Viridis Raises AU$11.5M to Accelerate Colossus Rare Earth Project Development

Robust Capital Raise Signals Confidence

Viridis Mining and Minerals Limited has successfully secured AU$11.5 million through a heavily oversubscribed placement priced at AU$0.91 per share, representing a 13% premium to the 10-day volume weighted average price. This capital injection underscores strong institutional demand and growing recognition of the company’s flagship Colossus Rare Earth Project in Brazil.

Notably, the placement attracted a cornerstone AU$5 million commitment from JGP Asset Management, a respected Brazilian asset manager. This endorsement not only brings capital but also valuable local market insight and regulatory expertise, which could prove pivotal in navigating Brazil’s complex mining landscape.

Strategic Partnerships and Government Backing

Beyond the immediate capital raise, Viridis has forged a binding Memorandum of Understanding with Brazilian investment groups ORE Investments Ltda. and Régia Capital Ltda., outlining a pathway for a staged private placement of up to US$30 million (approximately AU$46 million). Combined with the current placement, Viridis is positioned with a proforma cash balance of around AU$58.5 million, providing a strong financial foundation to progress through the Final Investment Decision (FID) and into early project execution.

Further bolstering its position, Viridis and its joint venture entity Viridion Pty Ltd have been selected by Brazil’s leading development finance institutions, BNDES and FINEP, for a Joint Support Plan. This opens potential access to additional funding instruments, including credit lines, equity investments, and grants, subject to meeting eligibility criteria. Such government support is a significant vote of confidence and could materially de-risk the project’s financing and development timeline.

Advancing a Globally Significant Rare Earth Project

The Colossus Project has recently been validated by a pre-feasibility study confirming its economic robustness, high-grade magnetic rare earth oxide profile, and scalable resource base. Its simple, low-cost metallurgy places it in the first quartile of the rare earth cost curve, offering resilience against commodity price fluctuations.

Viridis is currently focused on regulatory milestones, having submitted its Environmental Impact Assessment earlier this year and anticipating approval of the Preliminary Licence imminently. The subsequent Installation Licence remains critical to maintaining project momentum and unlocking production potential.

Funds from the placement will be directed towards advancing the Mixed Rare Carbonate demonstration plant, completing the Definitive Feasibility Study, progressing environmental approvals, and conducting further drilling to expand mineralised zones. These activities are essential to maintaining the project’s development timeline and supporting ongoing offtake and financing discussions.

Looking Ahead

With a strengthened balance sheet, strategic partnerships, and government backing, Viridis is well-positioned to navigate the remaining development hurdles. The company’s disciplined approach aims to deliver first production and generate cash flow, establishing Colossus as a cornerstone rare earth supplier outside China’s dominance.