Aclara forms JV with Japan's JOGMEC to find new rare earth deposits in Brazil
TSX-listed rare earths developer Aclara Resources on September 8 announced a joint venture (JV) with the Japan Organization for Metals and Energy Security (Jogmec) to explore and advance new ionic clay-hosted heavy rare earth deposits in Brazil, giving Japan a potential new pathway to secure future supplies of strategically important, rare earths.
Under the agreement, Jogmec will solely fund up to $3-million in exploration over three years, with an option to contribute an additional $1.5-million.
Upon completing its funding commitments, Jogmec can acquire a 30% interest in one of Aclara’s exploration projects in Brazil and secure rights to purchase its share of future production plus an additional 10%.
Aclara’s flagship Carina project remains 100% owned by Aclara and outside the JV.
The partnership is particularly significant because Jogmec, a Japanese governmental organisation charged with strengthening Japan’s security of supply for strategic natural resources, entered the JV following an extensive technical review of Aclara’s Brazilian exploration portfolio.
Aclara CEO Ramón Barúa says Jogmec’s decision provides “independent validation of the quality and potential of the company’s assets”, while creating “a natural pathway for future Japanese offtake".
The agreement expands Aclara’s relationships with major government, academic and research institutions as it develops a diversified heavy rare earth supply chain spanning resource development, separation and advanced processing.
