Aclara Resources, a mining company focused on rare earth elements, saw its share price edge higher on Wednesday after the firm confirmed it is in discussions with United States officials regarding potential funding for its Penco rare earths project in Chile. The stock gained approximately 3.2% in afternoon trading on the TSX Venture Exchange, though volumes remained modest.
The company, which also has a secondary listing on the London Stock Exchange, is developing the Penco module in southern Chile, a deposit rich in heavy rare earth elements — materials critical for electric vehicle motors, wind turbines, and defence technologies. Aclara is pursuing a processing method that it says avoids radioactive by-products, a common challenge in rare earth mining.
The talks with US agencies come as Washington intensifies efforts to secure alternative sources of critical minerals, aiming to reduce dependence on China, which currently controls around 60% of global rare earth mining and nearly 90% of processing. Analysts at SP Angel noted that “any progress on funding for Western rare earth projects is a positive signal for the sector, though the path to production remains lengthy.”
For UK investors, Aclara represents a small but speculative play on the critical minerals theme. The company has yet to generate revenue and is pre-production, meaning any funding deal would be a significant milestone. The broader London-listed mining sector has been under pressure this year amid concerns over Chinese demand, but rare earth stocks have attracted interest due to government support for supply chain diversification.
Shares in Aclara Resources UK listing were up around 2.8% at 14.50p by late afternoon, but remain well below their 12-month high of 22.00p. The company is expected to provide further updates on the funding discussions in the coming months.
Source: Aclara Resources press release, market data from Refinitiv.