Viridis Mining and Minerals has converted its memorandum of understanding with Brazilian financial firms Régia Capital and ORE Investments into a binding US$30 million (A$46 million) funding deal. The first US$5 million has already been received, providing capital to advance its Colossus rare earths project in Brazil toward a final investment decision.
Under the agreement, the US$30 million will be delivered in four staged equity tranches over up to 36 months, with flexibility to accelerate funding as milestones are met. The first tranche of US$5 million was issued at 91 cents per share, matching the company's July capital raising. Subsequent tranches have pricing mechanisms based on volume-weighted average prices with minimum floors, including US$1.50 per share for the final two tranches.
The deal also grants Régia and ORE the right to nominate up to two directors as their stake increases, adding Brazilian expertise to the board. The investment followed three months of due diligence by the funders, who engaged rare earths specialists, global consultants, and environmental experts to assess the Colossus project.
Colossus, located in Brazil's Poços de Caldas region, is one of the highest-grade ionic adsorption rare earths deposits outside China. It contains all four key magnet metals—neodymium, praseodymium, dysprosium, and terbium—critical for permanent magnets used in EVs, drones, defence systems, and wind turbines. A scoping study in February forecast US$2.28 billion in EBITDA over a 20-year mine life, with operating costs projected at just US$6 per kilogram of total rare earth elements.
Viridis is now prioritising environmental permitting and advancing the project amid growing Western demand for secure rare earths supply, following China's export restrictions. The company aims to become a low-cost producer feeding critical magnet supply chains.
