Viridis Mining and Minerals Secures Long-Term Offtake Agreement for Colossus Project MREC

What happened

Viridis Mining and Minerals signed a binding six-year offtake agreement with Rhodia Operations, a Solvay subsidiary, for mixed rare earth carbonate from its Colossus project in Brazil. Deliveries are targeted to start with first production in 2028, with lower initial volumes and binding take-or-pay commitments in 2029, covering about 70% of forecast production.

Confirmed

Global impact / market context

The contract gives Viridis a committed sales route for much of Colossus’s planned output, which can improve revenue visibility and support project financing decisions. Take-or-pay commitments mean the buyer must pay for agreed minimum volumes, reducing the risk that contracted production lacks a customer.

Analyst inference

The agreement covers seven payable rare earth elements and gives Solvay first offer on remaining planned production. This could help Viridis capture value across a wider product mix, while leaving some output beyond the minimum volumes subject to future sales terms and demand.

Analyst inference

What to watch

1. Watch for progress toward Colossus’s targeted 2028 first production, since delays could postpone deliveries and the revenue expected under the agreement. Analyst inference
2. Check whether the lower initial volumes and 2029 take-or-pay commitments proceed as planned, and whether the contracted quantities match the project’s production ramp-up. Analyst inference
3. Track financing and project development updates, because the agreement covers about 70% of forecast MREC output but does not itself confirm construction funding or completed production. Analyst inference

Evidence

• smallcaps.com.au