Viridis Mining and Minerals (ASX: VMM) Secures Up to US$120 Million for Colossus

Viridis Mining and Minerals has secured commitments for up to US$120 million in strategic equity funding for its Colossus rare earth project in Brazil.

The package includes up to US$75 million from global alternative investment manager One Investment Management. It also covers US$40 million from strategic investors and an accelerated US$5 million ORE/Régia tranche.

Viridis held about US$14 million in cash at June 30. Another US$20 million remains available through the existing ORE/Régia arrangement.

Equity Target Covered

Colossus has an estimated development cost of US$449 million under the completed definitive feasibility study. Viridis is targeting a financing mix of 70% senior debt and 30% equity.

That structure implies an indicative equity requirement of about US$135 million. The identified sources exceed that amount, before funding costs.

This distinction matters because Viridis has addressed the targeted equity component, rather than completing the entire project financing. Senior debt and binding offtake arrangements remain unfinished. OneIM’s second tranche also carries regulatory, due-diligence and shareholder-approval conditions.

OneIM’s first tranche involves 16.18 million shares at A$3.79 each, raising about A$61.3 million. The price represents a 10% discount to Viridis’ last traded price of A$4.21.

After completion, OneIM will hold about 9.9% of Viridis’ issued capital. Its second tranche is expected to provide another A$44.8 million.

The second-tranche price has a floor of A$3.70 and a ceiling mechanism involving A$4.50. It will also reference 90% of Viridis’ 10-day volume-weighted average price.

Capital Moves Into Execution

Viridis plans to use the proceeds to mobilise its engineering, procurement and construction management contractor. Funds will also support orders for long-lead equipment and critical-path items.

Other uses include operating and optimising the Brazilian demonstration plant, advancing environmental approvals, and conducting further drilling. Working capital and other project development activities are also covered.

The majority of the additional strategic-investor capital came from Brazilian investors. That broadens domestic ownership as Viridis pursues rare earth processing and downstream industrial capacity in Brazil.

Placement settlement is scheduled for August 27, with quotation of the first-tranche shares expected on August 28. The placement is not underwritten.

Debt Is the Next Funding Test

Viridis has appointed Goldman Sachs and Cutfield Freeman to lead the project debt process. An independent technical report is targeted for completion by the end of August.

The company is targeting lender term sheets and progress on credit approvals by the end of September. It continues to target a final investment decision in the fourth quarter of 2026.

Funding discussions include export credit and development finance institutions. Export Finance Australia has provided conditional, non-binding support for up to US$50 million. Export Development Canada has indicated possible support of up to US$100 million.

Those expressions do not constitute completed debt financing. Finalising senior debt, binding offtake and key approvals remains central to moving Colossus into construction.