Viridis Mining and Minerals (ASX:VMM) shares surge after agreeing to acquire Colossus REE project, Brazil

• Viridis Mining and Minerals (VMM) agrees to acquire a potential “world-class” ionic adsorption clay (IAC) rare earth element (REE) project in Brazil
• The Colossus rare earth project comprises 39 exploration licenses and two mining licenses spanning 56 square kilometres in South America’s largest alkaline complex
• The terms of the deal include US$2 million (A$2.98 million) with a US$1 million payment upfront
• The company announced it would raise A$2.2 million through a placement at 25 cents a share to fund exploration and the initial cash upfront payment
• VMM shares are up 116 per cent, trading at 54 cents at 2:03 pm AEST

Viridis Mining and Minerals (VMM) has agreed to acquire a potential “world-class” ionic adsorption clay (IAC) rare earth element (REE) project in the Poços De Caldas alkaline complex in Minas Gerais, Brazil.

The company announced it entered into binding agreements to acquire 100 per cent of the rights to the REEs comprising the Colossus rare earth project, which consists of 39 exploration licenses and two mining licenses.

These permits cover 5616 hectares, or 56 square kilometres, in South America’s largest known alkaline complex.

The terms of the deal include a total consideration of US$2 million (A$2.98 million) for the project, with a US$1 million payment upfront.

The company announced it would raise A$2.2 million through a placement at 25 cents a share to fund exploration and the initial cash upfront payment.

Ionic Rare Earths (IXR) will be the cornerstone for A$600,000 and will provide the company with additional expertise to fast-track the Colossus project into development.

“The acquisition of the Colossus project marks a transformative step for Viridis’ growth strategy and provides the company with a dominant land position directly adjacent to the world’s highest-grade ionic adsorption clay REE deposit,” VMM Executive Chair Agha Shahzad Pervez said.

“Viridis will now commence an aggressive and systematic exploration program to delineate a maiden resource to establish a supply chain of high-grade rare earth oxide for Western markets.”

VMM reported 34 shallow auger holes have been historically drilled by the previous owners to a maximum depth of three metres, with all holes returning “remarkable” grades of REE mineralisation.

Assays included three metres of 2003 parts per million (ppm) total rare earth oxides (TREO) from the surface, with mineralisation remaining open in all directions.

VMM shares were up 116 per cent, trading at 54 cents at 2:03 pm AEST.