Colossus Construction Delayed Pending Installation Licence Approval and Financing

Installation Licence Submission Marks Construction Threshold

Viridis Mining and Minerals Limited (ASX:VMM) has taken a decisive step toward realising its Colossus Rare Earth Project in Brazil by submitting the Installation Licence (IL) application to the State Environmental Agency of Minas Gerais (FEAM). This milestone permits the commencement of construction and site development activities, transitioning the project from permitting to execution phase. The IL follows the Preliminary Licence granted in December 2025 and is the second of three environmental approvals required before operations can begin.

Substantial Resource Base Supports Project Ambition

The Colossus Project covers Viridis’s Northern Concessions in Poços de Caldas, which lie clear of environmental protection zones and indigenous lands. These tenements host a substantial 215 million tonnes mineral resource, with a recent 46% expansion area adjoining the eastern boundary revealing rare earth oxide grades for dysprosium and terbium exceeding 500ppm. This high-value content enhances flexibility for mine planning within approved areas. The resource model excludes lower-grade and transitional materials, focusing on regolith ore with measured and indicated categories representing the bulk of the resource. The company’s recent high-grade infill drilling results have reinforced confidence in resource continuity and underpin the imminent resource upgrade ahead of the Final Investment Decision (FID).

Parallel Progress on Financing and EPCM Selection

Viridis is advancing critical project components in tandem with permitting. Discussions on project financing and offtake agreements are well advanced, while a formal selection process for the Engineering, Procurement, Construction Management (EPCM) contractor is underway. These developments follow a heavily oversubscribed AU$25 million placement earlier in 2026, which boosted the company’s cash position and supported procurement of long-lead items. The IL submission strategically positions Viridis to move through the final pre-execution stages, targeting a FID in the second half of 2026, contingent on regulatory approvals and financing outcomes.

Robust Environmental and Social Framework Underpins Licence Application

The IL application is comprehensive, integrating extensive technical, environmental, and social studies developed over several years. Key elements include a detailed Environmental Control Plan (PCA) addressing socio-environmental programs for construction, operations, and closure phases, as well as compliance with state and federal environmental and compensation requirements. The application also incorporates engineering designs from the Definitive Feasibility Study (DFS), covering mining, processing, and infrastructure. This disciplined approach reflects Viridis’s commitment to environmental stewardship and community engagement, essential for long-term project viability. The company’s recent approval of the environmental licence for the Colossus Mixed Rare Earth Carbonate Demonstration Plant further supports its ESG credentials and operational readiness.

Looking Toward Execution and Market Positioning

Colossus is positioned to become a globally competitive rare earth operation with a strong focus on responsible development. Managing Director Rafael Moreno highlighted the significance of the IL submission as a gateway to construction and project execution. Viridis’s strategy aligns with growing market demand for responsibly sourced rare earths, critical for clean energy technologies. The company’s multi-pronged development efforts, including ongoing financing and environmental approvals, suggest a concerted push toward operationalising Colossus within the projected timeline. However, the timing of FEAM’s final approval and the achievement of the FID remain subject to regulatory and market variables.