Aclara Announces Rare Earths Processing IN the USA
ACLARA ANNOUNCES RARE EARTHS PROCESSING IN THE USA
TORONTO, ON, April 3, 2024 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased
to announce that it has incorporated a U.S. based subsidiary, Aclara Technologies Inc. (“Aclara
Technologies”), to develop its rare earths separation capabilities in the United States. This development will
allow Aclara to better position itself to carry out all of the stages leading up to the production of metal and
alloys for high performance permanent magnets, following the recent announcement that the Company has
entered into a joint venture with CAP to develop metal and alloys capabilities. As a result, Aclara is positioned
to become the first vertically integrated heavy rare earths company outside of Asia.
Aclara CEO, Ramon Barua, commented:
“This strategic decision is only possible because of Aclara ’s unique feed of clean heavy rare earths,
particularly Dysprosium and Terbium, which is expected to be sourced from two stable and investment friendly
countries in the Americas. This competitive advantage distinguishes Aclara from other players in the industry.
By going further in the vertical integration of rare earths production, we improve our ability to commercialize
our product while retaining the economic margins of this important stage in the value chain. Consequently,
end users will benefit from a more cost competitive product built with traceable, fully ESG compliant materials,
resulting in a stable long -term supply of heavy rare earths. We understand the importance of building a
geopolitically independent supply chain for critical materials and we aspire to become a leader in that effort. ”
Aclara´s Vertical Integration Strategy
The decision to integrate vertically responds to the need for creating a geopolitically independent supply chain
for permanent magnets, a much-needed performance enhancer for the motors of electric vehicles, wind
turbines, robotics and other applications associated with the decarbonization of our planet.
Aclara Technologies is expected to source high purity mixed rare earths carbonates from Aclara’s extraction
modules in Chile and Brazil. These carbonates will be then converted into individual rare earths oxides in the
separation facility . For this purpose, Aclara Technologies has awarded a contract to the Saskatchewan
Research Council ( “SRC”) to develop a production flowsheet specially designed for its premium carbonate,
and to Hatch Ltd. (“Hatch”) to work on the engineering of the proposed separation facility. Under the terms of
the agreement, SRC will develop a conceptual Solvent Extraction (“SX”) separation process, which will serve
as the basis for Hatch to conduct a Class 5-AACE CAPEX and OPEX estimation for the rare earth separation
facility. The aim of this conceptual analysis is to design a plant capable of processing Aclara’s mixed rare
earth carbonates into separated neodymium and praseodymium (NdPr) oxide (with a purity of 99.0-99.9% by
weight) and dysprosium (Dy) and terbium ( Tb) oxides (with a purity of 99.5 -99.99% by weight) . The
engineering study is expected to be completed by the end of the third quarter of 2024.
The Company notes that t he final decision to build the separation facility will depend on the completion of a
thorough analysis of costs, logistics and time to permitting. Alternative locations currently under consideration
include Brazil and Chile.
Aclara COO, Barry Murphy, commented:
“This study represents the starting point of our strategic intent to vertically integrate our future mining
operations into the production of separated rare earth oxides, and to position Aclara as a key player in the
future supply of heavy rare earth oxides. Both SRC and Hatch possess the requisite expertise and
experience to undertake this important work and we are therefore thrilled to be collaborating with these two
highly reputable companies in the execution of the separation study.”
The following senior engineers from SRC and Hatch will lead the separation engineering study:
• SRC: Baodong Zhao (PhD, P.Eng) has more than 25 years of experience in the metallurgical
engineering and project management, especially in rare earth mineral processing and
hydrometallurgy. He was previously an independent metallurgical consultant at REE Metallurgical
Consulting and the Vice President of Metallurgy at Great Western Minerals Group Ltd. Over the past
eight years, Baodong has worked on many rare earth projects by leading and participating in all
aspects of laboratory and pilot plant test work, as well as preliminary economic assessments
covering sample preparation, mineralogical characterization, beneficiation, hydrometallurgy and rare
earth element separation using solvent extraction technology. Baodong is a reviewer for the
Canadian Metallurgical Quarterly.
• HATCH: Rob Fraser has more than 30 years hydrometallurgical experience including operations,
design, study management, commissioning, and technology commercialization. He obtained
operations experience at Cawse Nickel (HPAL, SX, EW) and within Nyrstar at the Hobart and Cockle
Creek Smelters. Major projects have included Voisey´s Bay nickel in Canada, where a
hydrometallurgical demonstration plant (POX, SX, EW) was built before the commercial plant was
taken to feasibility level and Goro Nickel Project, wher e he provided metallurgical support at the
Yabulu refinery . Rob held roles, from Technical Manager and Deputy Project Manager on the
commercial plant feasibility study, through to Lead Process, Module Construction Manager and
Process Commissioning Lead on the demonstration plant. Rob is Hatch´s Global Hydrometall urgy
Lead.
In parallel, Aclara will start to develop its metals and alloys capabilities through REE Alloys SpA, its recently
established joint venture company with CAP S.A. (further details regarding the joint venture can be found in
the Company’s press release issued on March 13, 2024). Aclara’s goal is to be able to connect all aspects of
the production of clean rare earths up to the point where they are able to be received by a permanent magnet
manufacturer. We expect that by approaching this effort under one company we will be able to capture
synergies, reduce costs and expedite time to market.
Aclara’s patented extraction of heavy rare earths is quite unique, considering its low carbon footprint, very
high levels of water recirculation (>95%) and circular economy principles. It does not involve blasting,
crushing, or milling, and it does not generate any solid or liquid residues , thus eliminating the need for a
tailings storage facility. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium
sulfate. Further, harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated
within the Aclara flowsheet. Finally, the Company aims to revegetate all impacted areas.
About Aclara
Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral
resources hosted in Ion -Adsorption Clay deposits. The Company currently has two projects under
development: the Penco Module in the Bio-Bio Region of Chile, and the Carina Module in the State of Goiás,
Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. It does not involve
blasting, crushing, or milling, and therefore does not generate tailings, thus eliminating the need for a tailings
storage facility. The extraction process developed by Aclara minimizes water consumption through high levels
of water recirculation made possible by the inclusion of a water treatment facility within its patented process
design. The ionic clay feedstock is amenable to leaching with a common fertilizer, ammonium sulfate. Further,
harmful levels of radionuclides, typical of hard rock rare earth deposits, are not concentrated within the Aclara
flowsheet.
Simultaneously, alongside the development of the Carina and Penco projects, the Company intends to identify
and evaluate further opportunities to increase future production of heavy rare earths. This will involve
greenfield exploration programs and the development of additional projects within the Company's concessions
in Brazil, Chile, and Peru.
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 the Company’s corporate strateg y; expectations as to activities conducted in connection with
the Carina Module and Penco Module, timelines for completion and the success, effect or outcomes resulting
therefrom; the development of a separation facility and the related contracts and studi es in relation thereto;
the development and success of the Company’s vertical integration strategy; and plans as to expenditures,
investments, and use of capital and financial resources in the near and long term. Forward-looking information
is based on a n umber 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, the factors
discussed under “Risk Factors” in the Company’s annual inf ormation form dated as of March 22, 2024 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
news release is provided as of the date of this news 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:
Ramon Barua
Chief Executive Officer