Aclara Provides Mid-Year Results
ACLARA PROVIDES MID-YEAR RESULTS
TORONTO, ON, August 08, 2022 – Aclara Resources Inc. (“ Aclara” or the “ Company”) (TSX: ARA) is
pleased to announce its financial results for the six months ended June 30, 2022. Details of the Company's
financial results are contained in the unaudited interim consolidated financial statements and management's
discussion and analysis, which will be available under the Company’s corporate profile on SEDAR at
www.sedar.com and on the Company's website at www.aclara-re.com. All amounts are expressed in United
States dollars unless otherwise stated.
Highlights
• Strong cash position of $78.255 million as at June 30, 2022, comprised of cash and cash equivalents
of $51.217 million and shot-term deposits of $27.038 million
• Corporate strategy in place aimed to deliver a more robust EIA application relating to the Penco Module
(the “Project”), strengthen and expand our relationships with local stakeh olders, and prioritize
exploration activities to define new potential modules
o Preparation of the new EIA application in progress and baseline studies for the autumn season
successfully completed
o Perception study to better understand the opinions and principal motivations of the community
and local stakeholders in relation to the Project completed
o Greenfield drilling campaign started at two new sites in Chile, one to the north of Penco and the
other to the south
• Positive results from a new brownfield exploration area - “Alexandra Poniente” – incorporated as part
of the Project, which offers clear potential to increase the mineral resource base
• Successful laboratory test work results confirm closed circuit flowsheet metallurgical recoveries
presented in the Amended and Restated NI 43 -101 Technical Report - Preliminary Economic
Assessment for the Penco Module Project (“PEA”) and ensure the chemical stability of the residues,
which allowed zero liquid and solid discharge along t he processing flowsheet and made viable the
recirculation of more than 95% of water used in the process
• Aggregate investment for the Project in evaluation and exploration assets (“E&E”) and property plant
and equipment (“PP&E”) for the six months ended June 30, 2022 totalled US$8.297 million and 0.041
million, respectively
Outlook for H2 2022
The Company’s focus in H2 2022 includes, principally:
• Advancing the new EIA application by both continuing the development of the required baseline studies
(winter season in progress) and updating engineering to accommodate recent improvements. New EIA
is expected to be filed by Q2 2023
• Working on social contributions that both benefit and a re desired by the local community , as well as
strengthening relationships with local stakeholders
• Continuing g reenfield exploration drilling campaigns with the goal of seeking additional viable
development modules for production
• Updating the Mineral Resource Statement of the Project during Q4, 2022
• Completing the engineering and design for pilot plant that will demonstrate at semi-industrial scale the
viability of our flowsheet
• Continuing with the communication activities to highlight the attributes of the Project to both international
and local stakeholders
Income Statement
Three months ended June 30 Six months ended June 30
(in thousands of US$) 2022 2021 2022 2021
Exploration expenses 237 79 473 107
Administration expenses 1,480 4 2,314 57
Other (expenses) income
- 26 - (264)
Financial costs
4 1 9
2
Financial income (88) - (99) -
Exchange differences 125 - 58 -
Loss from continuing operations before income tax 1,758 110 2,755 (98)
During the six months ended June 30, 2022, the Company incurred higher net losses from continuing
operations compared to the same period the year before, as a result of the Going Public Transaction and the
demerger from Hochschild Mining, which led to increased expenses related to the management and
standalone operations of the Company, as well as to comply with obligations as a Canadian reporting issuer
and TSX-listed company.
Evaluation and Exploration Assets
(in thousands of US$) Total
Balance at January 1, 2021 70,929
Additions 6,312
Foreign exchange effect (1,682)
Balance at June 30, 2021 75,559
Additions 5,349
Foreign exchange effect (10,775)
Balance at December 31, 2021 70,132
Additions 8,297
Foreign exchange effect (7,556)
Balance at June 30, 2022 70,873
Accumulated amortisation and impairment
Balance at January 1, 2021 8
Balance at June 30, 2021 8
Balance at December 31, 2021 7
Balance at June 30, 2022 96
Net book value as at June 30, 2021 75,551
Net book value as at December 31, 2021 70,125
Net book value as at June 30, 2022 70,777
In accordance with accounting principles under IFRS of the capitalization of E&E assets, costs of mineral
properties are capitalized as E&E assets on a project-by-project basis. As at June 30, 2022, the Company’s
principal business included the development of the Penco Module. The Company capitalizes expenses related
to brownfield exploration and infill drilling, metallurgical testing and process design, engineering of the mine,
processing plant and project infrastructure, permitting and administration activities and services.
Liquidity and Capital Resources
As at June 30, 2022, the Company had a cash balance of $51.217 million and short-term investments in term
deposits of $2 7.038 million, totalling cash availability in the aggregate amount of $ 78.255 million. The
Company has working capital needs of US$1.6 million as at June 30, 2022. The Company’s present cash
resources are sufficient to meet all its current liabilities and administrative and overhead expenses for the next
eighteen months.
About Aclara
Aclara is a development-stage rare earth mineral resources company located in Chile. Aclara is initiating the
development of its resources through a project called the Penco Module (the “Penco Module”), which covers
a surface area of approximately 600 hectares and which has ionic clays that are rich in rare earth elements.
Aclara is currently focused on the development and on the future construction and operation of the Penco
Module, which will aim to produce a rare earth concentrate through a processing plant that will be fed by clays
from nearby deposits. Aclara’s unique extraction process offers several advantages such as: no blasting,
crushing or milling required ; no tailings dam ; minimal water consumption due to a high level of water
recirculation; amenable leaching with a fertilizer; and no radioactivity.
Forward-Looking Statements
This news release contains “forward -looking information” within the meaning of applicable securiti es
legislation, which reflects the Company’s current expectations regarding future events, including statements
with regard to the Company’s corporate strategy; expectations as to activities conducted in connection with
the Project, timelines for completion and the success, effect or outcomes resulting therefrom; 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 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, the factors discussed under “Risk Factors” in the Company’s annual information form dated as of March
30, 2022 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