is happy to announce the completion of its offering of 9,010,000 common shares, on a bought deal basis, for gross proceeds of approximately US$111 million (the “Offering”). This includes 500,000 common shares issued as a result of the partial exercise of the Underwriters’ (as defined below) over-allotment option (the “Common Shares”). The offering price was US$12.35 per common share. The Offering, which was made public on November 6, 2023, was carried out by a syndicate of underwriters that included Canaccord Genuity Corp., CIBC World Markets Inc., Scotia Capital Inc., and BMO Capital Markets as the sole bookrunner and lead underwriter.
The “Underwriters” include Raymond James Ltd., TD Securities Inc., Cormark Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., PI Financial Corp., and Stifel Canada.
As further detailed in the Prospectus Supplements (as defined below), the net proceeds of the Offering will be utilised for working capital and other general corporate purposes, as well as to advance growth initiatives at the Company’s Tucumã Project and Caraiba Operations, as well as regional exploration in Brazil.
The Common Shares were offered through a Canadian prospectus supplement dated November 8, 2023 (the “Canadian Prospectus Supplement”) to the Company’s Canadian short form base shelf prospectus dated August 18, 2023 (the “Base Shelf Prospectus”) in all Canadian provinces and territories (excluding Quebec). The Common Shares were also offered in the United States through a U.S. prospectus supplement dated August 18, 2023 (the “U.S. Prospectus Supplement”) and together with the Canadian Prospectus Supplement, the “Prospectus Supplements”), which formed part of the Company’s effective registration statement on Form F-10 (the “Registration Statement”) filed under the Canada/U.S. multi-jurisdictional disclosure system.
The common shares are not to be sold or offered for purchase in any state or jurisdiction where such an offer, solicitation, or sale would be illegal before registration or qualification under the securities laws of such state or jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to buy the common shares.
Ero is a low-carbon, high-margin, high-growth copper producer with operations in Brazil and a corporate office in Vancouver, British Columbia. Located in the Curaçá Valley, Bahia State, Brazil, the Company’s principal asset is a 99.6% interest in Mineração Caraíba S.A. (“MCSA”), a Brazilian copper mining company that owns 100% of the Company’s Caraíba Operations (formerly known as the MCSA Mining Complex). These operations comprise the Pilar and Vermelhos underground mines, the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project situated in Pará, Brazil. Additionally, the Company holds 97.6% of NX Gold S.A.