Viridis Mining and Minerals (ASX:VMM) has entered into 2 non-binding Memorandum of Understanding (MoU) agreements with the Minas Gerais state government and local governments to expedite approvals for its Colossus Ionic Clay Project in Brazil.
The $58.82 million market capitalisation company says Colossus was selected by the State Economic Development body, Invest Minas, as a ‘high priority’ asset for the strategic interest of Minas Gerais.
A cooperation agreement has also been signed with the local government, which plans to provide Viridis with resources, infrastructure, and logistical requirements to streamline the construction and development of Colossus.
Chief Executive Officer (CEO) Rafael Moreno says being recognised by the state and local government is a testament to the ‘incredible’ asset on the company’s hands.
“The interaction and support from the Government of Minas Gerais and its economic development arm of Invest Minas, and the town of Pocos de Caldas has been nothing less than extraordinary.
The recent signing ceremony attended by Minas Gerais State Governor Romeu Zema Neto, Director of Invest Minas Ronaldo Barquete and Mayor of Pocos de Caldas Sergio Antonio de Azevedo is clear evidence of the intent from all parties to accelerate the Colossus Project through the various development stages.
Regulatory approvals are typically one of the biggest risks on any project, and to have the backing and support from state and local governments to prioritise the approvals and licensing process will go a long way in de-risking our development timeline.”
Secretary of State for Economic Development Fernando Passalio says: “The project foresees the possibility of an ore processing and treatment plant on the site, which adds value to the product and also boosts the attraction of other companies that use these elements as raw materials for products, which strengthens the production chain and generates more jobs and revenue.”
The MoU with the state government and Invest Minas is a selective initiative from the state to form strategic partnerships with private companies that strengthen the local economy in a sustainable manner.
Viridis says Invest Minas selecting Colossus at such an early stage in its development journey highlights the importance of the project.
The Colossus project covers a 228.62km-square area and lies within the Pocos de Caldas Complex of Minas Gerais, Brazil.
Viridis Mining and Minerals is a resource explorer and developer focused on its assets in Brazil, Canada, and Australia.
As of 31 December 2023, the company had $1.568 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Virdis Mining and Minerals
