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Hochschild fully acquiring Chilean rare earth project in US$56.3M deal

Hochschild Mining PLC is acquiring 93.8% of the BioLantanidos ionic clay rare earth deposit in Chile for US$56.3 million to consolidate its ownership as it moves into the rare earth market.

BioLantanidos is a private Chilean company controlled by private fund FIP Lantanidos, managed by private equity firm Mineria Activa SpA.

Hochschild had invested US$2.5 million in the project during 2018 and early 2019 in exchange for a 6.2% stake with an option to increase ownership.

CEO Ignacio Bustamante said the company will maintain its focus on its core precious metal strategy, but the acquisition "gives us the potential to acquire a unique deposit in a key industry with expected exponential growth.

BioLantanidos owns about 72,000 hectares of concessions, and an initial modular project covering 300 hectares has been developed in the Penco area.

BioLantanidos has built a technically and commercially viable pilot plant on the project site since Hochschild's initial investment, according to an Oct. 2 release.

Hochschild said it plans to revise a feasibility study on the project over the next 18 months and appoint a dedicated management team to oversee development.