10:46 AM EDT, 04/30/2024 (MT Newswires) -- Solaris Resources ( SLSR ) said Tuesday that Ecuadorian state-owned miner Empresa Nacional Minera (Enami) awarded the company an option to acquire up to a 100% interest in 10 new exploration concessions. National Bank of Canada left Solaris with an "Outperform" rating and with a $8.50 price target following the company's update.

National noted the concessions comprise a land package of about 40,000 hectares adjacent to the Warintza project and the San Carlos-Panantza porphyry copper-molybdenum deposits, within the "prolific" Zamora belt that hosts Ecuador's largest copper and gold mines to the south.

National recalled that it models a total global resource of 1.02 billion tonnes within the Warintza Central deposit grading 0.53% CuEq; within that estimate, is a smaller, near-surface zone of near 180 mln tonnes grading 0.80% CuEq that supports the initial six years of mine life, which has been the primary focus of Solaris's exploration program over the past two years. At Warintza East, it noted, drilling to date outlines an area containing incremental tonnes at an average intercept of 0.36% CuEq which supports longer-term expansion potential within the existing land package as well as these new concessions.

Among highlights, the terms of the agreement are expected to include an upfront payment to Enami of US$250,000 and a proposed exploration program of up to US$25 million over the exploration phase. The agreement would also include an exclusive option to acquire the claims at a price to be determined by independent experts.

Solaris said the award follows a bidding process established by Enami, and is subject to the entry into a definitive framework agreement for the concessions. Solaris expects fieldwork to begin in May.

National Bank said its "Outperform" rating is "based on Warintza's large-scale/near-surface resource, attractive project economics and management's track record of generating shareholder value".

Solaris at last look had fallen near 4% to $5.25 per share, amid a lower overall stock market.

Price: 5.23, Change: -0.23, Percent Change: -4.21