The Chilean mining company will acquire 10.2% of the property of the Canadian company that owns the Carina Project in Brazil, the Penco Module in Chile and a rare earth separation project in the United States.
Chilean mining company CAP will indirectly acquire ownership of the Carina project in Brazil by acquiring 10.2% of Aclara Resources, a Canadian company listed on the Toronto Stock Exchange that works on the development of rare earth mining.
Through this investment, CAP will also indirectly increase its stake in the Penco Module, in the Biobío region, from 20% to 28.1%.
To this end, it will subscribe to US$10.8 million of the US$25 million that Aclara will raise through a capital increase, the closing of which is scheduled for the end of February 2025 following approval by minority shareholders, and in which the other subscribers will be companies linked to the Hochschild Group.
Aclara will use the funds to finance Carina, advance its integrated supply chain strategy and for general corporate purposes.
Another percentage will be used to develop a rare earth separation plant in the United States, which should see significant progress by 2025, such as the completion of the location study, execution of laboratory tests and the start-up of pilot-scale tests.
On the other hand, the parties will sign an Investors Rights Agreement (IRA), which establishes that CAP may appoint a director to the Aclara Resources board, a position that will be occupied by the Group's president, Juan Enrique Rassmuss.
It also notes that CAP maintains a preferential option to increase its stake to 19.9% in the parent company and 40% in the Penco project.
CAP Group President Juan Enrique Rassmuss said: “It is an honour to join Aclara’s board of directors and to deepen our relationship with them alongside a leading group such as Hochschild. We are confident that together we will achieve the goal of turning Aclara into an integrated producer of heavy rare earths. This milestone also reinforces CAP’s commitment to innovation as a driving force for opening new doors towards more sustainable and competitive development.”
For his part, Aclara President Eduardo Hochschild added that “beyond its financial strength, CAP brings deep industry experience, making them an invaluable partner in our mission to establish a sustainable and integrated supply chain for rare earths. With their support, Aclara is well positioned to advance its projects in Brazil, Chile and the United States, paving the way to becoming a global leader and driving significant progress in the fight against climate change.”
Along these lines, the general manager of CAP Group, Nicolás Burr, added that “this agreement represents an important step forward in our strategy for rare earths and their value chain, a key resource for the development of electromobility and renewable energies, and whose global demand is projected to grow at double-digit rates. It also allows us to consolidate a portfolio of projects with great potential in the Region, thus sealing our entry into Brazil. It is undoubtedly a major step forward in our 2030 Strategy.”
Aclara CEO Ramon Barua added that the agreement “is an important step in Aclara’s clear and firm path towards becoming a leading producer of all magnetic rare earths. CAP has proven to be a very effective contributor to our work on the Penco Module and through this offer we welcome them to the Aclara Resources shareholder base.”
CARINA
Part of the financing raised in the capital increase will be allocated to Carina, Aclara Resources' flagship project in Brazil.
The initiative is focused on the extraction of heavy rare earths and is currently undergoing a feasibility study.
It has exploration permits in an area of 6 thousand hectares and is located in the northeastern part of the State of Goiás, 370 km from Brasilia.
Next year will be key for the development of this project: the Environmental Impact Study will be presented; the continuous pilot operation on a semi-industrial scale should be built; the infill drilling campaign aimed at converting resources to the measured and indicated category for the pre-feasibility study would be completed; among others.
PENCO MODULE
The relationship between Aclara and CAP began in March 2024, when the Group acquired 20% of the ownership of the first Chilean rare earth deposit, a project that Aclara is developing in Penco, Biobío region.
In parallel, they created the company REE Alloys, whose ownership is divided equally and through which value-added products will be developed based on iron and rare earth alloys, which are used as raw material for the final production of permanent magnets.
