Viridis jumps 39% on green nod for Brazilian rare earths

Viridis Mining and Minerals share prices leapt a whopping 39 per cent to a high of $1.39 on news of a Preliminary Environmental License (PL) for its Colossus rare earths project in Brazil. The green nod effectively clears the biggest regulatory hurdle in the project’s development path, following a unanimous vote by state authorities.

The approval, granted by the Brazilian state of Minas Gerais on Friday, formally endorses the environmental viability of Colossus and opens the door for the next and more mechanical stage of approvals - the Installation License - which allows construction to commence.

Viridis’ share price took a hit two weeks ago, retreating to a stinging 88 cents in sympathy with fellow Brazilian rare earths explorer Meteoric Resources.

Meteoric copped a short-term bashing after state environmental agency FEAM sought more time to respond to questions from the Federal Prosecutor’s Office over the project’s preliminary environmental licence at Caldeira.

Today, Meteoric also revealed that it has obtained the preliminary approval for its rare earth ionic clay project - news that was no doubt received with a massive sigh of relief by its board.

For rare earth projects in Brazil, the PL is widely regarded as the most complex and time‑consuming of the three environmental approvals. Clearing it materially de‑risks the development pathway and shifts the conversation from “if” to “how” and “when”.

Colossus sits near the city of Poços de Caldas in Minas Gerais and comprises ionic adsorption clay mineralisation — the same rare earth style that underpins much of China’s deposits, giving it a dominant position in the global supply chain.

Colossus sits in a well-established mining jurisdiction with existing industrial and infrastructure support, giving the project a clear head start. The newly granted licence covers Viridis’ Northern Concessions, which underpin the initial mine plan and host a substantial 215-million-tonne mineral resource.

More recently, those concessions were expanded by 46 per cent, consolidating the company’s landholding around the planned production hub and pulling in highly prospective ground where elevated dysprosium and terbium oxide values above 500 parts per million have already been identified.

Management says the unanimous vote by all members of the state environmental council validates years of technical, environmental and community engagement work and provides confidence that the remaining licensing steps are largely procedural.

The timing would not be lost on the market. Colossus now sits at the intersection of three powerful tailwinds — regulatory certainty, project financing momentum and an increasingly strategic global outlook for non‑Chinese rare earths supply.

Securing the Preliminary License for Colossus is a defining milestone for Viridis and a clear validation of the quality of our technical, environmental and ESG work. As the most complex and time-intensive of the three environmental approvals, this decision materially de-risks the Project and confirms Colossus as one of the most advanced ionic clay rare earth developments globally.

Over recent months, Viridis has assembled a rare collection of sovereign‑backed financial support. Brazil’s development banks, BNDES and FINEP, have selected the project for funding under their strategic minerals program.

Adding to that, France’s export credit agency, Bpifrance, has issued a formal letter of support and Export Development Canada (EDC) has followed with a letter of interest for up to US$100 million (A$150 million) in potential project debt.

A further US$30 (A$45) million binding equity agreement with Brazilian asset managers ORE Investments and Régia Capital has also been structured in staged tranches, designed to carry the project through to final investment decision.

That level of institutional backing is rare for a pre-construction rare earths project and appears to underscore the scale and quality of the Colossus asset. A completed pre‑feasibility study has already outlined a long‑life operation, underpinned by a 200‑million‑tonne ore reserve and strong exposure to the high‑value magnetic rare earths neodymium, praseodymium, dysprosium and terbium.

Colossus also stands apart from many global peers due to its processing strategy. The project is built around a low-impact flowsheet that uses mild reagents, extensive water recycling and progressive backfilling of inert residues into mined-out areas to produce a mixed rare earths carbonate product.

With no need for a separate tailings storage facility, the approach has resonated strongly with Brazilian regulators and local communities.

Parallel to the mine development, Viridis is advancing a rare earths research and processing centre just seven kilometres from the project. The facility will house a demonstration-scale plant to validate processing parameters, produce offtake samples and train operators ahead of full-scale production.

With environmental approval now secured, attention now turns to the Installation License submission, completion of the definitive feasibility study and finalisation of project financing — all of which are already underway.

For Viridis, the hard yards of regulatory risk appear largely behind it. From here, progress will be measured less by courtroom patience and more by engineering schedules, procurement lead times and construction milestones.

Things could get interesting from here.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au