Australian mining company Viridis Mining and Minerals has achieved a significant financial milestone, securing a major commitment from Canada's export credit agency for its ambitious Brazilian rare earths venture.
Major Financial Backing from North America
Export Development Canada (EDC) has offered to provide up to US$100 million (approximately A$153 million) in debt financing for the development of Viridis's Colossus rare earths project located in Brazil's mineral-rich Minas Gerais state. This substantial financial endorsement comes just one week after the company received a letter of support from France's Bpifrance export credit agency, creating back-to-back wins for the emerging critical minerals developer.
The consecutive support from two significant international finance agencies within a week underscores the global strategic importance of the Colossus project. This development aligns directly with priority actions declared at the recent G7 meeting in Toronto, where world leaders committed to securing long-term supplies of critical minerals outside of China's dominant supply chain.
Growing International Support Network
Export Development Canada represents the third international finance agency to express serious interest in the Colossus project in recent months. This follows earlier engagement from Bpifrance and two of Brazil's leading development agencies - the Brazilian National Bank for Economic and Social Development (BNDES) and the Federal Agency for Studies and Projects (FINEP).
In July, Viridis and its joint-venture entity Viridion formalised a coveted joint support plan with these Brazilian agencies, opening doors to significant funding assistance from the Brazilian government. The partnership makes the company eligible for potentially transformative non-dilutive grants, debt financing and possible equity participation under Brazil's strategic minerals initiative.
Viridion, a joint venture between Viridis and ASX-listed Ionic Rare Earths, brings valuable patented refining and recycling technology to the table, adding another dimension to Viridis's rare earths capabilities.
Additional Financial Partnerships Strengthen Position
Demonstrating further confidence in the project's potential, Viridis recently announced a binding memorandum of understanding with two Brazilian asset management firms - ORE Investments Ltda and Régia Capital Ltda. This agreement clears another pathway for staged payments of up to US$30 million (A$46 million) in private share placement funding.
ORE Investments brings deep mining sector experience to the partnership, while Régia Capital focuses on sustainable investments aligned with environmental, social and governance criteria.
Viridis Managing Director Rafael Moreno expressed enthusiasm about the developments, stating that the endorsement from one of the world's most respected export credit agencies strengthens the project's role in securing Western rare earths supply chains.
The company reports that Colossus has attracted strong interest from a wide range of export agencies, institutional investors and industry groups across North America, Europe, Brazil and Australia. This global attention is driven by the project's large-scale magnetic rare earth oxides within its massive reserve and low-cost flowsheet, expected to deliver strong returns even at current market prices.
Project Specifications and Timeline
Located in Brazil's prolific Poços de Caldas region, Colossus boasts one of the highest-grade ionic adsorption rare earths deposits found outside China. The project's 200.6 million tonnes ore reserve hosts an average level of magnetic rare earth oxides at 740 parts per million (ppm), forming part of its overall 2640ppm total rare earth oxides.
The EDC financing package includes access to potential Canadian equipment and service opportunities during project execution. The letter-of-interest remains valid until November 17, 2026, subject to standard due diligence, approvals and finance conditions.
Meanwhile, the French export agency endorsement makes the Colossus project eligible for the French Government's Garantie de Prêt Stratégique (GPS) financing program, a premier sovereign-backed initiative designed to de-risk critical industrial projects.
Under Brazil's BNDES/FINEP initiative, the country plans to inject approximately BRL$5 billion (US$938 million) into strategic mineral projects to strengthen local supply chains. Viridis received initial approval in June to progress to the next phase of this initiative.
The company recently delivered a scoping study forecasting a remarkable US$2.28 billion (A$3.50 billion) in EBITDA over a 20-year mine life, with the majority coming from neodymium and praseodymium production. Operating costs are projected at just US$6/kg of total rare earth elements, potentially positioning Colossus as one of the lowest-cost rare earths operations globally.
With numerous financing options now available, Viridis appears well-positioned to overcome the capital expenditure requirements that typically challenge mining projects, potentially establishing itself as a long-term supplier in the critical rare earths market.
