Ero Copper Extends Precious Metals Purchase Arrangements with Royal Gold by US$50 million at the Xavantina Operations
Ero Copper (TSX: ERO, NYSE: ERO) has extended its Precious Metals Purchase Agreement with Royal Gold for the Xavantina Operations in Mato Grosso, Brazil, receiving an additional $50 million in upfront proceeds. This brings the total proceeds from Royal Gold to $160 million since 2021.
The Stream Supplement extends gold delivery threshold milestones and expands the area of influence to include additional tenements. The agreement maintains a three-stage structure:
- Stage I: Royal Gold receives 25% of gold production for 20% of spot price (first 49,000 ounces)
- Stage II: 25% of gold for 40% of spot price (until 160,000 ounces delivered)
- Stage III: 10% of gold for 40% of spot price (remaining life of mine)
The supplement adds approximately 40,200 ounces of gold to be delivered to Royal Gold, with deliveries expected to commence in 2028. Proceeds will support ongoing growth and asset integrity investment programs at Xavantina Operations.
Ero Copper (TSX: ERO, NYSE: ERO) ha esteso il suo Accordo di Acquisto di Metalli Preziosi con Royal Gold per le Operazioni di Xavantina in Mato Grosso, Brasile, ricevendo ulteriori 50 milioni di dollari in proventi anticipati. Questo porta il totale dei proventi da Royal Gold a 160 milioni di dollari dal 2021.
Il Supplemento allo Stream estende le soglie di consegna dell'oro e amplia l'area di influenza per includere ulteriori concessioni. L'accordo mantiene una struttura a tre fasi:
- Fase I: Royal Gold riceve il 25% della produzione di oro per il 20% del prezzo di mercato (prime 49.000 once)
- Fase II: 25% dell'oro per il 40% del prezzo di mercato (fino a 160.000 once consegnate)
- Fase III: 10% dell'oro per il 40% del prezzo di mercato (vita residua della miniera)
Il supplemento aggiunge circa 40.200 once di oro da consegnare a Royal Gold, con consegne previste per iniziare nel 2028. I proventi supporteranno i programmi di crescita continua e di investimento per l'integrità degli asset presso le Operazioni di Xavantina.
Ero Copper (TSX: ERO, NYSE: ERO) ha ampliado su Acuerdo de Compra de Metales Preciosos con Royal Gold para las Operaciones de Xavantina en Mato Grosso, Brasil, recibiendo 50 millones de dólares adicionales en ingresos anticipados. Esto eleva el total de ingresos de Royal Gold a 160 millones de dólares desde 2021.
El Suplemento del Stream extiende los hitos de entrega de oro y amplía el área de influencia para incluir concesiones adicionales. El acuerdo mantiene una estructura de tres etapas:
- Etapa I: Royal Gold recibe el 25% de la producción de oro por el 20% del precio de mercado (primeras 49,000 onzas)
- Etapa II: 25% del oro por el 40% del precio de mercado (hasta 160,000 onzas entregadas)
- Etapa III: 10% del oro por el 40% del precio de mercado (vida restante de la mina)
El suplemento añade aproximadamente 40,200 onzas de oro que se entregarán a Royal Gold, con entregas previstas para comenzar en 2028. Los ingresos apoyarán los programas de crecimiento continuo y de inversión en la integridad de los activos en las Operaciones de Xavantina.
Ero Copper (TSX: ERO, NYSE: ERO)는 브라질 마투그로소에 위치한 Xavantina Operations와의 로열 골드와의 귀금속 구매 계약을 연장하며 추가로 5천만 달러의 선불 수익을 받았습니다. 이는 2021년 이후 로열 골드로부터 받은 총 수익을 1억 6천만 달러로 늘립니다.
스트림 보충은 금 전달 기준 이정표를 연장하고 추가적인 권리를 포함하도록 영향력을 확대합니다. 계약은 세 단계 구조를 유지합니다:
- 1단계: 로열 골드는 20%의 시장 가격으로 금 생산의 25%를 수령합니다 (첫 49,000 온스)
- 2단계: 40%의 시장 가격으로 금의 25%를 수령합니다 (160,000 온스가 전달될 때까지)
- 3단계: 40%의 시장 가격으로 금의 10%를 수령합니다 (광산의 남은 수명)
보충은 로열 골드에 전달될 약 40,200 온스의 금을 추가하며, 2028년부터 전달이 시작될 것으로 예상됩니다. 수익은 Xavantina Operations에서 지속적인 성장 및 자산 무결성 투자 프로그램을 지원할 것입니다.
Ero Copper (TSX: ERO, NYSE: ERO) a prolongé son Accord d'Achat de Métaux Précieux avec Royal Gold pour les Opérations Xavantina au Mato Grosso, Brésil, recevant un montant supplémentaire de 50 millions de dollars en avances. Cela porte le total des revenus de Royal Gold à 160 millions de dollars depuis 2021.
Le Supplément au Stream prolonge les jalons de livraison d'or et élargit la zone d'influence pour inclure des concessions supplémentaires. L'accord conserve une structure en trois étapes :
- Étape I : Royal Gold reçoit 25 % de la production d'or pour 20 % du prix au comptant (premières 49 000 onces)
- Étape II : 25 % de l'or pour 40 % du prix au comptant (jusqu'à 160 000 onces livrées)
- Étape III : 10 % de l'or pour 40 % du prix au comptant (durée de vie restante de la mine)
Le supplément ajoute environ 40 200 onces d'or à livrer à Royal Gold, avec des livraisons prévues pour commencer en 2028. Les revenus soutiendront les programmes de croissance continue et d'investissement pour l'intégrité des actifs aux Opérations Xavantina.
Ero Copper (TSX: ERO, NYSE: ERO) hat seine Vereinbarung über den Kauf von Edelmetallen mit Royal Gold für die Xavantina-Betriebe in Mato Grosso, Brasilien, ausgeweitet und erhielt zusätzliche 50 Millionen Dollar an Vorauszahlungen. Dies erhöht die Gesamteinnahmen von Royal Gold auf 160 Millionen Dollar seit 2021.
Die Stream-Ergänzung verlängert die Schwellenwerte für die Goldlieferungen und erweitert den Einflussbereich, um zusätzliche Lizenzen einzubeziehen. Die Vereinbarung behält eine Struktur in drei Phasen bei:
- Phase I: Royal Gold erhält 25 % der Goldproduktion für 20 % des Spotpreises (erste 49.000 Unzen)
- Phase II: 25 % des Goldes für 40 % des Spotpreises (bis 160.000 Unzen geliefert)
- Phase III: 10 % des Goldes für 40 % des Spotpreises (Restlaufzeit der Mine)
Die Ergänzung fügt Royal Gold etwa 40.200 Unzen Gold hinzu, die voraussichtlich ab 2028 geliefert werden. Die Einnahmen werden die laufenden Wachstums- und Investitionsprogramme zur Integrität der Vermögenswerte in den Xavantina-Betrieben unterstützen.
- Secured additional $50 million in immediate funding
- Mineral reserves and resources have increased recently
- Strong strategic partnership with Royal Gold maintained
- Proceeds will support growth and asset integrity investments
- Commits to selling significant portion of future gold production at discount to market price
- Extended delivery obligations could impact future revenue potential
Insights
Ero Copper's
What's notable about this structure is the delayed impact - additional deliveries don't begin until 2028, giving Ero three years to deploy this capital toward operational improvements before incurring the increased delivery obligations. The company is effectively monetizing 40,200 ounces of future gold production at
The expansion of the stream's "area of influence" to include additional tenements acquired since 2021 suggests successful exploration and resource growth. Royal Gold's willingness to invest additional capital validates Ero's operational capabilities and the untapped potential at Xavantina.
This transaction serves dual purposes: funding the already-planned 2025 capital expenditures while providing a strong third-party endorsement of Xavantina's long-term viability. For a company with a
(all amounts in US dollars, unless otherwise noted)
VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the “Company”) is pleased to announce that, in return for upfront proceeds of
The Stream Supplement is incremental to the Original Xavantina Stream. Under the terms of the Stream Supplement, Ero has received a further
“The performance and growth prospects for the Xavantina Operations, combined with recent increases in mineral reserves and resources, creates an opportunity to capitalize on what continues to be a significant dislocation of value for the Xavantina Operations with a strong strategic partner in Royal Gold," said Makko DeFilippo, President & Chief Executive Officer.
“Proceeds from the Stream Supplement will support ongoing growth and asset integrity investment programs at the Xavantina Operations, which were included in our 2025 capital expenditure guidance. We continue to see significant potential in the Xavantina Operations. With the support of Royal Gold, we are focused on positioning the mine for future growth, improved operating performance and long-term value creation.”
KEY TERMS OF EXTENDED XAVANTINA STREAM
- Stage I: Royal Gold will continue to receive
25% of gold produced in exchange for cash payments equal to20% of the prevailing spot gold price for the first 49,000 ounces delivered. Stage I remains unchanged from the Original Xavantina Stream, with a cumulative 45,177 ounces delivered as of December 31, 2024. - Stage II: Royal Gold will receive
25% of gold produced in exchange for cash payments equal to40% of the prevailing spot gold price until a cumulative 160,000 ounces have been delivered. - Stage III: Following the completion of Stage II, Royal Gold will receive
10% of gold production for the remaining life of mine in exchange for cash payments equal to40% of the prevailing spot gold price. The terms of Stage III remain unchanged from the Original Xavantina Stream.
In effect, the Stream Supplement equates to an additional 40,200 ounces of gold to be delivered to Royal Gold, for which it will make cash payments equal to
All terms and conditions of the Original Xavantina Stream remain in place. For more information please see the Company's press release dated June 30, 2021.
GenCap Mining Advisory Ltd. acted as financial advisor to the Company.
ABOUT ERO COPPER CORP
Ero Copper is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, Executive Vice President, External Affairs and Strategy (604) 335-7504
info@erocopper.com
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the anticipated timeframe for the delivery of additional ounces under the Stream Supplement and the expected future growth, increased operating performance and long-term value creation at the Xavantina Operation. .
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Company’s Annual Information Form for the year ended December 31, 2023 (“AIF”) under the heading “Risk Factors”. The risks discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading “Risk Factors”.
The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations, the Tucumã Operation and the Furnas Copper-Gold Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates, interest rates and tariff rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
FAQ
How much additional funding did Ero Copper (ERO) receive from Royal Gold in the stream extension?
When will Ero Copper begin delivering additional gold ounces under the new stream supplement?
How many additional gold ounces will Ero Copper deliver under the new stream agreement?
What are the payment terms for Stage II of the extended Xavantina stream?
How many ounces have been delivered under Stage I of the Xavantina stream as of December 2024?
