Canada’s Aclara Resources has signed an investment agreement with Chilean mining holding company CAP, which will see the latter making a $29.1m (27.52bn pesos) investment in Aclara’s Chilean subsidiary, REE Uno.
This investment will grant CAP a 20% equity stake in REE Uno, which is the owner of the Penco Module.
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It is structured in three tranches, with an initial payment of $9.7m upon closing, followed by $12.5m in January 2025, and the final $6.9m in January 2026. The pre-money valuation of REE Uno stands at $116.5m.
The agreement also includes an option for CAP to make a further $50m investment in REE Uno for another 20% stake, contingent upon securing the necessary environmental permit for the Penco Module.
This would increase CAP’s stake to 40%, with a pre-money valuation of REE Uno at $150m.
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CAP also secured a three-year option to invest up to 19.9% in Aclara, with the right to participate in any private or public offerings and maintain pro rata voting rights.
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By GlobalDataAdditionally, CAP holds a one-time demand subscription right to invest up to 19.9% in Aclara, exercisable under certain conditions for up to 18 months following the initial three-year option.
The two companies also agreed to establish a JV company focused on developing metals and alloys for the rare earths permanent magnet industry.
CAP will spend $3m for a 50% share of the JV, with Aclara holding the remaining stake. Subject to customary closing conditions, the deal is expected to be completed within the next 30 days.
The initial $29.1m of capital from CAP will support the Penco Module’s development including permitting, community relations and feasibility studies.
This funding allows Aclara to reallocate its cash reserves towards the Carina Module project in Brazil.
The potential additional $50m investment is intended to finance a significant portion of the Penco Module’s construction equity.
The metals and alloys JV represents Aclara’s first step in vertically integrating its rare earths concentrate production into permanent magnet manufacturing.
CAP chairman Juan Enrique Rassmuss said: “This alliance with Aclara represents a historic milestone for Grupo CAP, marking the first step in our strategy to become leaders in the production of essential materials for decarbonisation and energy transition.
“We hope to contribute our knowledge in mining and metallurgy to generate value-added products based on new alloys and products.”
