China’s Zijin Mining Secures 15 Percent Stake in Canadian Critical Mineral Company Solaris Resources

A Chinese mining company is acquiring a 15 percent stake in the Canadian critical minerals development firm Solaris Resources Inc. This move marks the latest challenge presented by Chinese mining giants to Canada’s national security policy on critical minerals. Solaris revealed a subscription agreement with China-based Zijin Mining Group Jan. 11. The deal involves a roughly $130 million private placement of Solaris common shares at a subscription price of $4.55 per share by a Zijin affiliate. A private placement is a sale of stock shares or bonds to selected investors and institutions rather than on the open market. As per the agreement, Zijin can nominate a member to the board of directors at Solaris as long as it holds a minimum 5 percent of the outstanding common shares. The agreement also entitles Zijin to participation rights to purchase additional securities under certain circumstances to maintain its proportionate interest in the company....