Viridis Signs Binding Solvay Offtake for Colossus MREC

Viridis (ASX:VMM) executed a binding long-term offtake agreement with Rhodia Operations SAS, a member of the Solvay S.A. group, giving its Colossus Rare Earth Project in Brazil a contracted buyer for mixed rare earth carbonate (MREC) while it works to finalise debt financing.

The initial term runs from first production, targeted for 2028, to 31 December 2034, with lower committed volumes during ramp-up. Binding take-or-pay commitments start on the earlier of Commercial Operations Date or 1 January 2029. A further five-year renewal period is contemplated by mutual agreement. Commitments cover seven payable rare earth elements: neodymium, praseodymium, dysprosium, terbium, samarium, yttrium and gadolinium. Minimum MREC volumes are approximately 70% of Colossus forecast MREC production across the initial term, and Solvay holds a right of first offer over the remainder but is not obliged to buy beyond its minimums. Minimum volumes of the four principal magnetic rare earths, multiplied by contractual price floors and net of payability factors, underpin minimum revenue of approximately US$915 million, subject to Viridis delivering the contracted volumes. Samarium, yttrium and gadolinium are excluded because no price floors apply.

A Licensing and Technical Services Agreement with Solvay is separately contemplated and not yet signed. Detailed pricing formulas are not disclosed. Viridis lists debt financing, a Final Investment Decision and regulatory approvals for the licensed technology in Brazil among its risks.