The Viridis Mining and Minerals Ltd (ASX: VMM) share price is in focus after the company secured up to US$120 million (about AU$170 million) in new strategic equity funding to fully address its equity requirements for the flagship Colossus Project, following the completion of its Definitive Feasibility Study.
Image source: Getty Images
What did Viridis Mining and Minerals report?
- Secured commitments for up to US$120 million (~AU$170 million) in strategic equity funding before costs
- Combined with existing cash and undrawn facilities, identified equity funding totals approximately US$154 million, exceeding the US$135 million indicative equity requirement for Colossus
- One Investment Management to invest up to US$75 million across two tranches, becoming a key institutional investor
- ORE Investments Ltda. and Régia Capital Ltda. accelerated their next US$5 million tranche with a further US$20 million available
- US$40 million raised from a select group of mostly Brazilian institutional investors
- Placement issue price of AU$3.79 per share, representing a 10% discount to last close
What else do investors need to know?
Viridis now has a clear pathway to deliver the Colossus Project, with sufficient equity identified and strong support from both international and domestic investors. The company plans to use these funds to launch key activities, including project execution tasks like appointing the EPCM contractor and placing orders for long-lead equipment.
The company's project financing structure will target 70% senior debt and 30% equity, with debt funding discussions well advanced and support letters in place from Export Finance Australia, Export Development Canada, and Bpifrance. Advanced negotiations with the Brazilian National Bank and other agencies also provide multiple options to support project development.
What did Viridis Mining and Minerals management say?
Managing Director Rafael Moreno said:
This is a significant achievement for Viridis. Following completion of the DFS, we have now secured sufficient funding sources to fully address the indicative equity requirement for Colossus, materially de-risking the Project's funding pathway as we transition into execution.
We are very pleased to welcome OneIM as a cornerstone institutional investor, alongside the continued support of ORE/Régia and a select group of strategic investors. Importantly, the majority of the Placement capital has been raised from leading Brazilian investors, demonstrating strong domestic conviction in Colossus and alignment with our strategy to maximise rare earth industrialisation and downstream capability in Brazil.
With the equity requirement addressed, our focus is now firmly on execution, finalising binding offtake and senior debt, appointing the EPCM contractor and placing orders for key long-lead equipment. With the DFS complete, funding significantly de-risked and strong strategic partners alongside us, we are very well positioned to advance Colossus through FID and into construction.
What's next for Viridis Mining and Minerals?
Viridis is focused on moving the Colossus Project from DFS into execution. Top priorities include finalising binding offtake agreements, securing the senior debt package, and commencing construction activities. The company's strong funding position should help de-risk these critical next steps.
The board is working towards a Final Investment Decision in the fourth quarter of 2026. Plans also include ongoing optimisation at its demonstration plant, progressing environmental approvals, further exploration, and drilling around the existing resource.
Viridis Mining and Minerals share price snapshot
Over the past 12 months, Viridis Mining and Minerals shares have risen more than 200%, far outpacing the All Ordinaries Index (ASX: XAO).
