Solaris and Government of Ecuador Announce Investment Protection Agreement for Warintza Project, Securing Stability of Regulations and Tax Incentives to Accelerate Development
June 09 2022 - 4:05PM
Solaris Resources Inc. (TSX: SLS; OTCQB: SLSSF)
(“Solaris” or “the Company”) is pleased to announce an agreement
with the Government of Ecuador in relation to an Investment
Protection Agreement (“IPA”) for its Warintza Project (“Warintza”
or “the Project”) in southeastern Ecuador.
The IPA provides a foundation of certainty with
respect to the legal framework governing the Project, including
stable mining regulations, security of title and investment for the
term of the agreement, as well as significant new tax incentives to
accelerate development.
Specific tax incentives include a 5% reduction
of income tax, fixing the income tax rate applicable to the Company
at 20%, exemption from the capital outflow tax, as well as the
exemption of all import duties for the import of goods needed for
new investments in the Project. Specific protections relate to the
prohibition of all forms of confiscation, non-discriminatory
treatment and equal playing field, legal security, tax stability
and international arbitration if there are any disputes in relation
to the Project.
The signing ceremony for the IPA is expected to
take place with the participation of the Warints and Yawi
communities in the village of Warintza in July 2022. The Company
recently amended its Impact and Benefits Agreement with these
communities reaffirming community support for the responsible
advancement of the Project.
Ms. Lorena Konanz, Vice Minister of Export and
Investment Promotion of the Government of Ecuador, stated, “From
day one, our administration has been focused on encouraging
sustainable and transparent economic growth in Ecuador with
incentives to facilitate major investments in the country. In the
mining sector, our most important goal is to ensure that
development is responsible, environmentally friendly, and
socially-committed, as at the Warintza Project.”
Mr. Vicente Tsakimp, Coordinator of the Warintza
Project Strategic Alliance, stated, “We are excited to be part of
the successful advancement of Warintza and show the industry that
it is possible to develop a mining project in a responsible and
inclusive way. The people of Warints and Yawi welcome President
Lasso’s approach which promotes the development of remote
communities as this has had a direct impact on our families’
economy, living conditions and opportunities.”
Mr. Daniel Earle, President & CEO,
commented, “President Lasso´s administration continues to take
consequential action to accelerate the development of the formal
mining sector in Ecuador. Its positive approach of regulatory
reform and meaningful tax relief focused on major new projects like
Warintza, which embrace responsible approaches to community
development and environmental protection, will pay great dividends
to the people of Ecuador for generations to come. We are humbled to
operate in service of its vision.”
On behalf of the Board of Solaris
Resources Inc.
“Daniel Earle”President & CEO, Director
For Further Information
Jacqueline Wagenaar, VP Investor RelationsDirect: 416-366-5678
Ext. 203Email: jwagenaar@solarisresources.com
About Solaris Resources
Inc.
Solaris is advancing a portfolio of copper
assets in the Americas, focused on its Warintza Project in Ecuador
that features a broad cluster of outcropping copper porphyry
deposits anchored by a large-scale, high-grade open pit resource
inventory at Warintza Central. Ongoing efforts are focused on rapid
resource growth and further discovery drilling. The Company offers
additional discovery potential at its portfolio projects: Capricho
and Paco Orco in Peru, Ricardo via joint-venture with
Freeport-McMoRan and Tamarugo in Chile, and significant leverage to
increasing copper prices through its 60%-interest in the La Verde
joint-venture with Teck Resources in Mexico.
Cautionary Notes and Forward-looking
Statements
This document contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively “forward-looking
statements”). The use of the words “will” and “expected” and
similar expressions are intended to identify forward-looking
statements. These statements include statements that the IPA
provides a strong foundation of legal certainty and stability of
mining regulations, security of title and investment, and
significant new tax incentives to accelerate development of the
Project, specific tax incentives include a 5% reduction of income
tax, fixing the income tax rate applicable to the Company at 20%,
exemption from the capital outflow tax, as well as the exemption of
all import duties for the import of goods needed for new
investments in the Project, specific protections relate to the
prohibition of all forms of confiscation, non-discriminatory
treatment and equal playing field, legal security, tax stability
and international arbitration if there are any disputes in relation
to the Project, and that the signing ceremony for the IPA is
expected to take place with the participation of the Warints and
Yawi communities in the village of Warintza in July 2022. Although
Solaris believes that the expectations reflected in such
forward-looking statements and/or information are reasonable,
readers are cautioned that actual results may vary from the
forward-looking statements. These statements are based on a variety
of assumptions including assumptions made about the Company’s
ability to advance efforts at the Warintza Project; and the
Company’s ability to achieve its growth objectives. These
statements also involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the risks, uncertainties and other factors
identified in the Solaris Management’s Discussion and Analysis for
the year ended December 31, 2021 available at www.sedar.com.
Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and Solaris
does not undertake any obligation to publicly update or revise any
of these forward-looking statements except as may be required by
applicable securities laws.
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