Shares in Viridis Mining and Minerals have rocketed by a staggering 39 per cent following a pivotal environmental approval for its flagship Colossus rare earths project in Brazil.
The company's stock price climbed to a high of $1.39 on Monday after the Brazilian state of Minas Gerais granted a Preliminary Environmental License (PL). This unanimous decision by state authorities clears the most significant regulatory obstacle in the project's development pathway.
A Defining Milestone for Project Development
The Preliminary License formally endorses the environmental viability of the Colossus project, which is located near Poços de Caldas. It paves the way for the next critical approval, the Installation License, which would permit construction to begin.
For rare earths ventures in Brazil, the PL is widely considered the most complex and time-consuming of the three required environmental approvals. Successfully obtaining it materially de-risks the project's future, shifting the focus from 'if' it will proceed to 'how' and 'when'.
Viridis' Managing Director, Rafael Moreno, described the approval as a defining milestone and a validation of the company's technical, environmental, and ESG work. He stated it confirms Colossus as one of the most advanced ionic clay rare earth developments globally.
Project Details and Strategic Tailwinds
The Colossus project hosts ionic adsorption clay mineralisation, the same style that underpins much of China's dominant rare earths supply. The newly granted licence covers the Northern Concessions, which form the basis of the initial mine plan and contain a substantial 215-million-tonne mineral resource.
These concessions were recently expanded by 46 per cent, consolidating land around the planned production hub and incorporating highly prospective ground. Notably, areas with elevated levels of the high-value magnetic rare earths dysprosium and terbium have already been identified.
The project now sits at the convergence of several powerful trends: regulatory certainty, strong project financing momentum, and a growing global strategic focus on securing non-Chinese rare earths supply.
Financial Backing and Innovative Approach
Viridis has assembled an impressive suite of institutional financial support in recent months. Brazilian development banks BNDES and FINEP have selected Colossus for funding under their strategic minerals program.
Furthermore, France's export credit agency Bpifrance has issued a formal letter of support, and Export Development Canada (EDC) has expressed interest in providing up to US$100 million (A$150 million) in potential project debt. A separate US$30 million (A$45 million) binding equity agreement is also in place with Brazilian asset managers.
Colossus distinguishes itself through its processing strategy, which uses a low-impact flowsheet with mild reagents, extensive water recycling, and progressive backfilling of inert residues. This approach, which eliminates the need for a separate tailings storage facility, has resonated with both regulators and local communities.
With the key environmental hurdle now cleared, Viridis will focus on submitting the Installation License application, completing a definitive feasibility study, and finalising project financing—all of which are reportedly already in progress.
