Aclara Resources (TSX:ARA) has formed a joint venture with Japan Organization for Metals and Energy Security (JOGMEC) to explore ionic clay rare earth deposits in Brazil.
Under the agreement, JOGMEC will solely finance up to US$3 million ($4.15 million) of exploration expenditures over a three-year earn-in period. The Japanese organisation may also elect to contribute an additional US$1.5 million, extending the earn-in period by one year.
Upon satisfying its funding commitments, JOGMEC will have the option to acquire a 30% participating interest in one of Aclara’s exploration projects in Brazil. Aclara notes its flagship Carina Project will remain outside the JV and continue to be 100 per cent owned by Aclara.
Following completion of the earn-in, JOGMEC will have the right to purchase production equivalent to its participating interest, plus an additional 10% of the project’s future production, on commercial terms. The organisation may also assign its participating interest to one or more Japanese companies, subject to JV terms.
Aclara will serve as operator during the earn-in period.
CEO Ramon Barua says the partnership combines Aclara’s exploration experience with JOGMEC’s global expertise in mineral exploration and project evaluation.
“This joint venture brings together two organisations that share a long-term commitment to building resilient rare earth supply chains through technical excellence and responsible resource development,” Barua says.
“JOGMEC’s decision to enter this joint venture follows an extensive technical review of Aclara’s exploration portfolio, providing independent validation of the quality and potential of the company’s assets.”
The agreement creates a pathway for future Japanese offtake through JOGMEC’s priority rights.
Aclara Resources is a development-stage mineral resource developer focused on its rare earths projects in Brazil and Chile, which use its patented Circular Mineral Harvesting technology.
Write to Paula Fabe at Mining.com.au
Images: Aclara Resources
