of its gold mining peers, including excepted top five-ranked copper production in 2024.

“We take tremendous pride in announcing our new strategic partnership with Zijin and look forward to leveraging its deep technical expertise and financial capacity in delivering the full potential of one of the last remaining greenfield copper districts at low elevation and adjacent to the infrastructure available globally.”

Under the terms of the subscription agreement, Zijin can nominate a member to the Solaris board of directors for a period until Zijin controls at least 5% shares.

In addition, Zijin is also entitled to participation rights to purchase additional securities in certain circumstances to maintain its proportionate interest in the company.

The closing of the private placement is subject to certain customary conditions and approvals, including TSX approval and regulatory approvals in Canada and China.

China International Capital Corporation Hong Kong Securities and Minmetals Securities served as transactional advisors to Solaris, in connection with the private placement.