Ero Copper recently announced the closing of its offering, on a bought deal basis, of a little more than 9 million shares at a price of $12.35/share, which generated about $111 million. The company intends to use the proceeds from the transaction to fuel the growth of its Tucumã project and its Caraiba operations, as well as to further expand regional exploration in Brazil.
The Tucumã project is located near the city of Tucumã, in the mining province of Carajás, in the Brazilian state of Pará. Based on a 2021 feasibility study, the project could produce 326,000 tons of copper over the 12-year mine life. All engineering, procurement and construction activities at the site are progressing smoothly, and the company expects to start copper production in the second half of next year.
The Caraíba mine is located 385 km from Salvador de Bahia, Brazil. It comprises fully integrated mining operations and processing facilities, including the Pilar and Vermelhos underground mines, as well as the Surubim open pit mine. Ore produced at the mine is processed by crushing and flotation methods at the Caraíba mill.