Viridis Mining and Minerals' (ASX:VMM) non-binding Letter of Intent with Solvay is arguably the "most significant" development for the Colossus project to date, according to a Tuesday Euroz Hartleys note.

The company on Tuesday said it entered into a nonbinding letter of intent with Solvay regarding the proposed supply of mixed rare earth carbonate (MREC) from its Colossus rare earth project in Brazil.

The development is a transformational catalyst for the company, the note said, as it added that Solvay is targeting supplying 30% of the European market for magnet metals by calendar 2030, with Colossus

evidently selected as Solvay's preferred source of MREC from calendar 2028.

Euroz Hartleys maintained a speculative buy rating on Viridis Mining and Minerals and a price target of AU$5.

The company's shares fell 8% in recent Tuesday trade.