Viridis drums up funds for Brazil rare earth project

Australia’s Viridis Mining and Minerals said it raised $120 million to fund the development of its Colossus rare earth project in the Brazilian state of Minas Gerais.

“We have now secured sufficient funding sources to fully address the indicative equity requirement for Colossus, materially de-risking the project’s funding pathway as we transition into execution,” CEO Rafael Moreno said in a press release on Thursday.

Adu Dhabi-based One Investment Management signed a binding agreement to provide $75 million. Viridis said it also secured commitments totaling $40 million from a group of mostly Brazilian strategic investors as well as $5 million from Brazilian funds ORE and Regia.

The financing announcement is “clearly positive for the Viridis equity story and another meaningful step in the de-risking of Colossus,” Citi analysts said in a report.

“In a relatively short period, the project has moved from an early-stage rare earth story toward a much more tangible, near-construction-ready asset, with the DFS now complete, reserves upgraded, permitting advancing and the equity portion of project financing largely
addressed,” the analysts wrote.

Viridis is expected to invest $449 million in capex, funded by 30% equity and 70% debt.

The company previously said it received support of various export credit agencies, including Export Finance Australia and Export Development Canada, to back the project finance.

It expects to receive a construction license by the end of the year.