Ero Copper Moves to Enter Earn-In Agreement for 60% Interest in Brazil Copper Project

By Robb M. Stewart

Ero Copper has reached an agreement that would see it earn a majority stake in Vale's Furnas copper project in Brazil.

Under a binding term sheet signed by the companies, the Canadian miner would secure a 60% interest in the project after completing several exploration, engineering and development milestones over five years, after a definitive earning-in deal is executed.

British Columbia-based Ero, which is focused on mining operations in Brazil, said Monday it will be required to complete three phases of work at the Furnas project, beginning with at least 28,000 meters of exploration drilling and the production of a scoping study within 18 months of the definitive deal being agreed.

Ero said it will solely fund a phased exploration and engineering work program during the earn-in period and grant Vale Base Metals up to an 11% free "carry" on future project construction capital expenditures.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 30, 2023 07:24 ET (11:24 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.