Viridis Mining and Minerals (ASX:VMM) has secured up to US$120 million ($168.64 million) in strategic equity funding to advance its Colossus Rare Earth Project in Minas Girais, Brazil from Definitive Feasibility Study (DFS) to execution.
The equity funding comprises a US$75 million investment from One Investment Management (OneIM), an accelerated US$5 million tranche from existing investors ORE Investments and Régia Capital, and US$40 million from institutional shareholders.
Combined with approximately US$14 million in existing cash and a further US$20 million available under the Ore/Régia arrangement, Viridis has identified about US$154 million of equity funding sources.
Under the OneIM agreement, the first tranche involves around 16.18 million ordinary shares at $3.79 per share to raise approximately $61.3 million, giving OneIM a 9.9% stake. The second tranche of about $44.8 million remains subject to customary conditions, including Foreign Investment Review Board approval and shareholder approvals.
ORE and Régia have agreed to accelerate their next US$5 million tranche at $3.38 per share.
DFS confirms Colossus is good to go
Viridis’ recently completed Colossus DFS confirms project bankability and execution readiness, with a pre-tax net present value (NPV) of US$1.87 billion. At current spot pricing, the study demonstrates an after-tax NPV of US$2.79 billion and an internal rate of return of 36.4% over a 25-year production target.
Managing Director Rafael Moreno says the completion of the DFS represents a ‘defining’ milestone for the company.
“We have deliberately developed the DFS with bankability at its core, providing a robust foundation for completing project financing and advancing towards [a] final investment decision,” Moreno says.
“Following completion of the DFS, we have now secured sufficient funding sources to fully address the indicative equity requirement for Colossus, materially de-risking the project’s funding pathway as we transition into execution.
“With the equity requirement addressed, our focus is now firmly on execution, finalising binding offtake and senior debt, appointing the EPCM contractor and placing orders for key long-lead equipment.”
The study establishes initial development capital of US$405 million, excluding contingency, with total pre-production capital estimated at US$ 449 million.
Colossus will process 5 million tonnes per annum of run-of-mine feed to produce approximately 2,967 tonnes annually of magnetic rare earth oxides (MREO).
Project economics are underpinned by a 200.1 million tonne ore reserve at 2,894 parts per million total rare earth oxides. The demonstration plant achieved average MREO recoveries of 78.1% during July operations, outperforming DFS assumptions of 76–78%.
En route to first production
The company has appointed Goldman Sachs and Cutfield Freeman & Co as financial advisers for debt financing. Non-binding support letters have also been received from Export Finance Australia for up to US$50 million and Bpifrance, as well as a letter of interest from Export Development Canada for possible support of up to US$100 million.
Placement settlement is scheduled for 27 August 2026, with ASX quotation of tranche one shares expected on 28 August 2026.
Viridis is targeting receipt of lender term sheets by the end of September 2026, a final investment decision in Q4 2026, and first production in the second half of 2028.
Viridis Mining and Minerals is a resource explorer and developer with assets in Brazil, Canada, and Australia.
Write to Paula Fabe at Mining.com.au
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