Aclara Resources (TSX: ARA) raises funds for the Carina project in Brazil through a private placement. The company plans to apply for a preliminary licence and complete a pre-feasibility study in the upcoming year.
Rare earths developer Aclara Resources (TSX: ARA) is raising $25 million from a private placement of shares to fund the Carina project in Brazil. The company plans to apply for a preliminary licence and complete a pre-feasibility study next year. The shares will be priced at C$0.70 each, representing a 41% premium over Aclara’s closing price on the TSX last Friday. In total, Aclara will issue approximately 51.
3 million shares to three subscribing parties: CAP SA, Hochschild Mining Holdings and New Hartsdale Capital. The latter two are current shareholders of the company. Upon completion, CAP, Hochschild and New Hartsdale will each own 10.18%, 19.65 and 36.9% of Aclara’s share capital. Aclara Resources’ stock rose 7.1% to C$0.53 apiece as of 11:50 a.m. ET, for a market capitalization of C$87.3 million. It traded between C$0.36 and C$0.65 over the past 52 weeks. In welcoming CAP as a new shareholder, Aclara’s chairman Eduardo Hochschild said the Chilean conglomerate will bring “deep industry expertise” and is “an invaluable partner in our mission to establish a sustainable and integrated supply chain for rare earths.” Ramon Barua, CEO of Aclara, added that the financing is “an important step” in Aclara’s clear strategy to become a reliable and sustainable producer of all magnetic rare earths, highlighting CAP’s investments in the company’s Penco module project in Chile. CAP previously invested in Aclara’s Penco project in exchange for a 20% equity participation. At the time, Aclara said it will draw on CAP’s experience in environmental permitting to strengthen the environmental assessment for Penco, located in the Bio-Bio region of Chile, and is now working with various agencies through the environmental assessment. The project hosts an ionic clay deposit containing about 63,000 tonnes of total rare earth oxides (TREO) in the measured and indicated category (27.5 million tonnes grading 2,292 ppm TREO)
MINING FINANCE ENERGY Aclara Resources Rare Earths Brazil Project Carina Project Financing
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