Viridis’ $3.5M Placement Paves Way Amid Regulatory and Development Risks
Viridis Mining and Minerals has raised A$3.5 million through a placement to fund critical development milestones for its Colossus Rare Earth Element project, following a major resource upgrade.
- A$3.5 million placement at $0.33 per share secured from new and existing investors
- Colossus Project's Mineral Resource Estimate increased by 140%, with ultra-high-grade zones identified
- Funds allocated to Pre-feasibility Study, environmental approvals, and metallurgical optimisation
- Environmental Impact Assessment submitted and key local government approvals obtained
- Viridis aims to progress rapidly towards production with a focus on cost-competitive rare earth extraction
Funding Boost for Colossus Project
Viridis Mining and Minerals has successfully secured firm commitments for a placement raising A$3.5 million at an issue price of $0.33 per share. This capital injection comes at a pivotal moment for the company as it advances the Colossus Rare Earth Element (REE) Project in Brazil, following a significant 140% increase in its Mineral Resource Estimate (MRE).
The placement attracted both new and existing institutional and sophisticated investors, reflecting strong market confidence in Viridis' asset quality and development strategy. The funds will be directed towards finalising the Pre-feasibility Study, commencing the Definitive Feasibility Study, conducting further metallurgical test work to optimise the processing flowsheet, and progressing environmental approvals.
Resource Upgrade Underpins Project Potential
The recent MRE update has been a game-changer for Viridis, delineating an exceptional ultra-high-grade zone of 106 million tonnes at over 4,000 ppm total rare earth oxides (TREO) and more than 1,000 ppm magnetic rare earth oxides (MREO). This positions Colossus as one of the largest and highest-grade ionic adsorption clay (IAC) REE projects globally, with a total resource now standing at 493 million tonnes at 2,508 ppm TREO and 601 ppm MREO.
Such a resource base not only promises a long-life feedstock but also supports the project's economics by providing a high-value basket of critical rare earth elements, including neodymium, praseodymium, dysprosium, and terbium. Viridis’ world-leading metallurgy has demonstrated industry-leading recoveries of up to 78% MREO from ore to mixed rare earth carbonate (MREC), further enhancing the project's attractiveness.
Advancing Environmental and Regulatory Milestones
Viridis has made significant strides in de-risking the project timeline by submitting the Environmental Impact Assessment (EIA) and securing the Certificate of Regularity for Land Use and Occupation from the Municipality of Poços de Caldas. These approvals are critical for the construction and operation of the Colossus Project and mark a key step towards production readiness.
The company plans to use the placement proceeds to accelerate the environmental permitting process, including preparation and submission of the Installation License applications. This focus on regulatory compliance aligns with Viridis’ strategy to move through development stage gates efficiently and with reduced risk.
Strategic Outlook and Market Positioning
CEO Rafael Moreno highlighted that the placement funding supports ongoing discussions with potential offtake partners and project financiers, underpinning Viridis’ ambition to become a cash flow generator. The company’s partnership with Ionic Rare Earths for separation and refining technology further strengthens its position in the rare earth supply chain.
With exploration drilling largely complete and a focus shifting towards mining studies and project approvals, 2025 is expected to be a low-cost year for Viridis. The upcoming Scoping Study results are highly anticipated and expected to showcase the transformative economics of the Colossus Project, potentially resetting the cost curve in the rare earth industry.
Viridis’ rapid transition from greenfield acquisition in 2023 to a globally significant resource holder with strong government support and advanced metallurgy underscores the project's disruptive potential in the critical minerals sector.
Bottom Line?
Viridis’ well-funded development push in 2025 sets the stage for a rare earths project that could reshape industry cost dynamics.
Questions in the middle?
- How will the upcoming Scoping Study influence investor confidence and project valuation?
- What timelines are realistic for securing definitive feasibility and final environmental approvals?
- How might evolving rare earth market dynamics impact Viridis’ offtake negotiations and financing?