Viridis Mining Secures US$154M Equity Funding for Colossus Rare Earth Project

Viridis Mining and Minerals Colossus Rare Earth Project Funding Secured

Viridis Mining and Minerals (ASX: VMM) has secured commitments for up to approximately US$120 million in new strategic equity funding for its Colossus rare earth project in Brazil, a financing step that the company says fully addresses the project's indicative equity requirement. Combined with existing cash and remaining available funding under an earlier investment arrangement, Viridis has identified about US$154 million in equity funding sources against an indicative requirement of US$135 million.

According to the ASX announcement, this follows completion of the project's Definitive Feasibility Study (DFS) and shifts the focus from study work to execution. Immediate priorities now include binding offtake agreements, completion of the senior debt package, EPCM mobilisation and orders for long-lead equipment ahead of a targeted Final Investment Decision (FID) in Q4 2026.

Is the Equity Funding Requirement Now Covered?

Viridis stated that Colossus is being advanced on a targeted financing structure of approximately 70% senior debt and 30% equity, based on a US$449 million development capital estimate outlined in the DFS. On that basis, the company's indicative equity requirement is about US$135 million.

The funding sources identified in the announcement are summarised below.

That funding mix matters because it reduces one of the largest hurdles for any mine developer: assembling the equity portion before lenders commit debt. In project development, equity is typically the higher-risk capital, so securing it first can improve lender confidence and support the move toward credit approvals.

"This is a significant achievement for Viridis. Following completion of the DFS, 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," said Rafael Moreno, Managing Director of Viridis.

OneIM Becomes Cornerstone Institutional Investor

The largest single component of the raise is a binding agreement with One Investment Management (OneIM), a global alternative investment manager founded in 2022 that, according to the announcement, manages more than US$12 billion in assets. Viridis said the investment could total up to US$75 million across two tranches.

What Are the Tranche 1 Terms?

Under the first tranche, OneIM will subscribe for 16,177,744 ordinary shares at $3.79 per share, raising approximately $61.3 million for Viridis. The issue price represents a 10.0% discount to the last traded price of $4.21. On completion of Tranche 1, OneIM is expected to hold about 9.9% of Viridis' issued share capital.

What Are the Tranche 2 Terms?

The second tranche is structured as an additional investment of approximately $44.8 million. The issue price will be the higher of $3.70 per share and the lower of $4.50 per share or 90% of the company's 10-trading-day volume weighted average price (VWAP) at the time conditions are met or waived.

Viridis said Tranche 2 remains subject to customary conditions, including:

• FIRB approval
• Due diligence
• Relevant shareholder approvals
• Customary business conduct protections and termination provisions

Furthermore, this two-tranche structure gives Viridis immediate capital from Tranche 1 while preserving the potential for additional funding as approvals progress.

Brazilian Investor Participation Stands Out

The ASX announcement also highlighted the source of the additional US$40 million in commitments from a select group of strategic investors. Viridis said the majority of this capital has been raised from leading Brazilian investors, alongside continuing support from ORE Investments Ltda. and Régia Capital Ltda.

For investors, this is relevant in two ways. First, local investor participation can indicate confidence from parties familiar with Brazil's industrial and commercial setting. Second, Viridis has repeatedly stated that it wants to maximise rare earth industrialisation capability in Brazil, including downstream processing, and the funding profile is consistent with that stated approach.

ORE and Régia have also agreed to accelerate the next US$5 million tranche of their existing investment, previously scheduled for November 2026. After that tranche is completed, Viridis said a further US$20 million will remain available under the existing arrangement.

Why Does Strategic Equity Matter in Mine Development?

For non-specialist investors, the term strategic equity can sound vague, but it has a practical meaning in project finance. Strategic equity refers to investment from parties that may have a longer-term commercial or industrial interest in the project, not just a short-term financial return.

In a mining development context, this can matter because:

• It may improve confidence among debt providers
• It can support offtake and commercial discussions
• It may reduce uncertainty around funding continuity
• It can align investors with longer project timelines

At Colossus, Viridis is assembling equity from a mix of a new cornerstone investor, existing backers and additional institutional investors. According to the company, this is intended to support the shift from DFS completion into project execution.

Key Terms Explained

Debt Financing Is Now the Next Major Catalyst

With the equity side addressed, the company's next major task is senior debt. Viridis said it has appointed Goldman Sachs and Cutfield Freeman & Co. as financial advisers to lead the structuring and execution of the debt financing process. The company confirmed that the project briefing package and financing teaser had already been distributed to prospective lenders.

The debt plan includes engagement with export credit agencies and development finance institutions. Viridis outlined the following support pathways:

The company also stated that an Independent Engineer (IE) has been appointed and is completing technical due diligence. The resulting Independent Technical Report is targeted for completion by the end of August 2026. Lender term sheets and progress on credit approvals are being targeted by the end of September 2026, subject to completion of that report.

This sequence is important because lenders typically rely on a completed feasibility study and an independent technical review before committing debt terms.

What Will the Company Fund Next?

Viridis said placement proceeds will be used primarily to advance Colossus through the early execution phase. The uses of funds listed in the announcement include:

• Mobilisation and commencement of the EPCM contract
• Purchase orders for long-lead equipment and critical path items
• Continued operation and optimisation of the MREC Demonstration Plant in Brazil
• Advancement of environmental approvals
• Exploration and drilling near the current Colossus resource and mine plan
• General working capital and other project development activities

This spending profile reflects a project moving beyond study work and into preparation for construction, while still finalising debt and offtake.

Near-Term Timeline to Watch

Viridis provided an indicative timetable for the placement and key financing milestones.

For investors following ASX rare earth stocks, these dates frame the next major catalysts. The equity raise reduces one area of uncertainty; however, debt execution, offtake finalisation and delivery planning remain central to the next stage.

Why This Funding Update Matters for VMM Investors

The significance of the announcement is less about the headline number alone and more about what it says about project readiness. Viridis now has:

• A completed DFS
• An identified equity pool above its indicative requirement
• A new cornerstone institutional investor in OneIM
• Ongoing support from existing investors ORE/Régia
• Active debt advisory mandates with Goldman Sachs and Cutfield Freeman & Co.
• An Independent Engineer progressing lender-facing due diligence
• Multiple debt support pathways under review

That does not eliminate execution work ahead, but it does move Colossus further along the development curve than many pre-construction resource projects. According to the company, the next phase is about converting study outcomes and investor commitments into a complete financing package and then into FID.

For the broader rare earth project financing market, this update is also a reminder of how capital structures are assembled in practice. A bankable feasibility study, a defined capital cost estimate, staged equity commitments and debt engagement with multiple institutions are often required before a development project can move into construction.

Viridis has now addressed a major part of that process on the equity side. In addition, the next measure of progress will come from offtake, lender term sheets and whether the company can maintain its timetable toward Q4 2026 FID.

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