Ero inks deal to earn into Vale’s Brazilian copper project

Photo: Ero Copper Corp.

Ero Copper Corp. announces it has entered into a binding term sheet with Salobo Metais S.A, part of the Vale Base Metals business to advance its Furnas copper project located in the Carajás Mineral Province in Pará State, Brazil.

The Term Sheet contemplates Ero Copper earning a 60% interest in the Project upon completion of several exploration, engineering and development milestones over a period of five years from the execution of a definitive earn-in agreement. In exchange for its 60% interest, Ero will solely fund a phased exploration and engineering work program during the earn-in period and grant VBM up to an 11.0% free carry on future Project construction capital expenditures (see "Summary of Key Terms").

"We are delighted for the opportunity to partner with VBM to advance the Furnas copper project. We are fully committed to unlocking value for all stakeholders by accelerating what we believe is a world-class project," said David Strang, Chief Executive Officer. "This partnership will leverage VBM and Ero's collective strengths as well as our shared vision for sustainable mine development."

"As construction of our Tucumã Project approaches completion in the coming year, we look forward to Furnas further contributing to the growth of copper production within the broader Carajás region and solidifying Brazil's position as a leader in low carbon-intensity production of critical minerals."

Furnas is an IOCG project located approximately 50 kilometers southeast of VBM's Salobo operations and approximately 190 kilometers northeast of Ero's Tucumã Project. Covering an area of approximately 2,400 hectares, the Project sits within fifteen kilometers of extensive regional infrastructure, including paved roads, an industrial-scale cement plant, a power substation and Vale's railroad loadout facility.

Ero's exploration and development efforts will focus on two discrete high-grade zones identified within the overall mineralized body, known as the SE and NW Zones, that extend over a combined strike length of approximately five kilometers.