An Australian mining company has secured crucial financial backing from the federal government's export credit agency for its massive rare earths venture in Brazil, underscoring the project's global strategic importance.
International Funding Stack Takes Shape
Viridis Mining and Minerals has obtained a non-binding Letter of Support from Export Finance Australia (EFA) for up to $US50 million (approximately $A77 million) in debt financing. This funding is earmarked for the development of the company's flagship Colossus rare earths project, located in Brazil's mineral-rich Minas Gerais state.
The EFA's commitment adds significant weight to an international financing package already taking form. It follows similar support from other major export credit agencies, including Export Development Canada (EDC), which offered up to US$100 million, and France's Bpifrance. The project also has a joint support plan in place with Brazilian agencies BNDES and FINEP under the nation's strategic minerals initiative.
Viridis Managing Director Rafael Moreno described the EFA's support as the "final cornerstone" in the company's debt financing strategy for Colossus. He stated the backing from one of the world's most respected export credit agencies reinforces the project's status as a globally strategic rare earth development.
A Project of Scale and Strategic Value
The Colossus project is an ionic adsorption clay (IAC) deposit, a style of mineralisation prized for its lower processing costs. It sits in the Poços de Caldas region and represents one of the highest-grade IAC rare earths deposits found outside of China.
The project's ore reserve totals a substantial 200.6 million tonnes. It boasts an average magnetic rare earth oxide grade of 740 parts per million (ppm), contained within a broader resource grading 2640ppm total rare earth oxides. This resource is rich in the four key magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium.
Management reports that the project's large-scale reserve and low-cost processing flowsheet have driven strong interest from export agencies, institutional investors, and industry groups across North America, Europe, Brazil, and Australia. The economics are expected to be robust even at current market prices, without reliance on government price supports.
Momentum Builds Towards Development
The financing news adds to a series of recent milestones for Viridis. Just two weeks ago, the company's share price surged 39 per cent after it received a Preliminary Environmental License (PL) for Colossus from Minas Gerais state authorities. This approval, granted via a unanimous vote, clears a major regulatory hurdle and allows the company to progress to seeking an Installation License for construction.
Beyond export agency debt, Viridis is also pursuing other funding avenues. The company has signed a binding memorandum of understanding with Brazilian asset managers ORE Investments Ltda and Régia Capital Ltda for potential staged private placement funding of up to US$30 million (A$45 million).
Furthermore, the project benefits from technology provided through a joint venture. Viridion, a JV between Viridis and ASX-listed Ionic Rare Earths, will supply patented high-tech refining and recycling technology to the operation.
A prefeasibility study has estimated the project's development capital expenditure at $US286 million, which includes a 25 per cent contingency. The EFA's support includes a requirement for Australian content in project service contracts, providing a potential boost for domestic expertise.
With key environmental approvals secured and a formidable international financing consortium now assembled, Viridis is pushing to appoint a mandated lead arranger to shepherd the project through final due diligence and towards a Final Investment Decision. The development of Colossus is being closely watched by Western nations eager to diversify supply chains for these critical minerals, which are vital for everything from electric vehicles to defence technologies.
