Viridis Mining and Minerals (ASX:VMM) has signed a binding agreement to secure a 53.88km-square expansion to its Colossus Rare Earth Element (REE) Project in Minas Gerais, Brazil.
Exploration licences 832.452/2023 and 832.471/2023 are included in the expansion and together make up the Centro Sul prospect, covering 4km-square.
The vendors of these licences, Irmaos Martins Servicos E Comercio Eirel and Rafael Da Cruz Oliveira, have agreed to grant Viridis a 6-month option for an upfront cash payment of US$25,000.
Viridis Mining and Minerals Executive Chairman Agha Shahzad Pervez says this expansion presents the company with a ‘large’ amount of prospects to explore for ionic adsorption clay (IAC) REE mineralisation in the future.
“The deal terms are highly favourable and provide Viridis with great optionality for these concessions. The company remains on-track to becoming the second major IAC project within the complex and continues working diligently through its exploration strategy“
“The deal terms are highly favourable and provide Viridis with great optionality for these concessions. The company remains on-track to becoming the second major IAC project within the complex and continues working diligently through its exploration strategy.”
Viridis plans to swiftly integrate and scale its exploration programs to include due diligence on the new areas, as part of its strategic expansion efforts.
The company also plans to begin preliminary geological reconnaissance as part of its due diligence procedure on the Centro Sul prospect, which will allow Viridis to gain exploration data and understanding of the geology.
Geophysical surveys acquired from the National Mining Agency have shown a ‘significant’ level of weathering present on the southern half of Centro Sul, which offers ‘significant’ potential for the prospect to host deep bodies of clay and supergene mineralisation that can potentially host ‘high-grade’ ionic REE mineralisation.
The new areas comprise rare earths and yttrium rights across 15 exploration licences and 12 licence applications, increasing the Colossus project to 144.57km-square.
Viridis Mining and Minerals is a resource explorer and developer with assets in Brazil, Canada, and Australia. The company’s projects are prospective for rare earths, gold, critical and base minerals.
As of 30 September 2023, the company had $628,000 cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Viridis Mining and Minerals
