Aclara Resources Inc (TSX:ARA, OTC:ARAAF) announced that its wholly owned REE UNO SpA subsidiary has received a tax rebate of about US$2.1 million from the Corporación de Fomento de la Producción (CORFO) in Chile for Research and Development (R&D) expenses related to the installation and operations of the Pilot Plant.
The heavy rare earth resource project developer said CORFO, which is the Chilean government institution in charge of promoting the production of goods and services and economic regional growth, has validated the pilot plant R&D expenses and determined the project to be key to the future production of the rare earths necessary for the manufacturing of permanent magnets used in wind turbines, electric vehicles, and other technologies vital to the energy transition.
"We are pleased to receive our second tax rebate based on R&D expenditures, which affirms our commitment to innovation and compliance with stringent environmental standards in our future operations," Aclara Resources chief financial officer Francois Motte said in a statement.
"Our commitment to R&D continues to drive us forward, with a clear focus on enhancing production efficiency, reducing costs, optimizing capital expenditures (CAPEX), all while upholding our exemplary environmental compliance," Motte added.
Aclara noted the tax rebate awarded by CORFO covers the construction and operation expenses of the pilot plant for a maximum amount of approximately US$6.0 million.
It added that the tax rebate includes the discounting of 35% of such approved expenses from income tax payments once the project is in operation.
The benefit comes in addition to the 27% tax shield generated over the remaining 65% of such expenses, which equates to approximately US$1.1 million, according to the company.
REE UNO SpA holds a 100% stake in the Penco Module in Chile.
Aclara Resources is a development-stage company that focuses on heavy rare earth mineral resources hosted in ion-adsorption clay deposits.
Its primary project is known as the Penco Module and is located in the BioBio Region of southern Chile. It is also evaluating a second module, the Carina Module, located in the State of Goiás in central Brazil.
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