Viridis Mining and Minerals (ASX:VMM) could be valued at about AU$1.52 billion, or AU$8 per share, based on the valuation multiple implied by Lynas Rare Earths' (ASX:LYC) acquisition of Meteoric Resources, Euroz Hartleys said in an Oct. 2 note.

The deal values Meteoric at about AU$968 million on a fully diluted basis, with its shareholders set to own roughly 5.9% of the Lynas group, while Euroz Hartleys estimates an enterprise value of about AU$930 million for Meteoric, compared with AU$515 million for the company.

The company's Colossus project has a spot post-tax net present value of $1.2 billion, compared with $847 million for Meteoric's Caldeira, reflecting lower operating costs, higher mixed rare earth carbonate (MREC) payability and lower capital expenditure.

The investment firm said Colossus is one of the most advanced ionic adsorption clay projects outside China, capable of producing MREC with around 67% mixed rare earth oxides content, including 2.8% combined dysprosium and terbium.

The firm highlighted the binding Solvay offtake agreement, project debt financing and the installation license award as key catalysts, all expected in the December quarter.

Euroz Hartleys maintains a speculative buy rating and a AU$6.30 per share price target on Viridis Mining and Minerals.

Viridis Mining's shares rose around 2% in recent Monday trading, while Lynas shares fell 1%.