Viridis Mining’s Colossus Project Posts $1.41B NPV8 at Conservative Rare Earth Prices
Viridis Mining and Minerals has delivered a landmark Pre-Feasibility Study for its Colossus Rare Earth Project, confirming robust economics and securing key strategic funding and land expansions in Brazil.
- Pre-Feasibility Study shows pre-tax NPV8 up to US $1.41 billion at conservative pricing
- Secured up to US $30 million staged funding from leading Brazilian asset managers
- Expanded mining rights by 2,503.6 hectares, increasing total landholding to 23,468 hectares
- Maiden JORC Reserve of 201Mt at high-grade rare earth oxide concentrations
- Advanced environmental permitting with favorable technical opinion and pending council vote
Robust Economics Confirmed for Colossus Rare Earth Project
Viridis Mining and Minerals Limited (ASX, VMM) has marked a pivotal quarter ending 30 September 2025, unveiling a comprehensive Pre-Feasibility Study (PFS) for its flagship Colossus Rare Earth Project in Brazil. The study reveals world-class project economics, with a pre-tax net present value (NPV8) of approximately US $1.41 billion (AU $2.14 billion) based on a conservative long-term price forecast of US $90 per kilogram of NdPr, a key rare earth element.
Even under a cyclical low price scenario of US $63/kg NdPr, the project maintains a strong pre-tax NPV8 of US $773 million (AU $1.17 billion), underscoring its resilience across commodity cycles. Annual operating cash flows are projected at US $128 million at the low price, rising to US $197 million under the base case, positioning Colossus as the most financially robust rare earth development in South America.
Strategic Funding and Partnerships Bolster Development Pathway
Viridis has secured critical financial backing through a landmark binding Memorandum of Understanding with Brazilian asset managers ORE Investments Ltda. and Régia Capital Ltda., establishing a staged funding pathway of up to US $30 million. This capital injection is designed to support the project through Final Investment Decision (FID) and early execution phases, reflecting strong institutional confidence and local support.
Complementing this, Viridis and its joint venture Viridion have been selected by Brazil’s BNDES and FINEP agencies to progress under a Joint Support Plan, potentially unlocking a bespoke funding package combining non-dilutive grants, debt facilities, and equity participation. This strategic funding mix aims to accelerate the Colossus Project’s development and integrated downstream refining operations.
Expansion of Mining Rights and Maiden Ore Reserve
During the quarter, Viridis expanded its mining footprint by an additional 2,503.6 hectares adjacent to existing licenses in the Poços de Caldas region, increasing total landholdings to approximately 23,468 hectares. This expansion enhances resource optionality and consolidates Viridis’ dominant position in this prolific rare earth province.
The company also announced its maiden JORC Ore Reserve of 201 million tonnes at 2,640 parts per million total rare earth oxides (TREO) and an exceptional 740 ppm magnetic rare earth oxides (MREO), converting 61% of the measured and indicated resource base. This reserve underpins the project’s robust economics and validates its status as a leading global ionic adsorption clay rare earth deposit.
Progress on Environmental and Operational Fronts
Viridis advanced environmental permitting with the State Environmental Foundation (FEAM) issuing a favorable technical opinion recommending the granting of the Preliminary License. The project is now awaiting a final vote by the State Environmental Policy Council (COPAM) in November 2025, following a standard review extension.
Operationally, Viridis secured a strategic industrial site in Poços de Caldas for the Centre for Rare Earths Innovation, Technology and Recycling (CRITR), set to become Latin America’s first rare earth refining and recycling hub. Construction contracts for the Rare Earth Research and Processing Centre (CPTR) have been executed, with commissioning expected by early 2026. Notably, the processing technology and equipment are sourced entirely outside China, positioning Viridis as a strategically independent supplier amid tightening global rare earth controls.
Strengthened Leadership and Financial Position
Leadership enhancements include the appointment of Rafael Moreno as Managing Director and John Tasovac as Chief Financial Officer, both bringing extensive experience in mining project development and financial strategy. The company bolstered its balance sheet with an AU $11.5 million placement at a premium to market price, including a cornerstone AU $5 million commitment from JGP Asset Management.
Viridis ended the quarter with approximately AU $10 million in cash, well-positioned to fund ongoing development activities and exploration programs across its portfolio, including projects in Canada and Australia.
Bottom Line?
With strong economics, strategic funding, and regulatory progress, Viridis is poised to advance Colossus toward production, but upcoming environmental approvals and funding finalizations remain key milestones to watch.
Questions in the middle?
- Will the COPAM council approve the Preliminary License for Colossus in the upcoming November meeting?
- What are the final terms and timing of the funding package from BNDES and FINEP, and how will it impact project financing?
- How will Viridis scale its refining and recycling operations to meet growing rare earth demand amid global supply chain disruptions?
