(all amounts in US dollars, unless otherwise noted)
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the
“Company”) is pleased to announce it has entered into a binding term sheet ("Term Sheet")
with Salobo Metais S.A, part of the Vale Base Metals business ("VBM") to advance its Furnas
copper project ("Furnas" or the "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. A map of the Carajás Mineral Province and
Project location is shown in Figure 1.
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. The Company's initial work
program will include infill drilling to increase confidence around, and continuity of, these two
high-grade zones, as well as extensional drilling to depth where limited prior drilling
suggests increasing grades and thickness. Known high-grade mineralization ranges between
approximately 20 to 60 meters in thickness and has been drilled to a general depth from
surface of approximately 300 meters (vertical). A plan view map of the Project is shown in ... see & read more on
https://erocopper.com/site/assets/files/6388/furnas_partnership_nr_vf2.pdf