- Hochschild Mining took full ownership of the BioLantanidos deposit after acquiring the remaining 93.8% stake for $56.3m.

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

The project consisted of ionic clay resources, similar to those found in China, but ‘very different from most other rock-based rare earth projects worldwide,’ and they also represented 'the lowest cost sources of rare earths in the world,' the company said.

‘Although the amount invested represents a small percentage of Hochschild's current precious metal revenue and market capitalisation, it provided significant optionality in a market expected to grow exponentially’ the company said.

‘Rare earths are essential in several technological components with increasing global demand and some are critical in the manufacturing of permanent magnets used in electric vehicles, wind turbines and drone motors amongst other things,’ it added.

Although the company had prepared a feasibility study, it is Hochschild's intention to revise the study over the next 18 months as well as appointing a dedicated management team to oversee development of the project, the company added.

'Although BioLantanidos owns approximately 72,000 hectares of concessions, an initial modular project has been developed in the Penco area in an area of 300 hectares, approximately 15km from Concepción in Chile and with excellent access to infrastructure and energy. Other modules are expected to be evaluated in the future, providing significant low capital expenditure growth potential,’ said Ignacio Bustamante, Chief Executive Officer.

At 9:09am: [LON:HOC] Hochschild Mining PLC share price was -3.55p at 200.05p

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