Ero Copper hammers out deal with Brazil's Vale to advance Furnas project

Vancouver-based Ero Copper said it entered into a binding term sheet with Salobo Metais, part of mining giant Vale's subsidiary Vale Base Metals (VBM), to advance its Furnas copper project in the Carajás mineral province in Pará state.

"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," Ero said in a release.

In exchange for the 60% interest, Ero will fund a phased exploration and engineering work program during the earn-in period, granting VBM up to an 11.0% free carry on future project construction capital expenditures, it added.

"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," CEO David Strang said. 

"As construction of our Tucumã Project approaches completion in the coming year, we look forward to Furn as 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," he added.

Furnas is an iron oxide-copper-gold project located approximately 50km southeast of VBM's Salobo operations and approximately 190km northeast of Ero's existing Tucuman project.

Ero Copper said that as part of its overall work program, it intends to validate the historical exploration drill database, develop block models incorporating planned infill and extensional drilling to prepare a mineral resource estimate, generate selective mine designs, perform confirmatory metallurgical test work, develop process flow sheet designs, undertake geotechnical and environmental studies, and advance various community and social programs.