Viridis Mining Secures Access to Brazil’s $903M Strategic Minerals Funding

Viridis Secures Major Funding Opportunity with Brazil's US$903M Strategic Minerals Initiative

Viridis Mining and Minerals (ASX: VMM) has achieved a significant milestone in its journey toward becoming a key player in the global rare earths supply chain. The company, along with its joint venture entity Viridion, has been selected by Brazil's leading development institutions to progress with a Joint Support Plan that could provide substantial financial backing for its Colossus Project.

Brazilian Government Backs Viridis with Access to Multi-Million Dollar Funding Package

In a major vote of confidence, Viridis Mining and Minerals funding in Brazil has been secured as the company was selected by the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Studies and Projects (FINEP) to advance to the final phase of Brazil's strategic minerals funding initiative.

This selection positions Viridis to potentially secure significant financial support from Brazil's US$903 million funding package aimed at developing strategic mineral projects critical to energy transition and decarbonisation efforts.

The Joint Support Plan (PSC) provides Viridis and Viridion access to several financial instruments:

• BNDES Programs/Credit Lines
• BNDES Equity Investment
• Non-reimbursable Resources from FINEP

Managing Director Rafael Moreno highlighted the significance of this development:

"Being selected by BNDES and FINEP to progress to a Joint Support Plan, under Brazil's strategic minerals initiative, is a major milestone for Viridis and a strong endorsement of the Colossus Project's technical quality, economic viability, and downstream integration strategy. This recognition positions us at the forefront of establishing the first fully integrated rare earths supply chain outside China, a goal that now moves significantly closer."

Understanding Brazil's Strategic Minerals Initiative

Brazil's government has committed substantial resources to develop domestic supply chains for minerals critical to the global energy transition. The BNDES and FINEP joint initiative consists of two major funding programs:

1. Strategic Minerals Funding Pool: BRL$5 billion (~US$903 million) allocated to support business plans focused on transforming strategic minerals in Brazil, including commercial-scale plants, pilot facilities, and demonstration projects.

2. Technology Development and Innovation Hubs: An additional BRL$3 billion (~US$542 million) to support companies advancing further down the value chain through technology development and innovation hubs.

These initiatives align with Brazil's "New Industry Brazil" policy, which aims to reduce dependency on foreign suppliers and establish leadership in the clean energy supply chain.

The Colossus Project: A World-Class Rare Earth Resource

Viridis' flagship Colossus Project represents one of the most significant rare earth element developments outside China. The project boasts impressive mineral resources:

Note: TREO = Total Rare Earth Oxides; MREO = Magnet Rare Earth Oxides

The project stands out for its high percentage of magnet rare earth oxides (MREOs), which are the most commercially valuable rare earth elements used in permanent magnets for electric vehicles, wind turbines, and other green technologies.

Rare Earth Elements: Critical Minerals for the Green Energy Transition

Rare earth elements (REEs) comprise 17 metallic elements, including the 15 lanthanides plus scandium and yttrium. Despite their name, most REEs are relatively abundant in the Earth's crust, but they rarely occur in concentrated, economically viable deposits.

The most commercially significant REEs are those used in manufacturing powerful permanent magnets – neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb). These "magnet rare earths" are essential components in technologies driving the global energy transition:

• Electric Vehicles: Each EV motor typically contains 1-2kg of rare earth permanent magnets
• Wind Turbines: Direct drive wind turbines use approximately 600kg of rare earth magnets per megawatt
• Electronics: From smartphones to hard drives, rare earth magnets enable miniaturisation and efficiency

Currently, China dominates the global rare earth supply chain, controlling approximately 85% of processing capacity and over 90% of magnet manufacturing. This market concentration has prompted Western nations to seek alternative supply sources, creating opportunities for projects like Colossus.

The Colossus Project's significance stems from its high proportion of magnet rare earths (MREOs), which comprise over 81% of the total rare earth content – significantly higher than most competing projects globally.

Integrated Downstream Strategy Sets Viridis Apart

What makes Viridis Mining and Minerals funding in Brazil particularly attractive to Brazilian government institutions is its integrated approach to rare earth production. Through its joint venture with Ionic Rare Earths Limited (IXR), Viridis has access to proven, patented refining and recycling technology.

The company recently demonstrated its downstream capabilities by successfully delivering high-purity neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) oxides to CIT SENAI, Latin America's only magnet manufacturer. This achievement validates the company's technical capabilities and commercial pathway.

Accelerated Path to Production

With this latest funding milestone, Viridis is executing a clear roadmap to production:

1. Environmental Permitting: Following submission of the Environmental Impact Assessment in January 2025, approval of the Preliminary License is anticipated in the coming months.

2. Project Financing: Beyond the BNDES/FINEP funding, Viridis is engaged with multiple strategic investors, export credit agencies, and development banks across several continents.

3. Offtake Strategy: Discussions with potential strategic offtake partners have intensified following the release of the Pre-Feasibility Study (PFS).

4. Definitive Feasibility Study: With process technology selection now better defined, the company is initiating targeted metallurgical testing to enhance recoveries before commencing the DFS.

Why Investors Should Follow Viridis

Viridis represents a compelling opportunity in the rare earths sector for several key reasons:

1. Government-Backed Development: Selection for the BNDES/FINEP funding process significantly de-risks the project and potentially provides substantial non-dilutive capital.

2. Strategic Position in Global Supply Chain: As one of the few Western rare earth projects with near-term production potential, Viridis Mining and Minerals funding in Brazil positions it to benefit from growing demand for non-Chinese rare earth supplies.

3. Robust Project Economics: The recently completed PFS demonstrated strong economic fundamentals designed to perform across commodity cycles.

4. Vertical Integration: Unlike many junior miners, Viridis has secured downstream processing capabilities through its joint venture with IXR, allowing it to capture more value from the rare earth supply chain.

5. Clear Path to Production: With environmental permitting advancing and strong financial backing, Viridis has a credible roadmap to becoming a producer.

The company's strategic positioning in a sector critical to the energy transition, combined with substantial government backing and clear execution plan, makes Viridis a rare earth developer worth watching as it progresses toward production.

Want to Capitalise on Brazil's Critical Minerals Revolution?

Discover how Viridis Mining and Minerals is positioning itself at the forefront of rare earth element production with substantial Brazilian government backing. To learn more about the company's Colossus Project and its potential to capture significant market share in the global rare earths supply chain, view the full ASX announcement here.