06:35 AM EDT, 05/21/2024 (MT Newswires) -- Solaris Resources ( SLSR ) on Tuesday said it has voluntarily terminated a minority equity investment intended to support the Warintza project in Ecuador, including a potential purchase of an adjacent asset.

After four months of Canadian regulatory review, approval has not been obtained and the transaction no longer adequately reflects market value, the company said.

The transaction was priced at a 14% premium, but Solaris' share price has risen by more than 35% in the four months since the announcement. The company noted that despite the share price increase, it has still underperformed peers amid regulatory uncertainty.

Given the deal's minority investment nature and that it involved assets outside of Canada with a use of proceeds to expand Canadian interests in critical minerals, the parties expected regulatory approval to occur earlier.

"That this transaction cannot be completed in a reasonable timeframe signals that Canada's critical minerals policy is counterproductive in relation to foreign assets," said Daniel Earle, president and CEO of Solaris.

Solaris remains funded for its 2024 and 2025 Warintza baseline programs and key deliverables. An additional US$40 million is available through a recent offtake financing package.

Solaris also said it is pursuing a recently awarded option to acquire around 40,000 hectares adjacent to Warintza.