ASX-listed rare earths developer Viridis Mining and Minerals has secured commitments for up to $120-million, or A$170-million, in strategic equity from global alternative investment manager OneIM and existing investors ORE Investments and Régia Capital and a select group of additional strategic investors.

The placement provides substantial funding capacity to advance the company's Colossus project, in Brazil, from definitive feasibility study- (DFS-) stage to project execution.

Notably, OneIM will invest $75-million across two tranches, which establishes OneIM as a cornerstone institutional investor in Viridis.

In turn, Ore Investments and Régia has agreed to accelerate the next $5-million tranche of its existing strategic investment, which was previously scheduled for November. A further $20-million remains available to the company from these investors under the existing investment arrangement.

A further $40-million of equity investment has been committed by a select group of existing institutional shareholders.

Viridis says the proceeds will mainly be applied towards mobilisation of the engineering, procurement, construction and maintenance contractor for the Colossus project; placement of purchase orders for long-lead equipment and critical path items; continued operation and optimisation of the mixed rare earth carbonate demonstration plant in Brazil; and advancement of environmental approvals and further exploration adjacent to the current Colossus resource.

Having established a targeted debt framework, which includes formal support from Export Finance Australia, Export Development Canada and Bpifrance, Viridis has a clear pathway towards a final investment decision in the fourth quarter and the start of construction at Colossus.

Viridis is targeting a financing structure of about 70% senior debt and 30% equity.

At the $449-million development capital estimate outlined in the project's DFS, this implies an indicative equity requirement of about $135-million.

The new strategic equity funding commitments, coupled with the company's existing cash of $14-million and the remaining ORE Investments and Régia investment, provides Viridis with $150-million of identified equity funding sources, exceeding the amount required to build Colossus.

The company continues to engage with lenders to finalise the debt portion of the Colossus funding package.