Viridis receives LoS for Brazil’s Colossus Rare Earths project

Viridis Mining and Minerals has obtained a non-binding, conditional letter of support (LoS) from Export Finance Australia (EFA), finalising its export credit agency (ECA)-driven project debt financing framework for the Colossus Rare Earths project in Brazil.

The LoS signals EFA’s potential interest in offering a direct lending debt facility of up to A$77m, which would help fund the project’s execution phase and move Viridis closer to securing full project financing and reaching a final investment decision (FID).

EFA’s support is based on the potential involvement of Australian service providers during the project’s development and execution.

This prospective backing adds to earlier support from Export Development Canada, Bpifrance Assurance Export and the Brazilian National Bank for Economic and Social Development.

The combined LoS provide clarity on total debt capacity, allowing Viridis to proceed with appointing a mandated lead arranger to coordinate lenders, oversee due diligence and manage the project finance process.

The Colossus pre-feasibility study (PFS) estimates capital costs at $286m, or $356m including a 25% contingency.

With EFA’s LoS in place, the targeted project debt package is now fully covered.

This enables Colossus to advance towards securing complete project financing and achieving an FID, which is anticipated in the second half of 2026.

The project has also secured its preliminary environmental license following unanimous approval by the State Environmental Policy Council of Minas Gerais, confirming its environmental feasibility and paving the way for the installation licence.

This achievement allows the company to progress advanced negotiations with key equity investors and offtake counterparties.

Viridis has already finalised a definitive strategic investment agreement worth $30m with ORE Investments and Régia Capital.

The Colossus deposit contains the highest-grade and largest identified Western resource of the four main magnetic rare earth elements, including the critical heavy rare earths terbium and dysprosium.

Viridis managing director Rafael Moreno said: “Securing a non-binding LoS from EFA represents the final cornerstone in our Colossus debt financing strategy.

“EFA’s LoS adds a fourth and final international financing pillar to our capital strategy, materially enhancing lender confidence and broadening our access to competitive, government-backed project finance.”

“Viridis receives LoS for Brazil’s Colossus Rare Earths project” was originally created and published by Mining Technology, a GlobalData owned brand.