Toronto-listed Aclara's stock plunged on Thursday, as the company announced that it had withdrawn the environmental impact assessment (EIA) of its Chile rare earths project to allow for time to address “unresolved matters”.
The company explained that it had not been able to satisfy two technical aspects, which relate to the protection of local flora and fauna within the mandated regulatory timetable relating to the EIA process.
“We believe that the withdrawal of the EIA application, at this time, is in the best interests of moving the project forward. The company is well-funded and can continue with the permitting process while it advances its exploration program and the feasibility study,” said CEO Ramon Barua.
Shares in Aclara fell 42% to C$0.81 a share, giving the company a market capitalisation of C$31-million.