VMM signs key agreement with Invest Minas and the Municipality of Poços De Calda, expected to expedite the regulatory and environmental approvals process
This dual agreement places Colossus amongst a select group of high-quality mining projects in the mineral-rich state of Minas Gerais
A similar agreement was previously signed between Invest Minas and Sigma Lithium Resources
Special Report: Rare earths hopeful Viridis Mining has received the support of the State of Minas Gerais and the local municipality of Poços De Caldas via two crucial, non-binding MoUs which pave the way for its Colossus project to clear regulatory and infrastructure hurdles.
Viridis Mining (ASX:VMM) is moving quickly with exploration and development at the Colossus ionic adsorption clay rare earth (REE) project in Brazil, having raised $4.5m through a heavily oversubscribed placement in February to expand exploration work and finalise a maiden resource.
Colossus, directly adjacent to Meteoric Resources’ (ASX:MEI) 409MT Caldeira project, is early stage but is already shaping as a high-grade opportunity for VMM after the third batch of assay results from maiden drilling returned an average 3,002ppm TREO result across 113 drill holes.
VMM has now inked two non-binding memorandum of understanding agreements (MoUs) with the State Government of Minas Gerais and the local Municipality of Poços De Caldas, as well as the State Secretariat for Economic Development and the Instituto de Desenvolvimento Integrado de Minas Gerais (Invest Minas), to fast-track its flagship project’s development.
Pic: Supplied
De-risking development timeline
Regulatory approvals are typically one of the biggest risks on any project, and to have the backing and support from state and local governments to prioritise the approvals and licensing process will go a long way in de-risking VMM’s development timeline for Colossus.
The MoU with the Government of Minas Gerais and Invest Minas is a selective initiative from the State to form strategic partnerships with private companies that will strengthen the local economy.
Meanwhile, the selection by Invest Minas at such an early stage in the development journey highlights the importance of the Colossus project at local, state and federal levels.
Pic: Supplied
Similar dual agreement signed with Sigma Lithium
This dual agreement places Colossus amongst a select group of high-quality mining projects in the mineral-rich state of Minas Gerais.
A similar agreement was previously signed between Invest Minas and Sigma Lithium Resources (NASDAQ: SGML, TSXV: SGML) which led to the rapid development, licensing and construction of the Grota Do Cirilo project to first production in a matter of years.
The signing event was hosted at the Palace Casino, Poços De Caldas and was attended by numerous industry leaders, local community figures, government bodies, politicians and journalists.
Viridis In-Country Team and Executives present during the signing ceremony. Pic: Supplied (VMM)
‘Nothing less than extraordinary’
“The interaction and support from the Government of Minas Gerais and its economic development arm of Invest Minas, and the town of Poços De Caldas has been nothing less than extraordinary,” VMM chief executive Rafael Moreno says.
“The recent signing ceremony attended by Minas Gerais State Governor Romeu Zema Neto, Director of Invest Minas Ronaldo Barquete and Mayor of Poços de Caldas Sergio Antônio de Azevedo is clear evidence of the intent from all parties to accelerate the Colossus Project through the various development stages.”
Viridis executives and industry figures post the signing ceremony. Pic: Supplied (VMM)
Attracting local investment
“The project foresees the possibility of an ore processing and treatment plant on the site,” Secretary of State for economic development Fernando Passalio says.
“This will boost the attraction of other companies that use these elements as raw materials for products and will strengthen the production chain as well as generate more jobs and revenue.”
This article was developed in collaboration with Viridis Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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