Viridis Mining and Minerals (ASX:VMM) is set to obtain the rare earths rights to 12 new licences in and around the Poços De Caldas Alkaline Complex in Brazil.
The company, which has a market capitalisation of $23.89 million, says these licences fall proximal or contiguous to its Colossus Project.
The new licences include 4 research authorisation licences and 8 mining request licences. All up, the purchase will increase Viridis’ total landholding in the area to 90.69km-square.
Under the agreement to acquire these new licences with sellers Varginha Mineração and associated parties, the new areas will now form part of the total land area to which a 4.75% royalty is payable on the total rare earth oxide (TREO) + yttrium extracted from the Colossus Project, payable once US$2 million in royalties have accrued from production at the project.
The new licences have been incorporated into an existing agreement between Viridis and the Varginha parties, meaning the company will not pay any additional consideration for the extra landholding.
Further, Viridis will not raise any additional capital to support exploration in the new areas. Instead, it will reallocate the funds put towards its current exploration budget on the Colossus Project to the extent necessary to accommodate the additional licences.
Commenting on the new licences, Viridis Mining and Minerals Executive Chairman Agha Shahzad Pervez says: “The acquisition of these new areas exemplifies the Vendors’ commitment to partner with Viridis in becoming the second major Ionic Rare Earth player in the Poços De Caldas Complex.
The team is fortunate to have established a strong partnership with Varginha and garnered their support and expertise for the exploration and development of the Colossus Project. The company is working aggressively on a comprehensive exploration strategy and, in parallel, will continue to evaluate new areas of interest in the Poços De Caldas Alkaline Complex.”
“The company is working aggressively on a comprehensive exploration strategy”
Viridis is currently compiling all available geological information and has begun drill planning for the project.
Subject to shareholder approval, the company intends to immediately initiate a comprehensive exploration program at Colossus. This will include mapping, sampling, metallurgical studies, and exploration drilling to establish a ‘significant’ maiden JORC-compliant resource.
Further, the company notes all 12 licences are in good standing and will be included in the upcoming exploration programs.
Viridis Mining and Minerals is a resource exploration company with assets in Brazil, Canada, and Australia. The company’s portfolio of assets includes the Colossus, South Kitikmeot, Boddington West, Bindoon, Poochera, Smoky, Ytterby, and Star Lake projects.
Images: Viridis Mining and Minerals