Aclara Resources Inc (TSX:ARA, OTC:ARAAF) announced the closing of CAP SA's acquisition of a 20% stake in its Chilean subsidiary REE Uno, which owns the Penco Module heavy rare earths project in Chile.
The company said it has received the initial payment of US$9.7 million in connection with the acquisition, which represents a pre-money valuation for REE Uno of US$116.5 million.
Per the terms of the agreement first announced in March, this is the first of three payments for the acquisition. The remaining two tranches of US$12.5 million and US$6.9 million are to be made in January 2025 and 2026, respectively.
CAP’s capital investment in REE Uno totals US$29.1 million.
Funding will be used to support the development of the Penco Module through the permitting, community relations, and feasibility study phases.
It will also allow the company to focus its current cash reserves to advance its Carina Module project in Brazil.
CAP SA is the parent company of CAP Group, a Chilean conglomerate operating across various industries including iron ore mining, with multiple projects in Chile.
Aclara is a development-stage company that focuses on heavy rare earth mineral resources hosted in ion-adsorption clay deposits.