Rare earths junior Aclara Resources, a spinoff from Hochschild Mining, has been approved for a listing on the TSX and expects to begin trading on the bourse on December 10, it said on Thursday.
Aclara will issue 35-million shares of the company at C$1.70 each for gross proceeds of C$59.5-million.
In addition, Hochschild Mining and Eduardo Hochschild’s investment firm Pelham Investment along with certain other individuals, will purchase about 39.35-million shares at the offering price for a further C$66.90-million.
Pelham has also committed to purchase 9.86-million shares as part of the offering, which represents 28.2% of the common shares offered under the offering.
Hochschild in October announced the demerging of its rare earths unit. Aclara, previously known as Biolantanidos, owns a strategic land package of mineral concessions in Chile and is initiating the development of its resources through the Penco Module project.