Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or
the “Company”) is pleased to announce that it has priced an
offering of US$400 million aggregate principal amount of Senior
Notes due 2030 (the “Notes”). Interest on the Notes, which will be
issued at par, will accrue at an annual rate of 6.50%, payable
semi-annually in arrears. The Notes will mature on February 15,
2030. The offering is expected to close on February 2, 2022,
subject to customary closing conditions.
The Notes will be unconditionally guaranteed on
a senior unsecured basis by the Company's 99.6%-owned Mineração
Caraíba S.A. subsidiary. The Company intends to use the net
proceeds from this offering, together with cash on hand, to repay
the outstanding balance under its senior secured revolving credit
facility of approximately $50 million, for capital expenditures
related to the construction of the Boa Esperança Project, which is
expected to commence in Q2 2022 subject to receipt of approval by
the Board of Directors of the Company, and for general corporate
purposes. Conditioned on the successful closing of the proposed
Notes offering, the Company expects to reduce the size of its
senior secured revolving credit facility from $150 million to $75
million.
The Notes will be offered and sold in the United
States only to persons reasonably believed to be qualified
institutional buyers in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the "Securities Act"),
and to non-U.S. persons outside the United States in reliance on
Regulation S under the Securities Act. The Notes will be offered
and sold in Canada on a private placement basis pursuant to certain
prospectus exemptions.
The offer and sale of the Notes will not be
registered under the Securities Act and the Notes may not be
offered or sold in the United States or to U.S. persons absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws. This news release shall not constitute an offer to sell the
Notes, nor shall there be any offer or sale of the Notes in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver,
B.C., is focused on copper production growth from the MCSA Mining
Complex located in Bahia State, Brazil, with over 40 years of
operating history in the region. The Company's primary asset is a
99.6% interest in the Brazilian copper mining company, MCSA, 100%
owner of the MCSA Mining Complex, which is comprised of operations
located in the Curaçá Valley, Bahia State, Brazil, wherein the
Company currently mines copper ore from the Pilar and Vermelhos
underground mines, and the Boa Esperança development project, an
IOCG-type copper project located in Pará, Brazil. The Company also
owns 97.6% of the NX Gold Mine, an operating gold and silver mine
located in Mato Grosso, Brazil.
ERO COPPER
CORP. |
|
|
|
/s/
David Strang |
For further information contact: |
David Strang, CEO |
Courtney Lynn, VP, Corporate Development & Investor
Relations |
|
(604) 335-7504 |
|
info@erocopper.com |
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. Such forward-looking statements include, without
limitation, statements with respect to the successful closing and
the closing date associated with the Offering, the intended use of
proceeds from the offering and the Company's plans to reduce the
size of its senior secured revolving credit facility to $75
million. These forward-looking statements and information reflect
the Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable, are inherently subject to significant
operational, business, economic, market and regulatory
uncertainties and contingencies. These assumptions include the
timing and success of the Notes offering.
Furthermore, such forward-looking statements
involve a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions,
activities, results, performance or achievements of the Company to
be materially different from any future plans, intentions,
activities, results, performance or achievements expressed or
implied by such forward-looking statements. Such risks include,
without limitation the risk factors listed under the heading “Risk
Factors” in the Company's AIF filed with Canadian securities
regulatory authorities and with the U.S. Securities and Exchange
Commission.
Although the Company has attempted to identify
important factors that could cause actual actions, events,
conditions, results, performance or achievements to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events, conditions,
results, performance or achievements to differ from those
anticipated, estimated or intended.
The Company cautions that the foregoing lists of
important assumptions and factors are 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 herein. 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.
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