Shareholders of Viridis Mining and Minerals (ASX: VMM) have received an early Christmas present, with the company announcing on 22 December 2025 that it has secured the Preliminary License (PL) for its flagship Colossus Rare Earth Project in Minas Gerais, Brazil. This landmark environmental approval is a significant step forward, fundamentally reducing the risk associated with the project's development timeline and paving the way for its progression towards production.
What happened
Viridis confirmed the Preliminary License (PL) was granted by COPAM on 19 December 2025, following the final approval of the Environmental Impact Assessment (EIA/RIMA). This news comes swiftly after a trading halt requested on 19 December, which was initiated amid media speculation surrounding the very approval now confirmed. This positive outcome resolves the uncertainty that prompted the halt, validating Viridis' previous updates throughout December regarding the favourable technical assessment from FEAM and the diligent addressing of MPF concerns, which saw Colossus re-listed for COPAM deliberation.
Adding to the good tidings, Viridis also announced a substantial 46% expansion of its Northern Concessions, significantly increasing its landholding and enhancing the project's long-term opportunities.
Why it matters
The granting of the Preliminary License is a pivotal moment for Colossus. It validates the project's environmental and technical viability, effectively reducing development timeline risks and enabling the submission of the critical Installation License (IL). This moves Viridis closer to a Final Investment Decision (FID) and the commencement of construction.
Financing momentum is also strong, with a US$30 million definitive financing agreement already in place with ORE Investments and Régia Capital. This is further augmented by robust support from Export Credit Agencies (ECAs) and development banks like EDC, Bpifrance, and BNDES, providing a solid foundation for funding future development. The expanded Northern Concessions are not just about land; they host a significant 215 Mt Mineral Resource and 97.4 Mt Probable Ore Reserve with an average MREO of 698 ppm, adding substantial weight to Colossus' already impressive resource base, which, according to the September 2025 Annual Report, includes a broader MRE of 493 Mt at 2508 ppm TREO.
Looking ahead
With the Preliminary License secured, Viridis is now focused on the next crucial steps. The Definitive Feasibility Study (DFS) is ongoing with Hatch, and the company aims for the Installation License (IL) and Offtake License (OL) milestones to be achieved promptly. The target for Final Investment Decision (FID) is Q3 2026, with construction projected to commence in the second half of 2026, leading to targeted production in 2028.
Exploration efforts will continue, particularly focused on converting inferred resources to measured/proven categories, which could further enhance the project's valuation. Additionally, plans for a CPTR and MREC demonstration plant are underway, highlighting Viridis' commitment to advancing its processing capabilities. The expanded Northern Concessions provide excellent optionality for future resource growth and operational flexibility, positioning Colossus as a key player in the global rare earth market.
