Solaris ends plan to sell stake to China's Zijin Mining, cites government rules
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
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Should l Buy ?
Source: Yahoo Finance
- Solaris Resources Scraps Stake Sale to Zijin Mining Group:
- Solaris Resources decided not to proceed with selling a 15% stake to China's Zijin Mining Group due to concerns about meeting Canada's strict foreign investment standards.
- The deal, aimed at developing the Warintza copper project in Ecuador, required approval under the Investment Canada Act, which now scrutinizes investments from state-owned enterprises in critical minerals.
- The company's CEO expressed disappointment over the deal's delay, citing Canada's critical minerals policy as counterproductive for foreign assets.
- The decision to cancel the deal led to a slight drop in Solaris Resources' stock price on the Toronto Stock Exchange.
- RBC Capital Markets noted that scrapping the deal removed regulatory uncertainty and avoided dilution of value.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
