Canadian rare earths company Aclara Resources is raising $25m through a non-brokered private placement to fund its Carina project in Brazil.
This placement involves the issuance of more than 51 million common shares at C$0.70 ($0.40) apiece, which marks a 41% premium to Aclara’s last closing price on the Toronto Stock Exchange.
The company has entered subscription agreements with Chilean mining holding company CAP, Hochschild Mining Holdings, and New Hartsdale Capital for the purchase of the shares.
This transaction requires shareholder approval, which Aclara will seek at a special meeting anticipated for early 2025. The closing of the private placement is expected by the end of February 2025 while key development milestones for the Carina project are set for next year.
These milestones range from submitting an environmental impact study to completing a pre-feasibility study.
A smaller portion of the funds, potentially supplemented by government funding, will be allocated to a separation project in the US.
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Aclara chairman Eduardo Hochschild Chairman said: “We are thrilled to welcome CAP as a strategic investor. Beyond their financial strength, CAP brings deep industry expertise, making them an invaluable partner in our mission to establish a sustainable and integrated supply chain for rare earths.
“CAP joins Hochschild Mining as a major shareholder of Aclara, uniting two distinguished companies with decades of proven success across the Americas. With their strong 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 meaningful progress in the fight against climate change.”
The Penco Module in Chile will not utilise proceeds from this placement, as its development is entirely covered by CAP’s investment in REE Uno made in April 2024.
Aclara CEO Ramon Barua said: “CAP has proven to be a very effective contributor in our work at the Penco Module and, through this offering, we welcome them to the shareholder base of Aclara Resources. Through their continued financial support of our development plan, our key shareholders are demonstrating their steadfast commitment to propelling Aclara towards its goal of becoming an integrated producer of rare earths outside of Asia.”
