Aclara Resources

Overview

Aclara Resources (TSX:ARA), a heavy rare earth element (HREE) exploration and development company, is on a quest to reinvent rare earths mining as a climate-friendly industry, sustainably supplying these critical metals the world requires to achieve a low-carbon future.

Aclara has patented unique process to extract heavy rare earths in a sustainable way. The process, called “Circular Mineral Harvesting” requires no tailings dam, prioritizes full revegetation of impacted areas, and recirculates up to 95 percent of water used and 99 percent of the main reagent (a common fertilizer that recovers the rare earths from the clays). Additionally, Aclara will leave a low carbon footprint due to the lack of explosives, grinding or milling in its extraction process.

This transformative new process has earned awards and accolades from the industry. Aclara was recognized at the 2024 Mining Technology Excellence Awards, winning two categories: Innovation and Environmental Sustainability. The company was also the recipient of the 2022 Sustainability Initiative of the Year award and the 2023 Innovation Award from SEAL Awards.

Aclara ran a successful piloting operation for the Penco Module’s ionic clays from June to August 2023. The company processed a total of 120 tonnes of ionic clays and produced approximately 107 kilograms of wet high purity Heavy Rare Earth Elements. The piloting operation was a pivotal element of Aclara's commercial strategy, resulting in the production of representative product samples that have been sent to more than ten separation companies across the United States, Europe, and Asia.

The company followed a similar piloting operation with its Carina Module (Brazil) clays from December 2023 to February 2024, producing ~15 kilograms of heavy rare earth mixed carbonates, which were key in commercial discussions with potential separators, other stakeholders from the rare earths value chain and original equipment manufacturers.

Aclara has released an updated preliminary economic assessment (PEA) on the Carina Module. Highlights of the updated PEA include: after-tax NPV of ~US$1.5 billion using an 8 percent discount rate; 27 percent internal rate of return over the 22-year life of mine and a payback period of 4.2 years; low initial capital cost of US$593 million and low sustaining capital cost of US$86 million; average annual net revenue and EBITDA of US$505 million and US$366 million, respectively; and high average net smelter return of US$52 per tonne processed compared to a low average production cost of US$13.6 per tonne processed.

Company Highlights

• Aclara Resources is a heavy rare earths company developing two ionic-clay heavy rare earth deposits; one in Chile and one in Brazil.
• The company’s unique, patented process, known as Circular Mineral Harvesting is a closed-circuit that extracts heavy rare earth elements (HREE) in a clean way. 95 percent of the water used and 99 percent of the main reagent (a fertilizer) are recirculated, eliminating the need for a tailings dam and conditioning the spent clays for future revegetation with native trees.
• Aclara announced a positive PEA for its Carina Module (Brazil) in January 2024: After-tax Net Present Value of ~US$1.2 billion using an 8% discount rate, 29% IRR over the 17-year project life
• The company successfully tested its clean process with ionic clays from both projects at its pilot plant in Chile in 2023-2024.
• In March 2024, the Company announced a strategic investment from CAP S.A in its Chilean subsidiary of up to US$80M
• Awards and Recognition: Aclara was awarded the 2024 Mining Technology Excellence Awards (Innovation and Environmental Sustainability categories), the 2023 Innovation Award, and the SEAL Awards' 2022 Sustainability Initiative of the Year for its Circular Mineral Harvesting process.
• As at Q1 2024, the Company’s cash balance totaled US$27.744M

Pilot Plant May 2023

Management Team

Ramon Barua - CEO and Director

Ramon Barua has more than 10 years of experience as CFO of Hochschild Mining. He was previously CEO of Fosfatos del Pacifico SA, general manager of Hochschild’s Mexican operations, and deputy CEO and CFO of Cementos Pacasmayo.

Francois Motte Sauter - CFO

Francois Motte has more than 10 years of experience in various financial positions, including serving in corporate finance, financial planning, management and control, business development and investor relations at Hochschild Mining.

Barry Murphy - COO

Barry Murphy is an experienced mining industry veteran with more than 30 years of experience in the industry. Prior senior positions included roles at Torex Gold Resources, Yamana Gold and Anglo-American. Additionally, he has led technical services and project development teams in Chile, Peru, Argentina, Mexico and South Africa.

Dr. Gisele Azimi- Technical Advisor

Dr. Gisele Azimi is an associate professor and Canada Research chair joint-appointed between the Departments of Chemical Engineering & Applied Chemistry and Materials Science & Engineering at the University of Toronto. She is an expert in the fields of electrochemistry, thermodynamics, hydrometallurgy, supercritical fluids and materials design. She has published several journals and refereed conference publications and she continues to present her research at national and international conferences. She is also a co-inventor in a number of patent applications and one awarded patent.

Dr. Azimi received her PhD from the University of Toronto and she completed her first and second postdoctoral appointments at MIT.

Sebastian Rojas Tallarida - Sustainability Manager

Sebastian Rojas Tallarida has more than 10 years of experience in the mining sector, working on a wide range of sustainability matters, including environmental, safety and social areas. Prior to joining Aclara, Tallarida worked at Anglo-American and Arcadis Chile. He holds a degree in Environmental Engineering from the Universidad Andres Bello in Chile and an MBA from the Universidad de Chile.

Nelson Donoso, General Manager - Chile

Nelson Donoso is a board member and vice president of the "Cámara de la Producción y del Comercio Biobío" (Biobio’s Chamber of Production and Commerce), the most important guild association in the Biobío Region, which brings together the main productive sectors, including more than 140 companies and trade associations. In this entity, he also serves as president of Clean Energy and Climate Change Committee. Additionally, he is a member of the advisory council of Biobio’s Regional Ministry of the Environment and of the Environmental advisory committee for the Regional Governor of Biobio.

Jose Augusto Palma García Zapatero - Director

Jose Augusto Palma Garcia Zapatero is a senior lawyer and executive, with more than 25 years of experience. He has successfully held key positions in demanding and high-profile roles across diverse sectors, including corporations, law firms, government, and multilateral institutions. Since 2006, Palma Garcia Zapatero has been serving as vice-president of legal and corporate affairs at Hochschild Mining. In this role, he leads and manages a multidisciplinary team of over 100 professionals in the legal, environmental, social relations, and institutional affairs departments of Hochschild Mining. Prior to this, he worked as senior counsel at the World Bank from 2004 to 2006. During his tenure, he provided advice on the registration of arbitration cases. From 2002 to 2003, he served as senior advisor to the Office of the Prime Minister and as an advisor to the Minister of Economy and Finance of Perú. Between 1992 and 2002, Palma Garcia Zapatero worked as an associate and partner at Swidler Berlin LLP, where he provided legal counsel to international energy and telecom companies.

Bonzi Yukomizo - General Manager Brazil

Bonzi Yokomizo brings extensive global mining leadership to Aclara, notably as chief projects officer at Serra Verde's rare earths project in Brazil. He directed engineering, construction, and commissioning. With senior roles at major firms like Anglo Gold Ashanti and Vale, he excelled in managing complex projects, including the $12.5B Jack Pine expansion, $9.0B Rio Colorado potash project, $5.0B Coal project, and $1.5B Montes Claros de Goias Nickel project. Before Serra Verde, Bonzi held high-level roles at leading mining companies like Anglo Gold Ashanti, Yamana Gold, Vale, and Votorantim. He showcased his skill in managing intricate ventures, including the $12.5 billion Jack Pine oil sands expansion, $9.0 billion Rio Colorado potash project, $5.0 billion Coal project, and the $1.5 billion Montes Claros de Goias Nickel project, among others.