(Alliance News) - Hochschild Mining PLC on Friday announced pricing plans for Aclara Resources when it splits from the group and floats on Canada's Toronto Stock Exchange next week.
Aclara will issue 35 million shares in the initial public offering at a price of CAD1.70 per share to target a raise of CAD59.5 million, about GBP35.0 million. The market capitalisation of Aclara would be CAD276.4 million based on the offering price.
In mid-October, Hochschild had said it planned to demerge 80% of Aclara, and retain a 20% stake after the demerger is completed by the end of 2021. Aclara is currently focused on the development, and future construction and operation, of Penco Module in Chile, which will aim to produce a rare earth concentrate through a processing plant that will be fed by clays from nearby deposits.
Hochschild, which is a silver and gold miner in South America, will retain a 20% stake in Aclara after the listing, which is expected to occur on Friday next week.
Hochschild Chair Eduardo Hochschild will buy 37.7 million Aclara shares in the float for a total price of around CAD64.0 million.
The miner's shares were down 0.2% at 127.70 pence each on Friday morning in London.
By Will Paige; willpaige@alliancenews.com
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Hochschild (HOC)