Viridis Mining Rare Earth Project Secures US$100M Canadian Support

Viridis Mining Secures Game-Changing US$100 Million Backing from Canada's Premier Export Credit Agency

Viridis Mining and Minerals Limited (ASX: VMM) has announced a significant financing breakthrough for its flagship Viridis Mining rare earth project, receiving a Letter of Interest (LOI) from Export Development Canada (EDC) for US$100 million in debt financing support. This marks the third major sovereign backing for the project, positioning Viridis as a key player in the global race to secure Western rare earth supply chains.

The Canadian export credit agency's endorsement represents another validation of the Colossus Project's strategic importance, joining France's Bpifrance and Brazil's BNDES/FINEP in supporting what could become a cornerstone rare earth development outside of China's dominance.

With a Pre-Feasibility Study CAPEX of US$286 million (US$356 million including contingency), this latest commitment brings Viridis significantly closer to completing its debt financing framework ahead of a targeted Final Investment Decision (FID) in Q3 2026.

Triple Crown of International Sovereign Support

The EDC Letter of Interest represents the third pillar in Viridis' sovereign-backed financing strategy, creating an unprecedented level of government support for an Australian rare earth development project.

This tri-national backing reflects the project's alignment with Western governments' critical mineral security priorities. Furthermore, following the G7 meeting in Toronto where rare earth supply chain diversification was identified as a strategic imperative, this support demonstrates remarkable confidence.

Managing Director Commentary

"Securing a Letter of Interest from Export Development Canada marks another major milestone for Viridis and further validates the Colossus Rare Earth Project's global strategic significance," said Rafael Moreno, Managing Director.

Understanding Export Credit Agencies: Why This Matters

Export Credit Agencies (ECAs) are government-backed institutions that provide financial support to promote their country's exports and economic interests abroad. EDC, as Canada's official export credit agency, typically supports projects that involve Canadian equipment, services, or strategic interests.

For investors, ECA backing offers several key advantages:

• Lower financing costs due to government backing
• Longer repayment terms than commercial lenders
• Enhanced project credibility with other financiers
• Reduced political and commercial risk

The involvement of three major ECAs signals that the Viridis Mining rare earth project has passed rigorous due diligence processes and aligns with multiple governments' strategic priorities, significantly de-risking the project for private investors.

Key Benefits of Export Credit Agency Support

ECAs bridge the gap between commercial lending limitations and strategic national interests. In addition, their participation typically indicates:

• Technical viability confirmed through independent assessment
• Strategic alignment with national critical mineral security
• Enhanced bankability for additional commercial financing
• Political risk mitigation through government endorsement

Project Fundamentals Driving International Interest

The Colossus Project's ability to attract sovereign backing stems from its compelling technical and economic characteristics:

Key Project Attributes:

• High-grade magnetic rare earth oxide (MREO) profile
• Large-scale resource potential in Brazil
• Low-cost flowsheet design
• Robust returns across market cycles
• No reliance on artificial price floors

However, the project's Brazilian location provides additional strategic value, positioning it as a Western Hemisphere alternative to Chinese-dominated supply chains whilst benefiting from Brazil's established mining infrastructure and regulatory framework.

The company's ongoing financing engagement has attracted strong attention from export credit agencies, institutional investors and industry groups across North America, Europe, Brazil and Australia. Consequently, this global interest is driven by Colossus' technical capabilities that position the project to deliver robust returns through all market cycles without reliance on artificial and unsustainable floor prices.

Accelerated Pathway to Full Financing

With three sovereign financiers now engaged, Viridis has assembled what may be the most comprehensive government-backed financing framework for any rare earth project outside China. The company's integrated funding strategy combines:

Sovereign Support:

• Export Development Canada (US$100M LOI)
• Bpifrance (Strategic Projects Financing eligibility)
• BNDES/FINEP (Joint Support Plan participation)

Strategic Partners:

• ORE Investments Ltda (committed institutional partner)
• Régia Capital Ltda (committed institutional partner)

This coordinated approach addresses both the debt and equity requirements for the US$286 million base case development cost. Furthermore, the company is now progressing toward final structuring discussions over the coming months.

EDC's LOI is supported by potential Canadian equipment and service supply opportunities during the project's execution phase. Nevertheless, provision of financing remains subject to EDC's standard due diligence, internal approvals and customary project finance conditions.

Timeline to Production

The EDC LOI remains valid until 17 November 2026, providing Viridis with a clear timeline to advance through final approvals and due diligence processes.

The company expects to progress final structuring discussions with its financing partners over the coming months as it advances toward full funding readiness. In addition, this coordinated capital framework delivers both depth and certainty, supporting Viridis as it advances through its final funding milestones.

Investment Thesis: Riding the Critical Minerals Wave

The Viridis Mining rare earth project presents a compelling investment opportunity at the intersection of several powerful macro trends:

Strategic Positioning:

• Western supply chain diversification imperative
• Government backing from three major economies
• High-grade resource with robust economics
• Experienced management with proven execution capability

Market Dynamics:

• Growing demand for rare earths in renewable energy and defence applications
• Western governments prioritising supply chain security
• Limited new supply outside China coming online

The company's ability to secure sovereign backing from Canada, France, and Brazil demonstrates both the project's technical merit and its alignment with Western strategic priorities. Consequently, this positions Colossus as a potential cornerstone development in the global rare earth landscape.

Rare Earth Market Context

The rare earth sector has gained significant strategic importance as governments seek to reduce dependence on Chinese supply chains. Critical applications include:

• Wind turbine magnets for renewable energy infrastructure
• Electric vehicle motors driving transportation electrification
• Defence systems requiring secure supply chains
• Electronics manufacturing across multiple industries

This growing demand profile, combined with limited Western supply alternatives, creates a favourable environment for projects with strong government backing and proven economics.

Why Investors Should Follow Viridis Mining

The convergence of sovereign support, strategic resource position, and favourable market dynamics creates a unique value proposition for investors seeking exposure to the critical minerals theme.

Key Tracking Points:

• Financing completion progress toward FID
• Offtake agreement developments with strategic partners
• Permitting advancement in Brazil
• Market conditions for rare earth pricing

Furthermore, endorsement from one of the world's leading export credit agencies underscores the project's strategic importance in diversifying and strengthening Western rare earth supply chains. This recognition aligns directly with the priority actions announced at the recent G7 meeting in Toronto, reinforcing Colossus' position as a key contributor to securing long-term critical mineral supply.

Key Investment Takeaway

Viridis has assembled an unprecedented level of international government backing for its Colossus Project, positioning the company as a potential leader in Western rare earth supply chain diversification. With three sovereign financiers engaged and FID targeted for Q3 2026, investors have a clear timeline to monitor this compelling critical minerals development story.

The company's progress toward full financing represents a significant de-risking event, transforming Colossus from an exploration story into a development project with credible government backing and a clear pathway to production. Moreover, eligibility for financing through EDC's framework adds a third international finance pillar to the funding strategy, significantly enhancing lender confidence and expanding access to competitive project finance solutions for the Viridis Mining rare earth project.

Want to Explore Viridis Mining's Rare Earth Investment Opportunity?

With unprecedented sovereign backing from three major economies and a clear pathway to Final Investment Decision in Q3 2026, Viridis Mining presents a compelling opportunity in the critical minerals space. The company's Colossus Project has attracted US$100 million in support from Export Development Canada, joining backing from France's Bpifrance and Brazil's BNDES/FINEP. To examine the full details of this significant financing milestone and assess VMM's position as a potential leader in Western rare earth supply chain diversification, review the complete ASX announcement here.