American Marconi Wireless News - Aclara Receives U.S. Government Investment

The strategic investment provided under DFC's Project Development Program will primarily fund a feasibility study for the Carina Project. The feasibility study, which was initiated in July 2025 and is expected to be completed by the end of Q1 2026, is being conducted by Hatch Ltd. ("Hatch") as a continuation of the pre-feasibility study scheduled for release in September 2025. The Carina Project is projected to commence operations in 2028.

DFC is the U.S. Government's development finance institution that partners with the private sector to mobilize capital for strategic investments around the world. The Project Development Funds will be released over the course of the preparation of the feasibility study and will be based on the achievement of milestones forming integral parts of the feasibility study. No interest is payable on the Project Development Funds, and the repayment of the Project Development Funds may be triggered by DFC upon the Company achieving the Financing Event for the construction of the Carina Project. No security interest will be granted by the Company in connection with the Project Development Funds.

Ramón Barúa, Chief Executive Officer of Aclara, commented: "We are deeply honored to have been selected by the U.S. DFC as a recipient of the Project Development Funds. This initial investment is not only a validation of Aclara's strategy, but also an important first step toward a larger commitment from DFC once we complete the feasibility study for the Carina Project, which is already underway and expected to be finalized early next year.

Having such a strong partner helps de-risk the development of our project in Brazil while providing additional confidence to potential off-takers currently evaluating Aclara as a long-term supplier of heavy rare earths. The investment also highlights the strategic importance of heavy rare earths to the United States and the critical need to secure them from sustainable and reliable sources.

We are proud to welcome DFC as a partner and extend our sincere gratitude to their team for their trust and commitment. We look forward to building on this collaboration as we advance the Carina Project toward becoming a cornerstone of a resilient and sustainable Western supply chain."

Aclara Mine-to-Magnet Strategy

Aclara Resources is making steady progress toward its vertically integrated "mine-to-magnet" strategy, aimed at establishing a responsible and transparent supply of heavy rare earths for global markets. The Company is advancing two cornerstone projects in South America-the Carina Module in Brazil and the Penco Module in Chile-while simultaneously developing a U.S.-based separation facility that will serve as the critical midstream link in Aclara's value chain.

In Brazil, Aclara is operating a mixed rare earth carbonate pilot plant, an important milestone that validates its proprietary Circular Mineral Harvesting process. This environmentally focused technology recycles more than 95% of water and 99% of reagents, eliminates tailings, and enables complete revegetation of mining sites-setting a new benchmark for sustainable rare earth production.

In the United States, the Company has completed conceptual engineering for a state-of-the-art separation facility designed with waste minimization and zero liquid discharge systems. Aclara also announced a collaboration with Virginia Tech to host and operate its heavy rare earth separation pilot plant, which will provide a vital platform for technology validation, process optimization, and workforce training. This initiative marks a key step toward establishing a full-scale U.S. facility capable of converting mixed rare earth carbonates from Aclara's South American projects into separated oxides.

Downstream, Aclara is advancing a 50/50 joint venture with Chilean steelmaker CAP S.A. to produce rare earth metals and alloys, providing the essential feedstock for permanent magnets. Complementing this, the Company has entered into a strategic alliance with global magnet manufacturer Vacuumschmelze to integrate these materials into magnet production, positioning Aclara as one of the only fully ESG-compliant "mine-to-magnet" supply chains in the world.

About Aclara

Aclara Resources Inc. (TSX:ARA), a Toronto Stock Exchange listed company, is focused on building a vertically integrated supply chain for rare earths alloys used in permanent magnets. This strategy is supported by Aclara's development of rare earth mineral resources hosted in ionic clay deposits, which contain high concentrations of the scarce heavy rare earths, providing the Company with a long-term, reliable source of these critical materials. The Company's rare earth mineral resource development projects include the Carina Project in the State of Goiás, Brazil as its flagship project and the Penco Module in the Biobío Region of Chile. Both projects feature Aclara's patented technology named Circular Mineral Harvesting, which offers a sustainable and energy-efficient extraction process for rare earths from ionic clay deposits. The Circular Mineral Harvesting process has been designed to minimize the water consumption and overall environmental impact through recycling and circular economy principles. Through its wholly-owned subsidiary, Aclara Technologies Inc., the Company is further enhancing its product value by developing a rare earths separation plant in the United States. This facility will process mixed rare earth carbonates sourced from Aclara's mineral resource projects, separating them into pure individual rare earth oxides. Additionally, Aclara through a joint venture with CAP, is advancing its alloy-making capabilities to convert these refined oxides into the alloys needed for fabricating permanent magnets. This joint venture leverages CAP's extensive expertise in metal refining and special ferro-alloyed steels. Beyond the Carina Project and the Penco Module, Aclara is committed to expanding its mineral resource portfolio by exploring greenfield opportunities and further developing projects within its existing concessions in Brazil, and Chile, aiming to increase future production of heavy rare earths.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to, among other things, the Company's expectations as to DFC's funding commitment, the payment of Project Development Funds, and the Company's expectations as to the partnership with DFC, the achievement of the Financing Event, the potential conversion of the Project Development Funds into equity of the Company, the potential repayment of the Project Development Funds, the option of DFC to provide and/or arrange for additional financing for or investment in the Carina Project, the completion of the pre-feasibility and feasibility study for the Carina Project as contemplated by the Company, the projected commencement of operations at the Carina Project, and the success, effect or outcomes resulting therefrom,. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to risks related to successfully completing the pre-feasibility study and feasibility study relating to the Carina Project, operating in a foreign jurisdiction, including political and economic risks in Chile and Brazil; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licenses or renew them; cost of compliance with applicable environmental regulations; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and startup of mines and new development projects; risks related to fluctuation in commodity prices; risks related to mining operations; and dependence on the Penco Module and/or the Carina Project. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors" in the Company's annual information form dated as of March 20, 2025, filed on the Company's SEDAR+ profile. Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this press release is provided as of the date of this press release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

For further information, please contact:
Ramón Barúa Costa
Chief Executive Officer
[email protected]

SOURCE: Aclara Resources Inc.

View the original press release on ACCESS Newswire

L.Mason--AMWN