Mentioned:
A publicly traded mining company in Canada has big plans for rare earth elements in South America.
What’s happening:
- Aclara Resources (TSX: ARA) has publicly stated they plan to invest $1.3B USD into developing new rare earth mines and processing facilities throughout South America
By the numbers:
- Aclara Resources plans to invest $600M USD into the Carina Project located in central Brazil
- Aclara Resources is also planning to invest more than $150M USD into their flagship rare earth mine in Chile known as the Penco Module
Why it matters:
- This is the single largest funding commitment Aclara Resources has ever made towards building out a fully integrated supply chain for rare earth elements
Going deeper:
- Aclara Resources has also publicly stated they are evaluating potential locations within North America for a rare earth separation plan
- The United States International Development Finance Corporation has notably committed $5M USD of funding for a feasibility study for Aclara Resources’ Carina Project to reduce America’s dependence on China for the supply of rare earth elements
The fine print:
- Aclara Resources will need to raise significant capital through equity and debt financings in order to be able to fund their exploration plans as well as to begin construction of new separation facilities
