Precious metal miner Hochschild Mining announced on Tuesday that it would spin off its rare earth mining business from the group and list Aclara Resources on the Toronto Stock Exchange by the end of the year.
Aclara, formerly known as Biolantanidos, has a series of strategic mineral rights in Chile and is now starting to develop its resources through the Penco Module project.
Aclara will be led by Ramon Barua, the current chief financial officer of Hochschild, who will resign to become chief executive of the rare earths business. Educardo Noriega (Eduardo Noriega), the current group treasurer, will succeed Mr Barua as Hochschild's chief financial officer.
"this is the logical next step in our rare earth business," said Educardo Hawkheed (Eduardo Hochschild), chairman of the company.
We believe that as two independent companies, both Hochschild and Aclara will have the greatest potential to create long-term value. Each company has its own strategic focus on its own products, its own dedicated management team, independent access to capital and independent valuations, while maintaining strategic relationships, which will enable Aclara to benefit from Hochschild's track record in project implementation and ESG. "
Hochschild shareholders will also benefit from retaining Aclara20% 's shares.
Aclara plans an initial public offering to raise funds to advance its exploration and development activities. The Toronto Stock Exchange has not approved the listing application.
Aclara follows a multi-module (multi-module) growth strategy, in which module (module) one provides high returns. It has a net present value of about $152 million to $177 million, a mining life of 11 years and requires capital expenditure of $119 million.
Aclara (to which the rare earth project belongs) is an ionic clay deposit, which is rarely found outside China.
