Viridis Faces Financing Hurdles Despite US$100M Letter of Interest from EDC

Strategic Financing Milestone

Viridis Mining and Minerals Limited (ASX – VMM) has taken a major step forward in securing the financial backing necessary to advance its Colossus Rare Earths Project in Brazil. The company announced it has received a non-binding Letter of Interest (LOI) from Export Development Canada (EDC) for up to US$100 million in debt financing. This endorsement from one of the world’s leading export credit agencies underscores the strategic importance of Colossus in diversifying Western rare earth supply chains.

The LOI from EDC complements earlier support from Bpifrance Assurance Export, the French export credit agency, and Brazil’s BNDES/FINEP, which are both involved in the project’s financing framework. Together, these agencies form a robust triad of sovereign-backed financial pillars that enhance lender confidence and broaden Viridis’ access to competitive project finance solutions.

Project Economics and Funding Outlook

The Colossus Project’s Pre-Feasibility Study estimates capital expenditure at approximately US$286 million, rising to US$356 million when including a 25% contingency. The project’s strong fundamentals, highlighted by a high-grade magnetic rare earth oxide profile and a low-cost processing flowsheet, have attracted global interest from export credit agencies, institutional investors, and industry groups across North America, Europe, Brazil, and Australia.

Viridis is now advancing into the final stages of due diligence and credit assessment with its financing partners. The company aims to reach a Final Investment Decision (FID) by the third quarter of 2026, a critical milestone that will pave the way for project execution and eventual production.

Broader Strategic Implications

Endorsements from EDC, Bpifrance, and BNDES/FINEP not only validate the economic viability of Colossus but also highlight its geopolitical significance. The project aligns with recent G7 priorities focused on securing and diversifying critical mineral supply chains in Western economies. By attracting support from multiple export credit agencies, Viridis positions Colossus as a key contributor to reducing global reliance on concentrated rare earth sources.

Managing Director Rafael Moreno emphasized the milestone’s importance, noting that the LOI from EDC adds a third international finance pillar to the company’s integrated funding strategy. This coordinated approach is designed to deliver both depth and certainty, accelerating the pathway to full project financing and execution.

Looking Ahead

While the LOI from EDC is non-binding and subject to standard due diligence and approvals, it signals growing confidence from leading international partners in Viridis’ long-term vision. The company’s ability to secure sovereign-backed financing from three major export credit agencies is a rare achievement in the mining sector and bodes well for the project’s future.

As Viridis progresses toward FID, market watchers will be keen to see how the company navigates final structuring discussions and whether it can convert these letters of interest into binding financing agreements. The coming months will be critical in determining the pace at which Colossus moves from development to production, with implications for rare earth supply dynamics globally.