Viridis Mining Lands US$15M Brazilian Government Loan to Fund Rare Earth Project
Key Takeaways
- BNDES has approved a R$77.5 million (approximately US$15 million) financing facility for Viridis Mining's Colossus project, carrying a 16-year tenor at an indicative current cost of approximately 4.8% per annum — highly competitive terms for a project of this scale.
- The facility is non-dilutive, meaning existing shareholders are not diluted, and a meaningful portion of eligible expenditure has already been incurred, providing a near-term cash reimbursement benefit rather than purely future-dated funding.
- Combined with US$154 million in identified equity funding cornerstoned by One Investment Management, Viridis has now secured approximately US$169 million of the US$449 million Colossus development capital requirement.
- The remaining senior debt requirement of approximately US$280 million is described as well advanced, with YEDC, commercial banks, EDC Canada, Bpifrance, and EFA Australia all engaged in the process.
- Viridis and BNDES are also working to identify larger-scale financing opportunities for Colossus, signalling the current facility may be the first of multiple tranches of Brazilian government-backed support.
Brazilian government backs Viridis with R$77.5M in long-term, low-cost financing
Viridis Mining and Minerals (ASX: VMM) has announced that Brazil’s national development bank, BNDES, has approved a R$77.5 million (approximately US$15 million) financing facility for Viridis Mineração Ltda., the Company’s wholly owned Brazilian subsidiary. The approval converts the Joint Support Plan announced in July 2025 into tangible, approved financing, representing a non-dilutive funding milestone for the Colossus Rare Earth Project.
The facility carries a 16-year total tenor, comprising a four-year grace period followed by a 12-year amortisation period, at an interest rate of TR + 2.70% per annum. Based on the annualised TR of approximately 2.1% as of August 2026, this equates to an indicative current financing cost of approximately 4.8% per annum. The approval further demonstrates the strategic importance Brazilian development institutions place on establishing domestic rare earth processing capability.
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What the BNDES facility means for Colossus’ funding stack
Funding position further strengthened
A significant portion of the eligible expenditure supported by the facility has already been incurred by Viridis in developing and establishing the Rare Earths Research and Processing Centre (CPTR). The facility is expected to reimburse a meaningful portion of this expenditure, providing a near-term cash benefit rather than purely future-dated funding.
The table below presents the Colossus development capital funding position as disclosed in the announcement:
| Component | Amount |
|---|---|
| Total Colossus development capital | US$449 million |
| Identified equity funding (exceeds US$135M target) | US$154 million |
| BNDES facility approved | Up to US$15 million |
| Remaining senior debt requirement | ~US$280 million |
The US$154 million in identified equity funding references the strategic placement cornerstoned by One Investment Management (OneIM), announced on 20 August 2026. Viridis continues to advance its senior debt financing process with domestic and international lenders. The source graphic identifies the following parties engaged in this process: YEDC, commercial banks, EDC Canada, Bpifrance, and EFA Australia. The senior debt financing process is described as well advanced.
The US$154M equity funding cornerstoned by One Investment Management, approved in August 2026, forms the equity layer of the Colossus capital stack that the BNDES facility now complements with low-cost government-backed debt.
Understanding BNDES and why Brazilian government backing matters for rare earth investors
BNDES is Brazil’s national development bank, a federal institution that provides long-term financing to strategic industries aligned with national economic objectives. It plays a central role in directing capital toward sectors Brazil considers priorities for industrialisation.
The specific credit programme under which this facility was approved is the BNDES Mais Inovação – Investment in Innovation Subprogram, which targets projects with intensive research, development and innovation (RD&I) characteristics. Rare earths were identified as a priority sector under Brazil’s strategic minerals initiative, given the energy transition’s mounting demand for rare earth elements. Brazil’s ionic adsorption clay deposits, of the type found at Colossus, represent a meaningful alternative source of supply.
The 200.6Mt rare earth reserve declared for the Colossus project establishes the resource scale that justifies the US$449 million development capital programme and gives BNDES and potential senior lenders a quantified geological basis for assessing project economics.
For investors, the non-dilutive nature of this financing is material. Government-backed debt of this kind does not require new equity issuance, meaning existing shareholders are not diluted. A 4.8% per annum indicative financing cost over a 16-year term represents highly competitive capital for a project of this scale, and the BNDES stamp of approval carries weight with other lenders evaluating the project’s senior debt financing.
The CPTR — from lab to demonstration-scale production
The Rare Earths Research and Processing Centre (CPTR), located in the Industrial District of Poços de Caldas, Minas Gerais, is the operational asset directly supported by this financing facility. It is central to Viridis’ strategy to progressively develop, validate and optimise the processing technology required for the Colossus project.
The CPTR produced its first Mixed Rare Earth Carbonate (MREC) in May 2026, a milestone referenced in VMM’s ASX announcement dated 26 May 2026, and continues demonstration-scale production. The facility’s technical role is to replicate key operating conditions of the proposed industrial-scale Colossus processing facility, taking the project’s flowsheet from laboratory test work into continuous operation.
Current activities at the CPTR include:
- Demonstration-scale MREC production
- Metallurgical optimisation
- Process validation and equipment testing
- RD&I activities supporting Colossus technical development
This progressive approach, moving from laboratory through demonstration to eventual commercial scale, is designed to de-risk the Colossus flowsheet before the project reaches full-scale execution.
Management and BNDES president speak to the strategic importance
Managing Director Rafael Moreno framed the approval as delivery against an objective set when the Joint Support Plan was first announced:
Rafael Moreno, Managing Director
“The approval of this financing by BNDES is an excellent outcome for Viridis and another important endorsement of what we are building in Brazil. A 16-year facility at an indicative current cost of approximately 4.8% represents exceptionally attractive funding and demonstrates the strength of the support available in Brazil for strategic projects such as Colossus. When Viridis was selected by BNDES and FINEP last year, our objective was to convert that support into tangible funding for the development of our rare earth activities in Brazil. This R$77.5 million approval is an important delivery against that objective and, together with the US$154 million of equity funding, further strengthens our funding position as we advance the remaining senior debt financing required to deliver Colossus. The CPTR has become an important part of the technical development of Colossus, taking our flowsheet from laboratory test work into continuous demonstration-scale operation and MREC production in Brazil. We are pleased to continue building our relationship with BNDES as we invest in the technology, processing capability and industrial infrastructure required to help establish Brazil as a globally significant rare earth producer.”
BNDES President Aloizio Mercadante pointed to the broader national significance of the investment:
Aloizio Mercadante, President, BNDES
“The BNDES investment has the potential to foster domestic rare earth production, reduce imports, promote exports and consolidate Brazil’s position as a strategic global supplier of critical minerals for the energy transition. It will also contribute to the development of a domestic supplier chain, support the creation of skilled jobs and foster an innovation ecosystem in the Poços de Caldas region.”
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What comes next for Viridis
Viridis and BNDES are now progressing customary documentation and execution of the financing facility. The Company is also working closely with BNDES to identify and evaluate larger-scale financing opportunities for Colossus development, aligned with Brazil’s broader industrialisation and strategic minerals objectives and the development of a domestic rare earths value chain.
The senior debt financing process with domestic and international lenders is continuing and described as well advanced in the announcement. No further timing or milestones beyond these points were disclosed.
Ready to Learn More About the Colossus Rare Earth Project?
Brazil’s national development bank, BNDES, has approved a R$77.5 million (approximately US$15 million) low-cost, non-dilutive financing facility for Viridis Mining and Minerals’ Colossus project — a significant vote of confidence in the project’s strategic importance to Brazil’s rare earth ambitions. Combined with US$154 million in identified equity funding, the Colossus capital stack is taking meaningful shape ahead of the remaining senior debt process.
Explore the full details of this financing milestone and what it means for the project’s path to production by visiting the Viridis Mining and Minerals investor profile on Discovery Alert.