ACLARA COMPLETES BASIC ENGINEERING FOR ITS U.S. HEAVY RARE EARTHS SEPARATION FACILITY IN LOUISIANA

Aclara Resources Inc. (ARA) has completed basic engineering for Project Dynamo, its planned heavy rare earths separation facility in Louisiana. The project scope has expanded to include separation circuits for Yttrium, Gadolinium, and Samarium, increasing total production capacity by approximately 157%. Consequently, the Class 3 capital estimate rose to US$494 million from a previous US$277 million conceptual estimate, reflecting the expanded scope and higher engineering definition.

Financial metrics associated with the project have improved significantly, with an after-tax net present value (NPV) of US$773 million, an internal rate of return (IRR) of 27.9%, and a payback period of 2.6 years. Operating costs have been reduced to US$26/kg of oxide, representing a 32% reduction from the prior US$38/kg estimate. Site preparation is targeted for Q1 2027, with construction completion scheduled for H2 2028. The Louisiana state air permit was secured in September 2026.

A non-binding Letter of Interest for up to US$750 million was issued by the U.S. Export-Import Bank (EXIM). Additionally, a Virginia Tech demonstration plant successfully validated NdPr oxide specifications, with Dy and Tb oxide production targeted for Q4 2026. An AI-enabled digital twin is being developed with Argonne National Laboratory to optimize process performance.

Aclara Resources Inc. (ARA) has completed basic engineering and expanded the scope of its Louisiana separation facility, transitioning the project from a conceptual stage to a defined execution plan. This development materially de-risks the facility and significantly enhances the project's economics, driven by a 32% reduction in operating costs and a 157% increase in capacity. These improvements push the net present value (NPV) to $773 million and the internal rate of return (IRR) to 27.9%.

The expanded product mix adds yttrium (Y), gadolinium (Gd), and samarium (Sm), diversifying revenue streams beyond magnetic rare earths and targeting markets in aerospace, power generation, and AI infrastructure. While the capital estimate has increased to $494 million, this reflects higher engineering definition and expanded scope rather than cost overruns, aligning with standard project development progression.

An EXIM Letter of Interest provides a clear financing pathway, though it remains non-binding and subject to customary due diligence. The news confirms execution progress and validates the integrated mine-to-alloy strategy, supporting long-term value creation without introducing new fundamental risks.

Aclara Resources Inc. (ARA) is developing a vertically integrated, mine-to-alloy rare earth supply chain. The company’s flagship projects include the Carina Project, featuring ionic clay deposits in Brazil, and the Penco Module, which holds similar ionic clay deposits in Chile. Additionally, the company operates Project Dynamo, a heavy rare earth separation facility located in Louisiana, USA.

The company utilizes a proprietary "Circular Mineral Harvesting" technology that avoids blasting, crushing, or milling, recirculates more than 93% of water, and generates zero tailings. This strategy focuses on producing high-purity heavy rare earths, including dysprosium, terbium, and neodymium-praseodymium, as well as non-magnetic rare earths such as yttrium, gadolinium, and samarium. These materials are intended for use in permanent magnets, electric vehicles, robotics, and AI infrastructure.

To validate its technology and develop downstream alloy production, Aclara Resources has secured key partnerships with Virginia Tech, Argonne National Laboratory, CAP S.A., and VAC.