Shares of Aclara Resources Inc (TSX: ARA) climbed 1.4% on Monday as the company confirmed it is in talks with the US International Development Finance Corporation (DFC) over possible backing for its Chilean rare-earth project.
Chief Executive Officer Ramon Barua said the firm is aiming to replicate a $5 million DFC facility that was obtained for its Brazil project. The discussions come after DFC rule changes widened eligibility for funding to include higher-income countries, Chile among them. Barua reported that initial feedback from the US institution has been positive.
Last week, DFC Chief Policy Officer Caroline Vik met with government officials and private-sector participants in Santiago, according to company comments. Aclara representatives attended a business federation meeting at which Vik was present.
Strategy and ownership
Aclara, whose shareholder base includes the Hochschild Group and Chile's CAP SA, is pursuing an approximate $1.5 billion plan to connect Latin American mine supply with processing capacity in the United States. Management frames the initiative as part of efforts to reduce reliance on dominant suppliers of critical minerals, a policy priority highlighted by the Trump administration.
The company expects to commence extraction of heavy rare earths from a Chilean clay deposit in 2028, contingent on securing permits, funding and customer agreements. A regulatory vote on Aclara's environmental application was scheduled for Monday and the company was awaiting that outcome.
Financing model and commercial outreach
In Brazil, DFC support was structured to back the project through the feasibility phase in return for an option to invest in the project at a later stage. Barua said a comparable arrangement could be structured for the Chilean development.
Concurrently, Aclara has intensified talks with prospective buyers for magnets produced from its rare-earth output. Automakers across the United States, Europe, Japan and South Korea are listed among potential customers being engaged in those discussions.
Market reaction and next steps
Monday's share rise reflected investor attention to the potential DFC engagement and the company's broader strategy to link regional extraction with US processing. Moving forward, key milestones include the pending regulatory vote, the outcome of DFC discussions, the design of any investment option or financing package, and progress in negotiating offtake or supply agreements with magnet buyers.
Note: Planned timelines and project execution remain conditional on permits, funding and customer agreements.