- Mining company Hochschild Mining unveiled plans to demerge shares of its subsidiary Aclara Resources and list the latter's shares on the Toronto stock exchange.

Following the demerger, Hochschild Mining's stake in Aclara, a development-stage rare earth mineral resources company, would fall to 20% from 80%.

Aclara intended to conduct a concurrent initial public offering of the Aclara shares to raise additional funds to 'advance its exploration and development activities and for working capital and general corporate purposes,' the company said.

After completion of the demerger, Ramon Barua would be stepping down as the chief financial officer of the company to assume the role of chief executive officer of Aclara.

Eduardo Hochschild would be appointed as chairman, and Eduardo Noriega, currently head of finance, would succeed Barua as CFO.

'Although the process relating to the Aclara IPO and Listing is currently at an early stage, the company has decided to proceed with obtaining approval from Shareholders for the Demerger Dividend, which will be required in order for the demerger and the Aclara IPO and listing to proceed,' it added.

Story provided by