Viridis Mining and Minerals Ltd secures partnership
Viridis Mining and Minerals Limited (ASX: VMM) has announced a transformative partnership with two leading Brazilian financial institutions, securing up to US$30 million (AU$46 million) in staged funding to advance its flagship Colossus Rare Earth Project through to Final Investment Decision (FID) and initial project execution.
Brazilian Institutional Backing Provides Clear Path to Production
In a significant vote of confidence for the emerging rare earths player, Viridis has signed a binding Memorandum of Understanding (MOU) with ORE Investments Ltda. and Régia Capital Ltda., establishing a strategic alliance that goes far beyond mere capital injection.
The partnership brings together Viridis with two powerhouses of Brazilian finance:
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ORE Investments: A specialised private equity group focused exclusively on the mining sector, bringing technical and operational expertise through all stages from discovery to production.
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Régia Capital: A joint venture between JGP Asset Management and BB Asset Management (Banco do Brasil's Asset Management), focusing on sustainable investments with strong ESG alignment.
This milestone deal creates a flexible, staged funding structure designed to support Viridis through critical development phases with minimal market risk.
"This landmark investment framework is a clear vote of confidence in the Colossus Project and our team. Partnering with leading Brazilian institutions via Régia and ORE significantly de-risks our pathway to production, while designed to provide funding flexibility to accelerate progress." – Rafael Moreno, Managing Director
Strategic Funding Structure Offers Flexibility and Reduced Dilution
The partnership establishes a highly favourable capital structure for Viridis Mining and Minerals Ltd secures partnership that benefits its shareholders:
| Tranche | Amount | Timing | Pricing |
|---|---|---|---|
| Initial | US$5M | Upon execution of Definitive Agreements | AU$0.91 per share |
| Second | US$5M | 12 months (at investors' election) | Higher of 30-day VWAP less 5% discount or AU$0.91 |
| Third | US$10M | 24 months (at investors' election) | Higher of 30-day VWAP less 5% discount or AU$1.50 |
| Fourth | US$10M | 36 months (at investors' election) | Higher of 30-day VWAP less 5% discount or AU$1.50 |
Key advantages of this structure include:
- Non-brokered private placements ensuring efficient capital deployment
- Built-in flexibility allowing tranche acceleration upon milestone achievement
- Freedom to pursue additional financing at any stage
- Director representation rights based on ownership levels
- Pricing mechanisms that protect against excessive dilution
The first tranche will see approximately 8.3 million shares issued under ASX Listing Rule 7.1, with subsequent tranches subject to relevant regulatory and shareholder approvals.
Beyond Capital: Strategic In-Country Advantages
What makes this partnership particularly significant is the strategic advantage of securing backing from sophisticated local institutions. These partners bring:
- Deep understanding of the Brazilian regulatory landscape
- Established relationships with key stakeholders
- Enhanced access to project financing channels
- Local operational insights and connections
For Viridis, this local backing substantially de-risks the development pathway by providing not just capital, but also invaluable in-country expertise.
Understanding Rare Earth Elements: Critical Minerals for the Green Economy
Rare earth elements (REEs) comprise 17 metallic elements that, despite their name, are relatively abundant in the Earth's crust. However, they rarely occur in concentrated, economically viable deposits.
These elements are crucial components in technologies driving the green energy transition:
- Permanent magnets for electric vehicle motors and wind turbines
- Catalysts for petroleum refining and emissions control
- Phosphors for energy-efficient lighting and displays
- Components in rechargeable batteries and fuel cells
The global rare earths market is projected to grow significantly as demand for clean energy technologies accelerates, making new sources outside of China (which controls approximately 85% of global processing) strategically important.
Accelerated Development Pathway for Colossus Project
With funding now secured, Viridis Mining and Minerals Ltd secures partnership that enables several parallel workstreams to progress the Colossus Project:
- Environmental Permitting: Identified as the highest near-term priority
- Mixed Rare Earth Carbonate (MREC) Demonstration Plant: Advancing processing capabilities
- Project Financing: Exploring additional funding options
- Offtake Strategy: Developing commercial partnerships
- Definitive Feasibility Study (DFS): Including metallurgical optimisation
This comprehensive development strategy aims to position Viridis as a significant player in the rare earths supply chain outside of China.
"The involvement of ORE and Régia brings more than just capital. Both firms are deeply embedded within the Brazilian investment and mining landscape and bring significant strategic value in navigating regulatory frameworks, managing local stakeholder engagement, and unlocking logistical and operational synergies." – Rafael Moreno, Managing Director
Investment Thesis: Emerging Critical Minerals Player
Viridis presents a compelling investment case in the critical minerals sector:
- Strategic Asset: The Colossus Project represents a significant rare earths resource positioned to serve high-growth clean technology markets
- Institutional Backing: Endorsement from sophisticated Brazilian investors validates the project's fundamentals
- Staged Funding: Clear pathway to advance through critical development milestones
- Favourable Structure: Flexible capital arrangement minimises dilution while maximising optionality
- Local Advantage: Strategic in-country partnerships enhance regulatory and operational positioning
The company's diverse portfolio also includes projects prospective for gold (South Kitikmeot and Boddington West), nickel-copper-PGE (Bindoon), and kaolin-halloysite (Poochera and Smoky), providing additional optionality beyond its flagship rare earths asset.
Why Investors Should Follow Viridis
Viridis has strategically positioned itself at the intersection of several powerful market trends:
- Critical Minerals Focus: Exposure to rare earth elements essential for the green energy transition
- Supply Chain Security: Development of non-Chinese rare earth sources is a global strategic priority
- Strategic Partnerships: Backing from sophisticated Brazilian institutions validates the project
- Clear Development Pathway: Structured funding approach to advance through key milestones
- Management Execution: Team progressing on multiple fronts to unlock project value
With this landmark funding partnership now in place, Viridis Mining and Minerals Ltd secures partnership that substantially de-risks its pathway to becoming a significant player in the global rare earths market, offering investors exposure to the critical minerals essential for the clean energy transition.
As Managing Director Rafael Moreno states: "With ORE and Régia now backing the Company, Viridis has both the financial firepower and strategic local support to unlock this potential, cementing its position as a key emerging player in the global rare earths market."
Looking to Invest in the Rare Earth Revolution?
Discover why leading Brazilian financial institutions are backing Viridis Mining and Minerals' Colossus Rare Earth Project with up to US$30 million in strategic funding. This transformative partnership provides a clear pathway to production for this emerging critical minerals player. For complete details on this landmark investment framework and what it means for potential investors, read the full ASX announcement here.
