Viridis Secures $120M Equity as Colossus DFS Confirms Bankable Rare Earth Project

Colossus DFS Validates World-Class Rare Earth Project Economics

Viridis Mining and Minerals Limited (ASX:VMM) has delivered a Definitive Feasibility Study (DFS) for its flagship Colossus Rare Earth Project in Brazil, confirming a robust, bankable development case with strong execution readiness. The study underpins a 25-year production target of 5 million tonnes per annum (Mtpa), supported by a substantial Ore Reserve of 200.1 million tonnes (Mt), including 27.4 Mt Proved and 172.7 Mt Probable reserves.

At current spot prices for neodymium-praseodymium (NdPr) of US$129/kg, the DFS estimates a pre-tax net present value (NPV8) of US$1.87 billion and an after-tax internal rate of return (IRR) of 36.4%, with a rapid capital payback of 2.7 years. Total revenue over the 25-year production target is forecast at US$8.54 billion, generating operating cash flow of US$4.19 billion (excluding capital expenditure).

Capital and Operating Costs Positioned for Competitive Advantage

Capital expenditure is estimated at US$449 million including contingency, prepared to AACE Class 3 standard and supported by extensive competitive tenders, vendor testwork, and early contractor involvement. Operating costs are positioned at the lowest end of the global rare earth cost curve, with average C1 operating costs of US$9.84/kg on a total rare earth oxide (REO) basis and US$15.30/kg NdPr net of dysprosium (Dy) and terbium (Tb) credits. The all-in sustaining cost (AISC) is estimated at US$26.7/kg NdPr, underscoring strong margin resilience.

The project benefits from the simple ionic clay mineralisation allowing ambient temperature ammonium sulfate leaching, extensive water and reagent recycling, and a zero liquid discharge design philosophy. Non-hazardous process residues will be progressively backfilled into mined-out pits, avoiding conventional tailings dams and supporting progressive rehabilitation.

Advanced Project Execution and Commercial Readiness

Viridis has identified a preferred Engineering, Procurement and Construction Management (EPCM) contractor, with final contract negotiations underway and a Limited Notice to Proceed targeted for Q3 2026. Long-lead equipment procurement is well advanced, with critical packages progressing through testing and commercial discussions.

Environmental approvals have progressed significantly, with the Preliminary Licence granted and the Installation Licence application submitted. The project is supported by established infrastructure in Poços de Caldas, including secured 27 MW renewable grid power and municipal water supply, facilitating a lower-risk construction and operational pathway.

Strategic Offtake and Financing Partnerships in Place

Viridis has advanced commercial terms with Solvay under a non-binding Letter of Intent for the supply of refined mixed rare earth carbonate (MREC), enhancing product marketability and payability. The DFS incorporates this refined product strategy, which selectively removes lower-value lanthanum to concentrate high-value magnetic rare earths (Nd, Pr, Dy, Tb).

On the financing front, Goldman Sachs and Cutfield Freeman & Co. lead the debt structuring process, engaging export credit agencies and international lenders. Letters of support and interest have been received from Export Finance Australia, Export Development Canada, Bpifrance, and Brazil’s BNDES/FINEP strategic minerals initiative.

US$120 Million Equity Placement Secures Funding for Execution

Complementing the DFS, Viridis has secured up to US$120 million in strategic equity funding, primarily from Brazilian investors and cornerstone institutional investor One Investment Management (OneIM). This placement, alongside existing cash and accelerated tranches from ORE/Régia, fully covers the estimated US$135 million equity requirement for the project’s development capital structure.

The equity raise paves the way for EPCM mobilisation, long-lead equipment orders, continued Demonstration Plant optimisation, environmental approvals, and ongoing exploration. The strong domestic investor support highlights confidence in Colossus’ strategic importance within Brazil’s critical minerals landscape.

With equity funding secured and debt financing well advanced, Viridis is positioned to make a Final Investment Decision (FID) in Q4 2026, targeting construction commencement and first production in the second half of 2028.

Substantial Upside Potential Beyond DFS Base Case

While the DFS focuses on a 25-year production target using approximately 26% of the current 473 Mt Mineral Resource, Viridis highlights significant upside opportunities. These include resource expansion across the extensive 240 km² landholding, higher-grade mine scheduling, metallurgical recovery improvements demonstrated by the ongoing Demonstration Plant, capital optimisation through detailed engineering, and potential federal tax incentives.

Viridis’ integrated approach, including downstream rare earth separation and recycling ambitions, positions Colossus as a potential cornerstone for Brazil’s emerging rare earth value chain, supporting diversified global supply outside China.

What Comes Next for Viridis and Colossus?

With the DFS complete and funding largely secured, the focus shifts to finalising binding offtake agreements with Solvay, closing senior debt financing, awarding the EPCM contract, and advancing environmental licensing. The company’s ability to transition smoothly from DFS to FID and construction will be critical to capturing the strong market fundamentals underpinning rare earth demand.

Investors will be watching how Viridis balances execution risks, cost control, and the realisation of upside potential amid evolving rare earth market dynamics and geopolitical supply chain shifts.