Aclara Resources Announces Strategic Investment by CAP in Chilean Subsidiary

Aclara Resources Inc., based in Toronto, has officially declared a notable transaction involving a strategic investment of US$29 million by CAP S.A., a major player listed on the Chilean Stock Exchange, into Aclara's Chilean subsidiary, REE Uno. This investment, part of a broader investment agreement, marks a critical development for Aclara, enabling advancements in its Penco Module and contributing significantly towards future sustainability and rare earths minerals extraction.

Beyond the initial investment, the agreement outlines an option for CAP to further invest US$50 million in REE Uno and acquire a significant equity stake in Aclara, maxing at 19.9%. This partnership aims at fostering advancements in the rare earths industry, particularly focusing on the development of metals and alloys for the permanent magnet sector, underpinning both companies’ commitment to environmental and sustainable resource extraction.

The collaboration also signifies a leap towards vertical integration in the rare earths industry for Aclara. By aligning with CAP’s robust metallurgical experience and Aclara's expertise in the rare earths and permanent magnet industry, this partnership aims to establish a new metals and alloys company to innovate within the permanent magnet sector. The initial US$29.1 million capital will significantly aid Aclara's ongoing development projects, while the additional funding option post-environmental permit acquisition will mitigate financial risks associated with the Penco Module's construction.

According to Eduardo Hochschild, Chairman of Aclara, this alliance with CAP not only affirms the commitment to developing the Penco Module and further strategic endeavors in Chile but also signifies both entities' dedication to promoting sustainable practices within the natural resources domain. Juan Enrique Rassmuss of CAP echoed similar sentiments, highlighting the partnership's pivotal role in advancing materials key to decarbonization and energy transition.