Aclara Secures $5M U.S. Backing for Brazil Rare Earth Project

Aclara Secures $5M U.S. Backing for Brazil Rare Earth Project

Aclara Resources Inc. (TSX: ARA) announced that the U.S. International Development Finance Corporation (DFC) has committed up to US$5 million to advance its Carina heavy rare earths project in Goiás, Brazil. The funding will primarily support a full feasibility study, a critical milestone as the company works toward establishing a sustainable Western supply chain for rare earths.

Under the terms, the Project Development Funds may be converted into equity if Aclara raises at least US$50 million in a single financing round, or US$75 million through multiple financings within 12 months. Upon such a financing event, DFC will also hold a preferential option to directly provide or arrange additional investment for the project’s construction.

Ramón Barúa, Aclara’s Chief Executive Officer, said:

“We are deeply honored to have been selected by the U.S. DFC as a recipient of the Project Development Funds. This initial investment is not only a validation of Aclara's strategy, but also an important first step toward a larger commitment from DFC once we complete the feasibility study for the Carina Project, which is already underway and expected to be finalized early next year.
Having such a strong partner helps de-risk the development of our project in Brazil while providing additional confidence to potential off-takers currently evaluating Aclara as a long-term supplier of heavy rare earths. The investment also highlights the strategic importance of heavy rare earths to the United States and the critical need to secure them from sustainable and reliable sources.

We are proud to welcome DFC as a partner and extend our sincere gratitude to their team for their trust and commitment. We look forward to building on this collaboration as we advance the Carina Project toward becoming a cornerstone of a resilient and sustainable Western supply chain.”

Advancing the Carina Project

The feasibility study, initiated in July 2025 and led by engineering firm Hatch Ltd., follows a pre-feasibility study set for release in September 2025. Completion is expected by the end of Q1 2026, with operations at Carina targeted for 2028.

Funds will be disbursed in stages as project milestones are achieved. Importantly, the DFC funds carry no interest and no security interest, and repayment would only be triggered upon a qualifying financing event.

Mine-to-Magnet Strategy

The Carina Project is part of Aclara’s broader “mine-to-magnet” strategy, which spans multiple geographies. The company is also advancing the Penco Module in Chile and developing a U.S.-based rare earth separation facility that will act as the midstream link in its supply chain.

In Brazil, Aclara operates a mixed rare earth carbonate pilot plant using its proprietary Circular Mineral Harvesting process, a low-impact technology that recycles over 95% of water and 99% of reagents, eliminates tailings, and enables full site revegetation.

In the U.S., Aclara has completed conceptual engineering for a separation facility with waste-minimization and zero-liquid-discharge systems. A collaboration with Virginia Tech will host a pilot plant for technology validation, process optimization, and workforce training.

Downstream, Aclara is building a 50/50 joint venture with CAP S.A., Chile’s leading steelmaker, to produce rare earth metals and alloys. A strategic alliance with Vacuumschmelze, a global magnet manufacturer, further integrates the company into magnet production, positioning Aclara as one of the only fully ESG-compliant “mine-to-magnet” suppliers worldwide.

Strategic Importance

Heavy rare earths are essential for the production of permanent magnets used in electric vehicles, wind turbines, defense technologies, and advanced electronics. By securing U.S. government support, Aclara is positioning itself as a key player in efforts to reduce reliance on Chinese supply chains and ensure that Western nations have reliable access to these critical minerals.

The DFC investment underscores a growing geopolitical focus on critical mineral independence, highlighting Aclara’s role in shaping a resilient and sustainable rare earths supply chain for the future.

Originally reported by Web Disclosure.