How Viridis’ US$50M EFA Support Completes Colossus Project Financing Puzzle

A Major Financing Milestone Achieved

Viridis Mining and Minerals Limited has announced a significant step forward in funding its Colossus Rare Earths Project in Brazil, securing a non-binding and conditional Letter of Support (LOS) from Export Finance Australia (EFA) for up to US$50 million. This support completes the export credit agency (ECA)-led debt financing framework, complementing prior backing from Export Development Canada (EDC), Bpifrance Assurance Export, and Brazil’s BNDES.

The Colossus Project, which boasts the highest-grade and largest known Western resource of key magnetic rare earths, including critical heavy rare earths Dysprosium and Terbium, is now well-positioned to progress towards full project funding and a Final Investment Decision (FID) targeted for the second half of 2026.

Strategic and Environmental Foundations

Alongside the financing news, Viridis recently secured the Environmental Preliminary License from Minas Gerais’ State Environmental Policy Council, a crucial regulatory milestone that confirms the project’s environmental viability. This approval clears the path towards the Installation License, enabling advanced negotiations with strategic equity and offtake partners.

Viridis has also executed a US$30 million definitive strategic investment agreement with Brazilian partners ORE Investments Ltda. and Régia Capital Ltda., further strengthening the project’s capital base and local engagement. These developments underscore the project’s robust fundamentals and its alignment with global efforts to diversify rare earth supply chains, a priority highlighted by the recent G7 Critical Minerals Action Plan.

Financing Framework and Next Steps

The EFA Letter of Support is conditional on meeting eligibility criteria, including a confirmed level of Australian content in project services, and further due diligence encompassing environmental, social, financial, credit, risk, and legal assessments. The completion of this LOS enables Viridis to finalise the appointment of a Mandated Lead Arranger, who will coordinate lender engagement and due diligence processes.

With multiple ECAs now backing the project, Viridis has enhanced lender confidence and broadened access to competitive, government-backed project finance. Managing Director Rafael Moreno emphasised that this fourth international financing pillar materially strengthens Colossus as a globally strategic rare earth development.

Implications for Rare Earths and Market Positioning

Colossus’ high-grade resource and low-cost flowsheet underpin resilient project economics across commodity cycles without reliance on artificial price supports. The coordinated capital strategy, combining export credit agency support with strategic equity investments, provides depth and certainty as Viridis advances towards key pre-execution milestones.

As global demand for rare earths intensifies, particularly for critical heavy rare earths essential in clean energy and technology applications, Colossus stands out as a strategically important project. Its financing progress and environmental approvals signal strong momentum, positioning Viridis to play a significant role in the evolving global supply landscape.