Aclara Resources Sees CAP S.A. Take 20% Interest In Rare Earths Subsidiary For US$29 Million
Demand for rare earths is heating up, with Aclara Resources (TSX: ARA) revealing this morning that it has had a major investment at the project level into a Chile-based rare earths project.
The investment, which comes from CAP S.A., a Chilean conglomerate, will see US$29 million invested into REE Uno SA, the subsidiary which holds Aclara’s Penco Module project and other mining concessions in Chile. The investment is good for a 20% stake in the subsidiary, and is to be made in three installments over a period of three years.
The tranches will see US$9.7 million invested upon closing, US$12.5 million invested in January 2025, and US$6.9 million in January 2026.
The initial investment values the subsidiary at US$116.5 million.
The major investment also comes with an option to invest an addition US$50 million for an additional 20% equity interest, once environmental permits have been received. A three year option also exists for CAP to take up to a 19.9% interest in Aclara.
Finally, the two parties have agreed to launch a joint venture for the development of metals and alloys for the rare earths permanent magnet industry.
The Penco Module project currently has an estimated net present value (8%) of US$128 million, based on a preliminary economic assessment completed in September 2021. The project contains measured and indicated resources of 62.9 kilo tonnes of contained TREO.
Aclara Resources last traded at $0.53 on the TSX.
Information for this analysis was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
