Mining News
Hochschild spins out rare earth company
Precious metal miner Hochschild Mining (LSE: HOC) is demerging to create a stand-alone business focused on rare earths, Aclara Resources.
Aclara is a development-stage rare earth mineral resources company with a land package of mineral concessions in Chile, according to a press release from Hochschild. It's Penco Module covers a surface area of approximately 600 hectares and contains ionic clays that are "rich in rare earth elements."
Hochschild will retain a 20% interest in Aclara. The new rare earth company is launching an IPO to raise funds.
Rare earth companies have been on a run due to energy transition and the desire to diversify supply sources in the West. Australia's Lynas Rare Earth is up 171% in the past year.
Hochschild chair Eduardo Hochschild said Aclara will gain focus after it is demerged.
"This is the logical next step forward for our rare earth business. It is our belief that, as two standalone businesses, both Hochschild and Aclara will have the greatest potential for delivering long-term value creation. Each will have their own strategic focus on their respective products, their own dedicated management teams, separated access to capital and an independent valuation whilst maintaining a strategic relationship that will allow Aclara to benefit from Hochschild's track record on project execution and ESG. Furthermore, we believe that current and future Hochschild shareholders will also benefit from retaining a meaningful stake in a business that offers an exciting proposition in a high growth market."
In 2020 Hochschild produced 9.8 million attributable ounces of silver and 175 thousand attributable ounces of gold.
