07:47 AM EDT, 03/13/2024 (MT Newswires) -- Aclara Resources Inc. ( ARAAF ) on Wednesday said it has entered into an investment agreement with CAP S.A.), a publicly listed company on the Chilean Stock Exchange. CAP will make a US$29 million strategic investment )in exchange for a 20% equity participation) in REE Uno SpA, Aclara's Chilean subsidiary, which owns the Penco Module.

Under the terms of the Investment Agreement, CAP also has an option to invest an additional US$50 million in REE Uno and a three-year option to subscribe a 19.9% interest in Aclara. The parties have agreed to form a joint venture company to develop metals and alloys for the rare earths permanent magnet industry.