Viridis Mining and Minerals (ASX:VMM) has signed 2 binding agreements to secure 100% of additional mining rights within and adjacent to the Poços De Caldas Alkaline Complex in Minas Gerais, Brazil.
The $63.83 million market capitalisation company says the mining rights are contiguous to its currently held Colossus rare earth element (REE) Project and cover an additional 101km-square, taking Viridis’ total landholding to 228.63km-square.
Chief Executive Officer (CEO) Rafael Moreno says the mining rights have been secured while it progresses a maiden Mineral Resource Estimate and next phase of project advancement at Colossus.
The CEO also states Viridis is on track to becoming “the second major IAC project within the complex”.
“I’m extremely excited about the potential opportunity these new tenements present the Company and how they support the overall development strategy for the Colossus IAC rare earth project.”
Viridis reports 3 of the licences (5460/1954, 804675/1975, and 802917/1978) comprise the Tamoyo prospect, which is expected to strengthen the company’s dominant position in the northern part of the complex.
Samples gathered previously at Tamoyo in previous exploration demonstrate ‘remarkable’ REE grades, including 3,848 parts per million (ppm) and 2,019ppm total rare earth oxide (TREO), respectively.
The new mining rights also include the Bandeira prospect — a ‘district-scale’ opportunity consisting of 4 exploration licences and 2 applications — on the eastern edge of the Alkaline complex.
Previous auger drilling by the vendors within the ‘leached layer’ at Bandeira has returned 3.6m @ 1,924ppm TREO.
Key terms of the agreement include Viridis providing the vendor one (Minas Rio Mineradora) a total of up to US$1.5 million via an issue of performance rights. These will convert to fully paid ordinary shares in the company, if Viridis delineates between 100-200 million tonnes of inferred REE resources with an average grade of no less than 1,500ppm total rare earth oxide (REO) at Bandeira es.
Meanwhile, terms for vendor 2 (Frigorifico Tamoyo Sociedade) include Viridis providing the vendor with a non-refundable cash payment of US$100,000 and US$1,000 per hectare for the Tamoyo prospect licences.
Upon settlement of the acquisition, Viridis proposes to issue vendor 2 up to US$1.5 million via the issue or performance rights for every 1 million tonnes of inferred REE resources delineated at the same grades as outlined for the Bandeira prospect.
Moreno says: “I’m thrilled we have secured these additional mining rights, with the Tamoyo Prospect already showing exciting results from grab samples, and Bandeira representing an extremely large and low cost opportunity for Viridis to explore in an adjacent alkaline complex.
The deal terms are highly favourable and provide Viridis with great optionality for these tenements.”
Viridis Mining and Minerals is a resource explorer and developer with assets in Brazil, Canada, and Australia.
As of 30 September 2023, Viridis Mining and Minerals had $628,000 cash and cash equivalents at hand, according to its latest quarterly report. However, the company completed a capital raise of $3.1 million prior to the end of the quarter.
