Aclara Provides Update ON Corporate Strategy
ACLARA PROVIDES UPDATE ON CORPORATE STRATEGY
TORONTO, ON, May 10, 2022 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased
to provide an update on its corporate strategy following the withdrawal of its application for an environmental
impact assessment (“EIA”) of the Penco Module (the “Project”) located in Chile. The updated strategy aims
to i) position the Company to deliver a more robust EIA application, ii) strengthen and expand relationships
with local stakeholders, and iii) prioritize exploration activities to define new potential modules. The Company
has decided to postpone the advancement of the feasibility study on the Project until it has additional clarity
on the permitting process.
Aclara’s CEO, Ramon Barua, commented: “We are pleased to announce a revised strategy for Aclara that
will continue advancing the Project while targeting new ionic clay deposits hosted within our claims. The recent
withdrawal of the EI A application is expected to result in a two -year delay to the anticipated first production
date of the Project and we intend to maximize the use of that additional time. First, we will improve on our
environmental baseline and refile the EIA application as soon as possible; second, we will prioritize enhancing
our relationship with our local stakeholders; third, we will optimize our metallurgical process; and, last but not
least, we will seek to find more ionic clays in other locations to actively pursue our goal of con verting Aclara
into a multi-module company. Our strategy, combined with the competitive advantage of owning an ionic clay
deposit with unique characteristics, an environmentally friendly metallurgical process and the robust demand
behind the coveted rare earths that our planet needs for advancing decarbonization initiatives, will provide the
pillars that support Aclara as a successful, environmentally sound and responsible rare earths company.”
Revised EIA Application
The Company is advancing a revised and more robust EIA application. The Company has retained a team
of environmental consultants and other advisors from well renowned institutions in Chile , including
Universidad de Chile, FerradaNehme, Gestión Ambiental Consultores, Teco, among other specialists in flora
and fauna. The main focus will be directed at completing baselines studies relating to flora and fauna to
address the issues raised by the Environmental Assessment Authority ( the “SEA”) during the original EIA
process. As part of the new process, the Company intends to engage in closer communications with the
SEA and other relevant authorities to agree on key evaluation metrics as well as protection and
compensation measures. The Company will use the work completed as part of the original EIA to accelerate
the completion of the studies and aims to file a revised EIA application during the second quarter of 2023.
Social License
The Company has defined a thorough plan to increase its local presence, to enhance local communities’
perception of the Project, and to materially increase its social contribution activities that both benefit and are
desired by the local community . The Company is fortifying its local team by hiring locally based senior
executive focused on corporate affairs and engaging a local communication firm to better connect with local
stakeholders.
Exploration
The Company has increased its exploration budget from US$5.4 million to US$6.2 million in order to undertake
a more aggressive drilling plan and schedule.
The Company has incorporated a new brownfield exploration area - “Alexandra Poniente” - as part of the
Project, which offers clea r potential to increase the resource base of the Project. Exploration r esults are
expected at the beginning of Q3 2022.
In an effort to define potential new modules, the Company will be carrying out drilling campaigns in two new
areas - “Veronica” and “Petronila” - and expects to announce exploration results towards the end of 2022. The
drilling campaigns are expected to consist of 10,050 metres distributed across 335 drill holes.
Feasibility Study and Pilot Plant
The Company has decided to postpone engineering activities in connection with the feasibility study until the
permitting process is more advanced. The engineering team will shift its focus to delivering the engineering
modifications needed to align with the permitting process.
The Company is also currently assessing change of its approach to the pilot plant, from it being contracted
as a service to it being owned by the Company . Piloting activities were programed to be limited in scope,
however, the new timeline offers an opportunity to enhance the program by building the plant in-house. This
strategy will allow Aclara to own a plant to continue improving its recoveries and flowsheet. The new budget
associated with this strategy is under review and is expected to be reviewed by the Board in August 2022.
Updated Budget
While t he Company is maintaining the total amount of its budget for 2022 at US$25.7 million , it will be
reallocating resources with a reduction in engineering expense s and a commensurate increase in its
exploration efforts. The key aspects of the updated budget are detailed below:
▪ Activities in connection with the Penco Module: US$9.3 million
• Engineering and piloting: US$5.3 million
• Brownfield exploration and infill drilling: US$1.4 million
• Permitting and ESG-related expenditures: US$2.1 million
• Surface land purchase and mining concessions: US$0.4 million
▪ Exploration and mining concessions in connection with potential new modules: US$6.2 million
▪ Administrative expenses, personnel and general corporate purposes: US$10.2 million
Key Milestones / Targets for the Penco Module
As a result of its updated corporate strategy, the Company has also updated the expected milestones and
targets relating to the development of the Project, which are as presented below:
▪ EIA Filing: Q2 2023
▪ EIA Approval: Q3 2024
▪ Feasibility Study Filing: Q1 2025
▪ Construction: Q1 2025
▪ Production: H1 2026
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 securities
legislation, which reflects the Company’s current expectations regarding future events, including statements
with regard to the permitting process, the revised EIA application, on-going and future discussions and consultations
with relevant authorities and advisors, advancing the exploration and development of the Penco Module, the
exploration of potential new modules, the completion of a feasibility study on the Penco Module, plans and strategies,
and general financial position matters and funding related to the Company, and key milestones and targets relating
to the development of the Penco Module. Forward-looking information is based on a number of assumption s
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 operating in a foreign jurisdiction,
including political and economic problems in Chile ; 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 licences or renew them; compliance with environmental
regulations can be costly; actual production, capital and operating costs may be different than those
anticipated; the Company may be not able to successfully complete the construction and st art-up of mines
and new development projects; risks related to mining operations; and dependence on the Penco Module.
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 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