Ero Copper Announces US$105 Million Bought Deal Financing
TSX: ERO
NYSE: ERO
November 6, 2023
Ero Copper Announces US$105 Million Bought Deal Financing
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero"
or the “Company”) has announced today that it has entered into an agreement with
a syndicate of underwriters, led by BMO Capital Markets (collectively, the
“Underwriters”), under which the Underwriters have agreed to purchase, on a
bought deal basis, 8,510,000 common shares (the “Common Shares”), at a price of
US$12.35 per Common Share for gross proceeds of approximately US$105 million
(the “Offering”). The Company has granted the Underwriters an option, exercisable at
the offering price for a period of 30 days following the closing of the Offering, to
purchase up to an additional 15% of the Offering to cover over-allotments, if any,
and for market stabilization purposes. The Offering is expected to close on or about
November 14, 2023 and is subject to the Company receiving all necessary regulatory
approvals, including the approval of the Toronto Stock Exchange and New York Stock
Exchange.
The net proceeds from the Offering will be used to advance growth initiatives at the
Company’s Tucumã Project and Caraíba Operations, advance regional exploration
programs, as well as for general corporate and working capital purposes.
The Common Shares are being offered for sale pursuant to the Offering in all of the
provinces and territories of Canada, other than Quebec, by way of a Canadian
prospectus supplement (the “Prospectus Supplement”) to the Company’s
Canadian short form base shelf prospectus dated August 18, 2023 (the “Base Shelf
Prospectus”). The Common Shares are being offered for sale in the public
offering in the United States pursuant to an effective registration statement on
Form F-10 (the “Registration Statement”) filed under the Canada/U.S. multi-
jurisdictional disclosure system. Before investing, prospective purchasers in
Canada should read the Prospectus Supplement, the Base Shelf Prospectus,
and the documents incorporated by reference therein, and prospective
purchasers in the United States should read the Registration Statement and the
documents incorporated by reference therein for more complete information
about the Company and the Offering. Common Shares may also be offered on a
private placement basis in other international jurisdictions in reliance on
applicable private placement exemptions.
Copies of the Prospectus Supplement, the Base Shelf Prospectus, and the
Registration Statement, when available, may be obtained upon request in Canada by
contacting BMO Nesbitt Burns Inc., Brampton Distribution Centre C/O The Data
Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 by telephone
at 905-791-3151 Ext 4312 or by email at [email protected], and in
the United States by contacting BMO Capital Markets Corp., Attn: Equity Syndicate
Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, or by telephone
at (800) 414-3627 or by email at [email protected]. Copies of the applicable
offering documents, when available, can be obtained free of charge under the
Company’s profile on SEDAR+ at www.sedarplus.ca/ landingpage/ and EDGAR at
www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer
to buy these securities, nor shall there be any sale of these securities in any state
or jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state or
jurisdiction.
ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth, low carbon-intensity copper producer with
operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's
primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração
Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly
known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia
State, Brazil and include the Pilar and Vermelhos underground mines and the
Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança),
an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6%
of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known
as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato
Grosso, Brazil. Additional information on the Company and its operations, including
technical reports on the Caraíba Operations, Xavantina Operations and Tucumã
Project, can be found on SEDAR+ (www.sedarplus.ca/ landingpage/), and on
EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto
Stock Exchange and the New York Stock Exchange under the symbol “ERO”.
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations &
Sustainability
(604) 335-7504
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within
the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking
terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”,
“view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements
with respect to the general terms of the Offering, the closing date of the Offering, regulatory approvals in respect of the Offering, and the use of proceeds from the Offering.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance
or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Base
Shelf Prospectus and the documents incorporated by reference therein. The risks discussed in this press release and in the Base Shelf Prospectus and the documents incorporated by
reference therein are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Although the Company has attempted to identify important factors
that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other
factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s
actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and
other factors, including, without limitation, those referred to herein and in the Base Shelf Prospectus and the documents incorporated by reference therein.
The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may
be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the Base Shelf Prospectus and the
documents incorporated by reference therein, the Company has made certain assumptions about, among other things: continued effectiveness of the measures taken by the Company
to mitigate the possible impact of COVID-19 on its workforce and operations; favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable
terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of
exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations and the Tucumã
Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and
expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates; operating conditions being favourable such that the Company is able to
operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks (including COVID-19),
political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing
approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of
equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the
Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release,
these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could
cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions
that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed
in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.