Solaris and Government of Ecuador Sign Investment Contract for Warintza Project, Securing Investment Protections, Regulatory and Fiscal Stability, and Tax Incentives
December 22 2022 - 12:00PM
Solaris Resources Inc. (TSX: SLS; OTCQB: SLSSF)
(“Solaris” or “the Company”) is pleased to announce that Solaris
and the Government of Ecuador have signed the Investment Contract
for the Warintza Project (“Warintza” or “the Project”) in
southeastern Ecuador, which ratifies the Investment Protection
Agreement (“IPA”) previously announced on June 9, 2022.
Mr. Daniel Earle, President & CEO,
commented: “We are very grateful to the Government of Ecuador and
our host communities for their support in reaching this major
milestone. The Investment Contract provides a foundation of
certainty, significantly de-risking the Warintza Project by
securing a stable regulatory and fiscal framework with
international legal protections for the Project while also
enhancing its returns through permanent new tax incentives.”
Highlights
The Investment
Contract provides for the following protections and incentives for
the duration of the title of the Project which extends with renewal
to 2066:
-
Security of investment
-
Stability of mining law
-
Stability of taxes at a reduced income tax rate of 20% (25%
previously)
-
Exemption from capital outflow tax (5%
previously)
-
Exemption from import duties (up to 5%
previously)
-
Detailed procedures for dispute resolution and
international arbitration protection
Mr. Julio José Prado,
Minister of Production, Foreign Trade, Investment, and Fisheries of
the Government of Ecuador, stated, “I want to thank Solaris for the
commitment with the country and with Morona Santiago, it is an
example of sustainable mining, responsible with the environment and
the communities. Since the first contacts in the Ecuador Open for
Business event, we have worked for a year and today we signed the
Investment Contract. The Warintza Project has a very important
influence, and they are working with the community in an exemplary
manner; this will allow more development and prosperity for the
zone and for Ecuador.”
Mr. Fernando Santos
Alvite, Minister of Energy and Mines of the Government of Ecuador,
stated, "I wish the best of success to the Warintza Project. This
is a very important project for the country in terms of scale and
investment. It is also important for what it represents, which is a
great commitment and understanding between the communities and the
Company.”
Mr. Vicente Tsakimp,
Lead Coordinator of the Warintza Project Strategic Alliance,
stated, “The Warints and Yawi Shuar Centers are glad that the
Warintza Project is advancing and that we are part of it. Our work
and coordination with the Company are an example that participatory
mining can be done, and we are proud of everything we have
achieved.”
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 a multi-asset exploration company,
advancing a portfolio of copper and gold assets in the Americas,
which includes: its primary focus, a world class large-scale
resource with expansion and discovery potential at the Warintza
Project in Ecuador; discovery potential at its Ricardo Project and
optioned and owned grass-roots Tamarugo Project in Chile; discovery
potential at its Capricho and Paco Orco projects in Peru; and
significant leverage to increasing copper prices through its 60%
interest in the La Verde joint-venture project with a subsidiary of
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 Investment Contract provides a foundation of
certainty, significantly de-risking the Warintza Project by
securing a stable regulatory and fiscal framework with
international legal protections while also enhancing its returns
through permanent new tax incentives, the Investment Contract
provides for the following incentives for the duration of the title
of the Project which extends to 2066 with renewal: security of
investment, stability of mining law, stability of taxes at a
reduced income tax rate of 20% (25% previously), exemption from
capital outflow tax (5% previously), exemption from import duties
(up to 5% previously), and detailed procedures for dispute
resolution and international arbitration protection. 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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