Ero Copper announces a US$25.6 million reduction in total debt
VANCOUVER, British Columbia, Dec. 21, 2017 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX:ERO) (the “Company”) is pleased to announce a US$25.6 million (15.4%) reduction in consolidated total debt. The reduction in debt is being facilitated by replacing US$75.6 million in senior secured notes of the Company’s subsidiary, Mineração Caraíba S.A., held by Itaú Unibanco S.A and Banco Votorantim S.A., with a new US$50 million senior secured non-revolving credit facility (the “Facility”) with The Bank of Nova Scotia.
The new Facility matures 5 years from closing and features a 12-month principal payment holiday with equal quarterly principal installments thereafter. The Facility bears an interest rate of LIBOR + 7.0% for the first 12 months, and subject to the completion of construction of the Vermelhos Mine, will bear a reduced interest rate of between LIBOR + 4.5% and LIBOR + 5.5% depending on the Company’s leverage ratio at that time.
A copy of the Facility Agreement and Participation Agreement will be filed on SEDAR.
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver, B.C., is focused on copper production growth from the Vale do Curaçá Property, located in Bahia, Brazil. The Company’s primary asset is a 99.5% interest in the Brazilian copper mining company, Mineração Caraíba S.A. (“MCSA”), 100% owner of the Vale do Curaçá Property with over 37 years of operating history in the region. The Company currently mines copper ore from the Pilar underground and the Surubim open pit mines. In addition to the Vale do Curaçá Property, MCSA owns 100% of the Boa Esperanҫa development project, an IOCG-type copper project located in Pará, Brazil. Additional information on the Company and its operations, including Technical Reports on both the Vale do Curaçá and Boa Esperanҫa properties, can be found on the Company’s website (www.erocopper.com) and on SEDAR (www.sedar.com).