Ero Copper and Vale close agreement on Brazil's Furnas project

Vancouver-based Ero Copper closed a deal with Salobo Metais, part of mining giant Vale's subsidiary Vale Base Metals (VBM), to advance its Furnas project in the Carajás mineral province, in Brazil’s Pará state.

Furnas is an iron oxide-copper-gold project about 50km southeast of VBM's Salobo operations and 190km northeast of Ero’s Tucumã project.

First details of the deal were announced last year, when Ero Copper said it will earn 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 the interest, Ero will fund a phased exploration and engineering work program during the earn-in period, granting VBM up to 11% free carry on future project construction capital expenditures.